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Unlocking opportunities for mortgage market growth and first-time buyers in 2024
Despite 2023 having some clear challenges for the advisory and lending community and our clients, 2024 has the potential to provide a far greater number of opportunities and a return to a market where activity levels have improved and so has income generation.
Where might business come from is a constant question being asked by all mortgage market stakeholders, and while it’s been clear that product transfer activity has been significant, there is an argument to be had that 2024 will be much more conducive to greater levels of purchasing and remortgaging.
That’s certainly the case for first-time buyers who, when coupled with house prices being subdued over the last 12 months, may find further opportunities to make a move onto the ladder this year.
This might well be one of the more potentially surprising features of the last 12-month period - the resilience of the first-time buyer sector and how, even with a number of notable obstacles in their way, an increasing number of first-timers were able to get on the ladder as the year progressed.
Not only were the number of mortgage advances for first-timers more than for home movers in every quarter since Q2 2021, but this number showed a marked increase in Q3 2023, up towards 80,000 – the best three-month period of the year.
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What we must also highlight with first-time buyer activity is the far greater array of options available to them, particularly when it comes to specialist mortgage products for those who can’t meet the requirements of the high-street but are still good credit risks.
There’s no doubting this type of borrower, and their varied needs and circumstances, can now be accommodated much more by lenders such as Foundation. Whether that is a first-time buyer with a lower credit score, or an unusual source of income, those who may have picked up some credit blips particularly through the various lockdowns, or those who have multiple incomes, they all have mortgage options.
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Then you have Professionals who can quality for higher income multiples because of their career choice, those who have a complex income setup potentially reliant on bonuses or commission at different points in the year and in a better rate environment – we are able to look individually at these cases and get them into a positive position with a positive lending decision delivering a positive outcome.
We know in the UK the deep-seated ambition many people have to own their own property, and it all has to start somewhere. With a greater number of products available – especially in the specialist sector – the more Foundation will be able to help those who want to fulfil this need.
*This article was originally published on BestAdvice
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