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First-time buyers

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 19. April 2023

Interested in talking to mortgage brokers about first-time buyer behaviour. 

  • In the last 12 months, have you seen more first-time buyer clients who are on higher incomes? 
  • What is first-time buyer product choice/affordability like currently? Has it changed over the past 12 months? 
  • Are first-time buyers going for products like joint borrower sole proprietor or other kind of deals? 
  • What advice would you give to first-time buyers/what do you want to see from lenders? 

 

4 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
We continue to see a good number of First Time Buyers still looking for their ideal starter home, incomes do look better through recent pay increases, but their overall affordabilty has been impacted so in reality they are no better than 12 motnhs ago. Even more have some form of family support, such as a gifted deposit, but the number of conversations about Guarantor Mortgages and Joint Borrower / Sole Propertitor schemes has seen a significant uplift. It demonstrates that parents are keen to support their children, and are able to offer a number of options depending upon their own fianncial situation.
Engaging with a Mortgage Broker must be the starting point for all First Time Buyers, not only to help educate on the options and mechanics of borrowing, but importantly to manage expectations, check which lenders are best suited, how to maximise their borrowing power, using these great schemes that genuinely help.
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Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
Several lenders provide first-time buyer products that offer little variation in interest rates, but may include incentives like cashback. Despite this, our firm has observed no difference in first-time buyers' behaviour. To prospective first-time buyers, I recommend seeking out a broker who can access multiple lenders, such as our firm, which has access to over 80. It's best to approach them up to 18-24 months in advance of your intended purchase to plan for the required deposit, explore available schemes, and evaluate other options. Some exclusive schemes may only be available through a broker-exclusive lender.
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Joe Stallard
Director and Advisor at House and Holiday Home Mortgages
We’ve found the number of first-time buyers coming to us has actually stayed consistent over the last year.

A few things are changing though. For example, more and more first-time buyers now seem to have help with the deposit from family members. And many of them are showing interest in schemes such as ‘joint borrower sole proprietor’, where not everyone paying the mortgage is named as a legal owner on the deeds. In practice, however, the details of these products often make them tricky to work for the client.

It would be lovely to see lenders looking at things like proof of sustained rental payments when they’re assessing mortgageability. Relying on credit scores alone doesn’t help if customers haven’t had time to build that up.

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Luke Thompson
Director at PAB Wealth Management
I can't say that I have seen more first time buyers who are earning more. What I have noticed in the past 12 months is more client's are needing to not only extend their budgets but also do everything they can to reduce their monthly payments.

The best advice I can give to first time buyers is to save as hard as you can. Use schemes like the Lifetime ISA to help you boost your deposit or shared ownership properties can help you to get on the property ladder. Most importantly don't look to overstretch yourself if possible when buying your first home.