First-time buyer demand 'as strong as ever' despite increased caution, brokers say

51% of brokers have seen an increase in remortgage applications in the past six months, according to the latest survey conducted by Family Building Society.

Almost three-quarters (71%) said there had been a rise in borrowers opting to take out two-year fixed loans rather than five-year deals. A combination of geopolitical tensions and the cost of living, including rising energy prices, are affecting buyer confidence.

Over half of those surveyed (51%) said there had been a drop in mortgage applications for home moves, up from 38% in the previous survey of brokers’ sentiments conducted the autumn of 2025.

Well over half (59%) have noticed an increase in enquiries where family members want to support the mortgage or help with moving costs and 79% said the desire by the younger generation to get on to the housing ladder was as strong as ever.

Among broker comments compiled by the survey, were: “Owning a home is a popular life goal for many young people. They see influencers with their own home and want the same.” and “Parents are keen to get their children on the property ladder and are helping with deposits.”

Looking forward, brokers said low-income households (73%), first-time buyers (54%) and self-employed clients (46%) were the groups that were at the most risk of affordability in the next six months.

Alistair Nimmo, director of marketing at Family Building Society, said: “It is clear the longer geopolitical tensions persist the more likely homeowners are going to put on hold any plans to move on, while first-time buyers are as reliant on family support as in the past.

“The move towards two-year fixed mortgages shows that borrowers do not want to be tied into higher rates in the longer term and are hoping the market will return to the relatively lower rates seen in the recent past”.