How to mobilise more first and second-time home buyers

It’s impossible to talk about the UK housing market without referring to the current political climate. It’s fair to say that market uncertainty remains one of the sticking points for many people looking to purchase property for the first-time, take a step up the property ladder or even downsize.

On the flip side, homeownership aspirations do not appear to have faded and the need to move for personal, family, employment or school catchment reasons are still evident for many homeowners. While fear of redundancy in a recession is holding the property market stagnant in some places, many buyers are looking to taking advantage of low purchase prices.

Borrowers who need a helping hand? They're welcome under our roof!

Which leads to the question - how can we mobilise more first and second-time buyers?

Average interest rates at 75% LTV have continued to fall, with 2 year rates down to 1.56%, whereas there has been an increase for 95% LTV borrowers up from 2.95% to 2.97%, according to Bank of England figures. The rate differential has therefore edged up to 1.41% from 1.3% in Q2. This was described as a ‘double-whammy’ for low-deposit borrowers who appear to have been hit far more by the withdrawal of a number of lenders during the course of 2019 than others.

Try our affordability calculator

A greater variety of lenders need to be active at the higher loan to value bands – within responsible lending boundaries – in order to generate more options for buyers, especially for those who may sit just outside the strict lending boundaries of high street or mainstream lenders. Maximum loan sizes are also an issue for those higher up the property ladder.

Thankfully, more and more specialist lenders such as Foundation Home Loans are stepping up to the plate to help borrowers who fall just shy of mainstream mortgage choices, for example by opening up their rates to 90% LTV. So, if you would to know more about how we can better support your homebuyer clients who might not quite fit mainstream lending requirements, then why not contact us today to find out more.

Speak to your BDM

More from us


Our quarterly survey of 883 landlords for Q3 2019 (via BVA BDRC) revealed that the rental yields for their HMOs, at 6.5% per year on average, far outshone the average rental yield for all property types of 5.6%.

In the press

The first Supper Club of 2019 took us to Manchester where we locked our guests inside the vault of a former bank until they had broken down the mortgage industry brick by brick.

Our news

We have introduced a brand new remortgage only buy to let product, available to individuals and limited companies.