Mortgage in principle requests have increased by 59% year-on-year at Moneybox, as the firm also reported a 50% jump in mortgage applications.

Research by the personal wealth app revealed that 71% of first-time buyers (FTBs) who use the firm plan to buy a house within the next two years, with 34% planning to become homeowners in 2025.

The number of Moneybox Lifetime ISA-enabled house purchases also increased by 62% year-on-year in 2024, with HMRC data revealing that 56,900 people bought their first home with a LISA in 2023/24.

Despite this, the firm said that 2024 was a "challenging year" for FTBs, as rents increased and mortgage rates remained high.

As a result, over half of FTBs said they had saved less than hoped towards their deposit, while 28% had to dip into their deposit savings due to an unexpected emergency.

Head of mortgages at Moneybox, Felicity Hollow, said: "[This year] has been a year of resilience and determination for FTBs. Despite challenging market conditions, this community has demonstrated a remarkable ability to adapt and are increasingly making informed, well-planned decisions.

"Following the recent Budget, Moneybox recorded a 14% increase in mortgage appointments in just four weeks compared to the equivalent period beforehand, highlighting the renewed urgency among FTBs looking to complete before the start of the next tax year."

Looking ahead, Moneybox said that 31% of FTBs want to see more support from the industry to help save for a deposit.

Furthermore, 23% said they want to see 95% LTV mortgages in the market, while 19% called for a relaxation of mortgage affordability assessments, while 23% championed no-deposit mortgages.

A further 17% wanted to see an increase on the cap on loan-to-income ratios for mortgage lending.

Head of personal finance at Moneybox, Brian Byrnes, concluded: "With the stamp duty relief for first-time buyers ending in March 2025, we’re already seeing a surge in activity, with a 14% increase in mortgage appointments in the four weeks following the recent Budget. However, many aspiring FTBs who won’t be in a position to complete before the deadline face increased financial challenges.

"With the average FTB property price of £227,191 edging close to the £250,000 stamp duty threshold – and far exceeding it in areas like London, where the average is £443,550 – it’s clear that more must be done to address the affordability gap."

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