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What should brokers highlight to attract and retain younger homebuyers

Journalist: Jake Carter, Mortgage Introducer

ended 12. December 2023

Most younger homebuyers would make green improvements to the property that they would acquire if they had the finances to do so, research from Coventry for intermediaries has revealed.

How enticing have you seen green products to younger homebuyers? What benefits of green products do you highlight for your clients?

What do you usually highlight to attract and retain younger homebuyers? What trends are you seeing in what attracts these buyers?

8 responses from the Newspage community

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Ken James
Director at Contractor Mortgage Services
Younger borrowers are more conscious of the impact they are having on the world at large, but when it comes to buying a property their main focus is simple, can they get a mortgage at all? No incentives are available to drive them towards these products. whilst these Greener homes will be better-insulated savings on heating and the cost of running the home, it does not take away the fundamental issue which is the struggle younger buyers have. Raising deposits and earning sufficient levels of income to be able to buy. the green credentials I feel come later and once in the property they may make strides to improve the property. For me it feels like my recent car purchase, I would like to buy a 100% electric one but it's out of my price range, so I've compromised and bought a Hybrid, my next car I hope will be electric but again will I be able to afford it who knows?
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Jamie Alexander
Mortgage Director at Alexander Southwell Mortgages
Let's face it, mortgages aren't exactly the most exciting topic for young homebuyers. But, if we start talking their language, we can make the whole idea of owning a home feel a lot more doable and less like a distant dream.

Right now, mortgage brokers on social media are getting success. They're doing a way better job than the usual bank ads because they know how to chat in a way that clicks with younger folks. They make all that mortgage jargon easy to get and even kind of fun.
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David White
Chief Operations Officer at Simply Lending
I believe younger homebuyers certainly aspire to be greener however when they are faced with high rates, high property values and stretched affordability our experience tells us that the EPC rating of a property is low on their list of priorities when looking for a home and a mortgage to obtain it especially when you take into account that properties which are more energy efficient tend to also be more expensive.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
Products themselves just aren't sexy unfortunately so the only way for us to attract younger homebuyers is to talk to them in their own tone of voice so they know that homeownership may not be as far off a prospect as they may think.

The army of mortgage brokers on TikTok, Facebook and Instagram do a better job of this than any lender product and marketing team. Perhaps lenders might want to tap into that rather than waste budgets on content that no one will care about.
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Peter Stamford
Mortgage Expert at Stamford Home Finance
In my experience younger buyers are keen on being green, but high rates and property prices mean energy efficiency often takes a backseat. The mortgage products themselves are a nice idea but they reward the work that's already been done rather than incentivising the work that is intended, useless for a FTB.
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Adam Smith
Founder at Alfa Mortgages
Throughout the year, I've had just one client express interest in green mortgages, primarily drawn to the prospect of significantly lower rates. For the majority of younger buyers, however, the primary focus remains on the monthly repayment and overall affordability. Simply put, the bottom line for them is financial consciousness.
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Charles Breen
Founder at C B
The long term relationships, the proactive efforts to switch products to save them money, the advice and guidance esp when engaging the in dance of swords with estate agents and their merry little lies. We can save them thousands, not just on the purchase price but also other costs, be it inflated solicitors fees because the solicitors are giving the agents a kick back, or the savings created by putting the right protections in place at the right time ( and not paying the 30% increase in premiums for banks or building societies protections)
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Jamie Thompson
Mortgage Broker at Jamie Thompson Mortgages
Green products are hardly making an impact in my opinion. Two-hundred-and-fifty pounds cashback if it’s an EPC rating of A or B is insignificant on an average purchase price of £290,000.
Most consumers aren’t aware that some lenders offer marginally preferential mortgages for greener homes. Until there’s a significant difference why would they? When I inform them that they have qualified for a better product due to their home’s specific green credentials they seem pleased. When I reveal the pittance of difference had their home been less efficient the wind really seems to come out of their sails though.