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Understanding the market as first-time buyers

If you a first-time buyer or know someone who is, click the below button see the services we offer.

We all know how difficult it can be to get on the property ladder and it’s no different for today’s first-time buyers. Whether you are an aspiring first-time buyer, or know someone who is we want to understand what it’s currently like for those in that situation. 

What are the challenges?

The deposit barrier is probably the biggest, followed by stretched affordability, depending on the location you are looking to buy in.

Average first-time buyer property prices are now £233,267, up by a significant 9.2% in the last year, according to the latest figures from HM Land Registry.

As aspiring homeowners continue to save their deposit, it can feel like rising property prices make it seem like the goal posts are even further away.

Some first-time buyers might think getting a mortgage is more difficult than other circumstances, but this necessarily isn’t the case.

Ways to make it easier

Thankfully, we’ve seen lenders return to the high LTV market in 2021 and there’s a much greater choice of 90% and 95% deals than in previous years.

Homeownership schemes, some government-backed and some privately run can give you a hefty leg up onto the ladder too. According to UK Finance, buyer assistance (from parents or homeownership schemes) is involved in around 40% of all first-time buyer purchases, so it’s something to consider when you first think about getting that mortgage.

Where lenders are concerned it can very on the best deals you are able to get. With most lenders you can get high LTV mortgages, first-time buyer products, professional mortgages and guarantor-style mortgages that all help first-time buyers get on the market.

The significant support available means that, despite the hurdles, first-time buyer business remains robust, accounting for about half of all purchase loans, according to UK Finance.

The first-time buyer mortgage market is forever changing. We need to really understand why, and that’s why regular research is conducted to find out exactly what you need and want when it comes the time of buying your first home.

What should a first-time buyer consider?

The housing market is ever changing as are first-time buyer habits, so it’s important to try and understand current common themes which could also be a consideration for when you search for your perfect home.

Location is key when it comes to buying your first property, so make sure you find somewhere that fits the needs of your day-to-day life. We found that many first-time buyers are now looking in more rural areas as their particular line of work might mean being in the office less frequently, so no need to be located in or around a city.

With more people now spending more time at home, this has led to more first-time buyers looking for properties with outdoor space more than anything else. This is now common across the whole market that fits the trend of more people now working from home permanently.

Using a broker or adviser as a first-time buyer was overwhelmingly positive – 87% said they had a good experience. We would recommend any new first-time buyers use our expert advisor assistance. We have brokers that specialise in this specific area, all you need to do is click here to find out more!

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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