Mortgage enquires rose by 421% in the first week of March following the extension of the stamp duty holiday, according to MoneySuperMarket.
Data collected by the company shows that this increase has been led by first-time buyers, with enquiries up 472% for those looking to take their first step on the housing ladder.
Following the news of the Mortgage Guarantee Scheme, the website also saw renewed interest in high LTV mortgages with searches for products requiring a 5% deposit making up 39% of enquires in the first week of March.
In comparison, searches for this product type were at 20% of enquires during the first week of February.
Previous research by MoneySuperMarket revealed 74% of Brits wanted the Chancellor to extend the stamp duty holiday.
The scheme is now scheduled to come to an end on 30 June, having originally been scheduled to end on 31 March.
Jo Thornhill, finance expert at MoneySuperMarket, said: “The stamp duty holiday extension has clearly been welcomed by those looking to buy a new home, and in particular by first time buyers.
“Similarly, the government backed scheme for those with a 5% deposit has also sparked renewed interest in higher LTV mortgage products.
“While the stamp duty holiday extension is good news for those looking to move soon, the deadline is still just three and a half months away, potentially cutting it fine for anyone still looking to find a new property and complete on a purchase before the end of June.
“Those currently looking for a new property will need to move quickly to benefit from the current scheme.
“A bigger choice of mortgage deals for those with a 5% deposit from April 2021 is positive news, not just for first time buyers, but for all homebuyers on properties up to £600,000.
“However, it is important to compare the rate you’re getting on your mortgage to ensure it’s the best deal and that you’re comfortable with the monthly repayments.”