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Number of FTB mortgages declining

Journalist: Jake Carter, Mortgage Introducer

ended 01. August 2023

The number of first-time buyer mortgage products has fallen by a quarter since the end of Q1 2023, the latest research from estate and lettings agent Barrows and Forrester has revealed.

How brokers are supporting customers currently? What advice are you giving customers? 

Is there any reason to get on the property ladder now if you are not incredibly wealthy? Is it better to sit tight and wait?

What would you like to see done to stimulate the FTB market?

What advice are you giving FTBs?

5 responses from the Newspage community

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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
FTB enquiries have reduced into the 3rd Quarter Of this year, due to the volatile rate increases experienced, which has affected affordability for many clients, with reductions in the amount they could borrow compared to say 6m ago. Also, price reductions are apparent in large town and city areas, which has affected FTB offer activity, as the consensus seems to be that house prices will reduce further. FTB that are living with parents/family appear to be sitting this out, however, renters are keen to move, but hoping rates will reduce, before taking the plunge. Also the quality of properties coming to market, in some cases many Buy To Let properties that are now becoming available to buy as Residential Property, are not quite the standard of property that FTB are looking for, and many are requiring a lot of work, to be "home ready" which is leading to in some areas, many properties not being sold. FTB are taking their time it seems, and treading carefully.
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Mike Staton
Director at Staton Mortgages
A lot of first-time buyers are being priced out of the market for affordability reasons. I also think there is a deeper reason for this too, The Instagram Generation want a show home to post wonderful pictures onto social media as they live a champagne lifestyle on a lemonade budget, and a lot are turning their noses up at cheaper properties. Gone are the days of young buyers doing what we used to do, buying a cheaper house in a rundown area to get on the ladder, instead, wanting the home of their dreams at the first attempt.

First-time buyers need to be realistic, a £400 monthly charge for the Audi A1 they have along with their £80 monthly iPhone bill isn't going to stack up on a lenders calculator on a £23k a year salary, so whilst I hear people complaining that lender, BOE and the government aren't doing enough to help this sector of the market, a big portion of these applicants need to get a grip of reality and realize getting the home of your dream takes time and effort
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Chris Schutrups
Founder at The Mortgage Hut / William James Wealth Management
In a time of uncertainty related to interest rates people are worried about where things go and what is next.

The generation above most first-time buyers constantly reminds them of rates being at 15% and how life was back then.

As with everything, people's expectations on price will adjust, the new norm will settle in and we will see a normal market resume.

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Rhys Schofield
Brand Director at Peak Mortgages and Protection
We don't really seem to be seeing this trend ourselves. With a dearth of rental options and those that are there skyrocketing in price, homeownership is preferable for many. There are great ways to get onto the ladder for first time buyers even without deposits and if we keep shouting about that on social media, clients continue to find their way to us.
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Gary Bush
Financial Adviser at MortgageShop.com
The only good thing that has come out of the mortgage rate crisis is that it has seen a lessening, in most areas of the UK, of the queue of people all chasing the same decent properties. This is helping First Time Buyers to grab those chances to finally get on the ladder - we have seen through Brexit, Covid, the Ukraine War, and now Inflation buyers delaying their first purchases. With fixed interest rates now on the fall and low deposit mortgages available still it would probably be sensible to make the leap now before the property market reheats.