MORTGAGE brokers have reported a 50% increase in demand from first-time buyers (FTBs) as lenders reduce their rates at higher loan-to-values (LTVs) and look to new and innovative ways to boost affordability.
One London-based broker said FTBs “are back, and in force”, with 60% of his enquiries coming from them, while a lender said “the number of available products and schemes specifically designed to support first-time buyers has perhaps never been higher”.
Major lenders such as Santander have this month slashed FTB rates by up to 0.32%, while other lenders, such as Melton Building Society, have been focused on zero deposit mortgages, recently extending its 100% LTV mortgage to borrowers around the UK.
First-time buyer enquiries up 50%
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said: “We’ve seen a 50% rise in first-time buyer enquiries compared to this time last year, and they now make up around 20%-30% of the business we’re seeing nationally. The real demand is at 95% LTV, as that’s where most buyers feel comfortable.
“While lenders such as Melton Building Society reintroducing 100% mortgages is positive for accessibility, enquiries for those types of loan remain limited. Buyers understand the risks around negative equity and higher long term costs.
“The improvement in choice is boosting confidence, though, and if lenders continue to compete sensibly at higher LTVs, 2026 could be a strong year for first-time buyers.”
Lenders competing aggressively
Louis Mason, Communications Director at London-based Oportfolio Mortgages, said his firm has also been busy dealing with FTB enquiries, but that too few aspiring homeowners are aware of the options now available to them.
He said: “We’re seeing a clear increase in first-time buyer activity as lenders compete more aggressively for business. Rate cuts in the 90%–95% LTV space and the return of some 100% LTV products have definitely shifted opinions for many renters who once felt locked out of purchasing their own property. The door now feels at least partly open again.
“First-time buyer enquiries are up generally, and this is likely due to improved affordability and growing confidence as lenders innovate. However, awareness still lags behind reality. Many buyers assume they need large deposits or that high loan-to-value (LTV) rates are unaffordable, so a big part of our role is helping them understand how much choice has returned to the market.
Zaman Sheikh, Director at Northwood Chelmsford, an estate agency, agreed that a lack of awareness is an issue.
He said: “I am finding that not many first-time buyers are aware of the availability of 100% mortgages, and those that are are wary of the ‘catch’ they think comes with them, whether that’s affordability, high interest rates or stricter lender criteria.”
Perfect time for FTBs
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, believes “right now is the perfect time for first-time buyers to get on the housing ladder” — but he warned that the window of opportunity could soon slam shut.
He said: “It is still a buyers’ market and, with interest rates reducing and affordability and deposit requirements easing, more and more aspiring borrowers are getting a leg up onto that important first rung.
“However it is important to know your budget, be prepared and utilise your strong negotiation position to secure your dream first home for the best possible price.
“Also, first-time buyers need to be extremely wary that, if mortgage rates continue to fall and the base rate is cut, things could switch from a buyers’ to a sellers’ market overnight.
“Then first-time buyers will find that the affordability they have now will start to be stretched as house prices start to edge up again. It’s a window of opportunity that could slam shut at any time.”
FTBs back in force
Craig Fish, Director at London-based Lodestone Mortgages, is also seeing strong demand from people keen to get that first step on the ladder and says it’s helping the wider property market get moving.
He said: “First-time buyers are back, and in force. Around 60% of my new enquiries right now are from FTBs, which is a clear jump on this time last year. Bigger rate cuts at higher LTVs and the return of more 100% deals have injected real confidence into the market.
“It’s not just helping people become owners, it’s unlocking the whole chain. When first-time buyers move, everyone else can. Spring has definitely brought a breath of fresh air. There’s momentum building and, if swap rates keep easing, 2026 could absolutely become the year of the first-time buyer.
“But this window won’t stay open forever. Whilst it feels like a buyers’ market today, that can change quickly if demand ramps up. Preparation will be everything.”
More options for FTBs
Peter Dockar, Chief Commercial Officer at Gen H (Generation Home), a lender, said: “While housing affordability is a stretch for too many, a combination of improving house price to income ratios and lower interest rates alongside them is meaning there are more options for FTBs (especially at high Loan to Incomes) than at any point in the past 15 years.
“We’ve seen this at Gen H with the number of buyers feeling confident to borrow more than 4.5x their salary double since August. We’ve also been delighted to see cases where long-time renters are using tools like 95% LTV Part & Part interest-only to purchase off their landlord and finally own their own home.
“The number of available products and schemes specifically designed to support first-time buyers has perhaps never been higher, and I am thrilled to see so many people benefitting.”
So much choice
Kylie-Ann Martin, Director at Selby-based KAG Financial, a broker, is also busy with FTB enquiries: “We have definitely seen an increase in first-time buyers during the first two months of 2026. With lenders reducing rates, and many more options being available for lower deposits, it’s easy to see why.”
Aaron Strutt, Product and Communications Director at London-based Trinity Financial, said choice has skyrocketed over the past 12 months.
He continued: “There is little doubt that first-time buyers have a huge amount of choice when it comes to mortgage options and getting on the property ladder. There are low- or no-deposit mortgage options, income multiples of up to 6.5 times salary and an increasing number of options for those renting or requiring help from the Bank of Mum and Dad.
“It is impossible for first-time buyers to know all of the options available to them, simply because there is so much choice, and the market changes on a daily basis.”
Photo by Andy Hermawan on Unsplash
