There was a sharp increase in mortgage completions in the first quarter of 2025, UK Finance reveals.
This comes as both first-time buyers and homemovers rushed to complete transactions to benefit from lower Stamp Duty rates before the new rates started on 1 April.
UK Finance data shows that in Q1 first-time buyer completions increased 62% year-on-year and homemover completions increased by 74%.
March was a stand out month, with the number of FTB and homemover completions increasing by 113% and 140% respectively compared with March 2024.
Despite the surge, UK Finance suggests affordability remains stretched as borrowers continue to take longer mortgage terms to help manage affordability pressures, especially first-time buyers.
The average first-time buyer mortgage term is now 31 years as of March, compared with 28 years in March 2015.
The increase in the average term has been driven primarily by a significant increase in borrowing over a 40-year period, typically the maximum allowed under lenders’ policies.
The amount spent by first time buyers on mortgage payments relative to their income is also high.
Meanwhile, data found that refinancing activity declined by 13% in Q1, largely due to fewer fixed-rate deals maturing early in the year.
During the quarter eight out of 10 mortgages that were refinanced were done via a product transfer, which is higher than long-term averages, but lower than 83% in Q1 2024.
In total, around 1.6m fixed rates mortgages are due to expire in 2025 as a whole.
UK Finance managing director of personal finance Eric Leenders says: “We saw a significant rise in mortgage activity in the first quarter as households moved quickly to take advantage of lower Stamp Duty rates.”
“Savings also continue to build, with consumers increasingly favouring notice accounts and ISAs. As discussions around cash ISA reforms continue, it remains clear that many savers continue to favour them as a reliable means to build and protect their savings.”
“While these are signs of growing financial resilience, the challenges many households face, particularly around affordability, remain.”
