First-time buyers are taking a bigger slice of the Mortgage Market

Market Insight:

• The composition of the mortgage market has remained remarkably consistent over the last 10 years, according to latest data from the FCA.
• The one clear change is the rise in the number of first-time buyers, an offset to the fall in buy-to-let mortgages.
• First-time buyers now account for a higher 27.4% of mortgage lending versus the 10 year average of 23.6%. This is almost entirely met by the lower proportion of buy-to-let lending which currently accounts for 8.9% of mortgages versus 11.5% average over last 10 years.
• The critical turning point for this was the start of the higher stamp duty rates on second properties affecting buy-to-let, first in 2016 and again in 2024.
• With higher recent interest rates in 2026 due to the potential inflationary pressures of the Iran conflict – these patterns might shift a little across the rest of 2026. Source: Dataloft by PriceHubble, FCA Mortgage Statistics, Q1 2026