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Reaching the first time buyers who feel home ownership is ‘impossible’
It’s testament to the UK’s continued appetite for homeownership, government intervention and sustained commitment from lenders that we're in this quite remarkable position at the end of 2020.
Despite the positive position of having seen such a huge number of mortgage offers issued and sales completed over the second half of this year, it hasn’t all been plain sailing for all. Research from Trussle outlined that almost two thirds (65%) of first-time buyers feel it is ‘impossible’ to get onto the property ladder, with 62% opting to save for another year or more.
The survey of 2,000 first-time buyers also revealed that 72% were in a position to look for a home within the next two years, but 44% of respondents felt confused by the changing deposit requirements and lender criteria. Over three quarters (76%) of first-time buyers feel worried, confused and angered at how COVID-19 has affected their home ownership aspirations.
These fears are understandable in what remains an uncertain economic climate and highlight the importance and value attached to the intermediary advice process. But what does ‘impossible’ mean in this context? Does this mean that such borrowers don’t believe that they have a big enough deposit to finance a property purchase? Does it mean that they don’t believe they have access to borrowing because of an historic or recent credit blip – such as a late payment on a credit card, mail order goods, telecommunications, utilities or unsecured loan arrears? Are they self-employed? Are they currently on furlough? Do they have complex income streams which they believe may be restrictive?
These are all questions that any good, professional adviser will ask. The same adviser will often be able to navigate a way through these issues and service these needs by securing a responsible and competitive lending solution. A wide range of specialist FTB products are available which can meet an array of borrowing needs. Many of these are designed to help reduce upfront costs for those borrowers who may be struggling to raise a deposit. And specialist lenders will continue to lead the way in helping to overcome some ‘impossible’ issues which potential borrowers may currently feel they are facing.
