First-time buyers and home movers gave the UK mortgage market a much-needed lift towards the end of 2024, according to UK Finance¹. Home purchases reached 622,000 in 2024, up 15.6% on the previous year. Lower mortgage rates boosted demand, particularly in the fourth quarter, as buyers sought to complete before April’s Stamp Duty changes. 

However, remortgage activity fell by 9% to 1.6 million, as fewer fixed-rate deals came to an end. That trend could reverse in 2025, with 1.8 million mortgages due to expire. Most borrowers remortgage with their current lender, though UK Finance expects more to switch providers this year. 

High house prices and tight lending criteria have made it challenging for buyers, especially in London. Since stricter rules were introduced in 2014, getting a mortgage above 4.5 times salary has become more difficult. First-time buyers in London need deposits worth more than 2.5 times their annual income, up from 1.9 times pre-2014. 

Eric Leenders of UK Finance welcomed plans for the Financial Conduct Authority to simplify mortgage lending and advice rules. He said, “The strong end to 2024 highlights the resilience of UK households. But affordability remains a challenge, particularly in London. The upcoming regulatory review could ease lending restrictions and help more people onto and up the housing ladder.” 

¹UK Finance, 2025 

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