Natwest chairman comments

I deal pre-dominantly with first time buyers and with 5% and 10% deposits I do not think it is difficult to secure a mortgage for couples buying together. It is rare you will see a couple declined unless there is adverse credit in the background.

The frustrations from first time buyers that I hear more often is affordability when buying alone not being high enough for desired property or the difficulty in saving with the cost of living currently.

I have noticed more and more buyers moving back home to save and then buy as opposed to renting and then buying

I disagree if we are saying "it's just easy", as let's face it many young people have to be in a couple to stand any chance of getting a decent first home and meeting affordability.

I think back to my younger self and wish I had some advice from an advisor to begin the process and what I should do concerning saving/planning. I think support should be given concerning the knowledge of how to save and budget as these are two very key skills to have before buying a home and skills that become even more important once you own one!

It also depends geographically on where you are, but all in all, I think it's wrong to say it's easy, as it requires years of work and hard savings before you even get to the point of borrowing. Plus you have to have your career in a settled state as taking on a mortgage with an unsteady career can cause unnecessary stress and pressure.

I think that with the right knowledge getting on the ladder is more achievable than a lot of people think. Some clients don't know that they may only need a 5% deposit or that it is potentially possible to get a 100% mortgage or even use a bank loan for deposit with some lenders if saving isn't feasible. That's why it's always good to speak to a broker as early as possible to take some advice and guidance.

If I was on the board of Natwest I would be concerned about these comments from the Chairman - clearly, his privileged upbringing has left him with a tenuous grip on reality.

Whilst his comments around 100% lending and the risks of this to lenders and borrowers alike are accurate - the combination of house prices, wage stagnation, cost of living and other factors like the scaling back of schemes to assist First Time Buyers like Help to Buy mean that there has never been a more challenging time to get on the housing ladder.

Fortunately for first-time buyers, brokers do understand the challenges, pressure and obstacles first-time buyers will encounter and will hold their hand to navigate the minefield that is placed in their path.

More is needed from the government to support buyers stepping into home ownership - there is a desperate demand for more affordable housing, Shared Ownership needs a revamp and relaunch and an updated version of Help to Buy would be welcomed .

I disagree, many first time buyers currently residing in rental accommodation, they have experienced a significant surge in their rental expenses over the past year. Without assistance in the form of family-contributed deposits, a portion of these first-time buyers may encounter challenges raising the deposit amount they require to get onto the property ladder. I think there should be an increased support for 100% mortgages tailored to first-time buyers. In my view, the government should consider implementing a mortgage guarantee program for 100% mortgages.

Hmm Sir Howard Davies - the Gamekeeper that turned Poacher (ex-Financial Services Authority Charmain) making comments about the opportunities First Time Buyers have in 2024, seems a little bit off-piste. Yes younger purchasers have a good chance to get on the property ladder with family deposit assistance, perhaps a wealthy application guarantor, or maybe by using a 100% Shared Ownership Mortgage route - but with applicants all scrabbling for the maximum loan to values and maximum income multiple deals it's a far cry from his "not difficult" comment. Perhaps he should stick to what he does best and leave the marketing down to those qualified to do so at Natwest, who is still a company part-owned by the taxpayers due to needing to be bailed out in 2008.

First-time buyers and many others have had enough of the nostalgia from those who snagged their first homes for a few thousand pounds, boasting minimal deposits and mortgages at low multiples of their income. They're oblivious to the hurdles faced by today's first-time buyers in Scotland and across the UK. Without a boost of a gift from family or an inheritance windfall, saving for and scraping together the minimum deposit required for an average-priced Scottish home is a monumental task, due to the cost of living for all and particularly for those stuck in the web of rising rents within the Scottish private rental sector. First-time buyer's ability to buy their first home is more challenging than ever, not due to lack of desire or financial recklessness, but because the odds are stacked against them from the outset.

Sir Howard Davies's comments are - as usual - widely out of touch and downright insulting to those who are experiencing the reality of the UK housing market.

In the wake of the conclusion of the Help to Buy scheme and recent interest rate increases, the property market faces evolving challenges. Affordability remains a significant hurdle, especially with the increased costs of borrowing post-rate hikes. Saving for a deposit, particularly for those in rented accommodation, is a time-consuming process, and the limited supply of available properties adds complexity. While recent price drops offer some relief, many first-time buyers are exploring options further afield due to difficulties in saving a substantial deposit. The reliance on the "Bank of Mum and Dad" underscores the need for a coordinated and concerted approach, recognising that such support is not universally accessible.

Sadly, I can't agree with Sir Howard. Whilst I do not see affordability as a huge barrier currently for many people, deposit remains a big issue. One lender is offering 100% mortgages in the mainstream market, and that has caveats. There are another one or two offering the same in the Shared Ownership space. Many lenders do offer a 5% deposit option, but 5% of even a modest property is still an awful lot of money for people to save. Support schemes post Help-To-Buy are non-existent in the main, other than Shared Ownership which is not well publicized and is misunderstood or unheard of with many potential homeowners. If this is a market where getting on the housing ladder is "not that difficult" I would hate to see Sir Howard's version of people struggling.