Criteria searches made on behalf of first-time buyers jumped by 22% between February and March, according to data from Legal & General’s SmartrFit platform.

This represented the second most popular search term overall in the month of March.

L&G also revealed that total searches in March were up, with monthly searches topping January and February’s figures and reaching the highest level since August 2022, indicating that market conditions remain healthy.

The SmartrFit data also indicated that other sections of the market registered growth in March. Searches for HMO properties increased by 24.6%, which L&G suggested shows landlords are responding to rental demand with the buy-to-let market showing signs of resilience. The single most popular mortgage criteria search for the month was made for applicants with a visa, continuing a six-month long trend.

Despite this, some borrowers still remain in a more challenging financial position. The data showed that searches linked to the criteria for missed mortgage payments jumped by 24%, suggesting that recent rate rises, high inflation, as well as the cost of living are still weighing heavily for some existing mortgage holders.

These ongoing affordability issues have created an environment where more borrowers are leaning on financial gifting to boost their borrowing power. As such, L&G highlighted that searches made on the basis of a gifted deposit climbed by 19% as borrowers potentially looked to leverage an inheritance or financial gift to make their first step onto the property ladder.

“Our data is a strong indicator that affordability is gradually improving for some,” commented head of mortgage products and transformation at L&G Technology, Jodie White.

“On one side of the market, first-time buyers are stepping forward to realise their home owning dreams, but many are having to lean on gifted deposits and other forms of financial gifting to fund their purchase.

“There are also still signs to suggest that many people have not yet recovered from the financial hardship of the last year and are very much in need of the support of an adviser to find a product that best suits their borrowing profile.”

“When advising borrowers who are navigating a change in their finances, especially those who are finding themselves in a vulnerable position, brokers should be taking full advantage of the technology at their disposal.

“Open data platforms and advanced CRM softwares are just two of the many tools advisers can use to cut out time-consuming manual tasks so they can focus on what they do best – giving high quality advice to those who need it the most.”

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