A broker has released internal data to give a snapshot of the year’s mortgage market. 

Mojo Mortgages says 2024 has been a transformative year, marked by significant changes. While the sector saw the first drop in the Bank of England’s base rate since March 2020, many homeowners faced increased payments as previous fixed-rate deals came to an end.

The lender’s key trends were: 

First-time buyer trends

• A 20% increase in first-time buyers seeking our help this year;

• Over half (50.8%) of these buyers were aged between 25 and 34;

• Surprisingly 1 in 20 (5%) of first-time buyers were aged between 51 and 64;

• The average deposit for first-time buyers decreased by 6.1% to £54,894, while loan amounts rose by 5.8% to £221,309

• However, the average mortgage term increased from 29 years and 4 months to 29 years and 11 months. 

Remortgaging trends

• In 2024, 1 in 7 (14%) of customers remortgaged specifically to fund home improvements. This shows how homeowners are creatively using their equity to improve their living spaces;
• Additionally, almost half (48%) opted for product transfers with their existing lenders, while 52% chose to switch lenders for potentially better rates.

Mortgage product trends

• Some 95% of customers opted for fixed-rate mortgages this year, demonstrating a strong preference for stability during uncertain times;
• Among these, more than two-thirds (68.8%) chose 2-year fixed-rate mortgages due to their lower rates and flexibility;
• Autumn was the busiest season for mortgage activity, accounting for over a third (36.4%) of all approved mortgages. 

A spokesperson for Mojo says: “We saw the first Bank of England base rate drop since March 2020, which initially brought some relief. However, many homeowners still faced steep payment increases as pre-Liz Truss fixed-rate deals came to an end. Mortgage rates fluctuated throughout the year, with two-year fixed rates ranging from 4.5% to 5.3%, and 5-year fixed rates between 4.1% and 4.9%.

“Despite these challenges, we’ve seen remarkable resilience from homebuyers. The number of first-time buyers we helped increased by 20% this year, with many adapting to affordability issues by opting for longer mortgage terms – now averaging nearly 30 years. It’s also fascinating to see 5% of first-time buyers in the 51-64 age bracket, proving it’s never too late to get on the property ladder.

“Looking ahead to early 2025, we’re anticipating a busy period. The recent autumn budget measures are expected to reduce competition from landlords, potentially opening up more opportunities for first-time buyers. Additionally, with Stamp Duty Land Tax (SDLT) rates changing from 1st April, we’re likely to see a surge of activity in the first quarter as people try to complete purchases before any new rules take effect.

“These trends, combined with the overwhelming 95% preference for fixed-rate mortgages we saw in 2024, indicate that stability and long-term planning remain top priorities for homeowners in these uncertain times. At Mojo, we’re geared up to help our customers navigate these changes and find the best mortgage solutions for their needs in the coming year.”