How First-Time Buyers Could Be Affected by the 2025 Mortgage Market

For first-time buyers, 2025 presents both challenges and opportunities in the UK housing market. With interest rates expected to gradually decline from their 2024 peak, mortgage affordability could improve, making homeownership more accessible. Lower borrowing costs may encourage more buyers to enter the market, increasing competition for properties, particularly in high-demand areas. However, lenders may continue to enforce strict affordability criteria, requiring buyers to demonstrate strong financial stability.

Government schemes, such as the First Homes initiative and shared ownership programs, remain key options for first-time buyers looking to get onto the property ladder. With potential rate cuts on the horizon, now could be a good time for prospective homeowners to start planning, assessing their mortgage options, and seeking professional advice. At AF & Associates Ltd, we help first-time buyers navigate the mortgage process, ensuring they secure the best possible deal for their circumstances. If you're looking to buy your first home in 2025, get in touch to explore your options.