Lender reports higher share of individual borrowers between June and October
Santander UK has reported a notable increase in first-time buyers purchasing alone, attributing the shift in part to recent regulatory changes to mortgage affordability rules.
According to the lender, sole-borrower first-time buyer applications received between June and October 2025 were 13% higher than in the first five months of the year.
The period follows changes made by the Financial Conduct Authority (FCA) on stress testing and loan-to-income (LTI) criteria, which have allowed lenders like Santander to adjust their policies for mortgage applicants. The bank’s data indicates that 2025 is on track to be the first year in five in which solo applicants consistently outnumber joint first-time buyers.
Santander also noted a change in the profile of those buying alone. Fifty years after the Sex Discrimination Act 1975 enabled women to obtain mortgages in their own right, women account for 48% of the lender’s individual first-time buyers so far in 2025, up from 42% in 2015.
Sole-borrower activity peaked in April, when single applicants made up 56% of all new applications at the bank. This followed Santander’s March decision to be the first lender to respond to the FCA’s clarification on the use of stress rates in affordability assessments. At the time, the bank calculated that its revised approach could increase borrowing capacity for some prospective buyers by up to £35,000.
A second high point came in August, when individual applicants represented 53% of that month’s applications. This coincided with Santander’s change to its LTI limits for certain single borrowers. The bank cited an example of a sole buyer earning £75,000 and seeking a 25-year capital-and-interest repayment mortgage who, following the Aug. 12 change, could increase their maximum borrowing from £267,000 to £300,000, a rise of £33,000.
“We’ve seen a real shift in who’s driving the first-time buyer market,” said David Morris, head of homes at Santander UK. “Where once joint applications dominated, more people are now stepping onto the ladder on their own.
“This year’s mortgage changes have helped to level the playing field for solo buyers, and the data shows that momentum has held firm. It’s clear that confidence among single buyers is growing as lending policy changes bring more of them closer to the homeownership dream.”
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