Navigating the housing market as a first-time buyer can be challenging. For most, a house purchase is the most expensive purchase you are likely to make in your lifetime. Successful budgeting and planning, understanding what is available in terms of mortgages, and choosing the right location are all key areas to consider.
Data from a recent housing report shows the average age of first-time buyers in the UK (outside of London) has increased from 30.6 years to 33.6 years.
This means the 25 – 34 age group are most likely to become first-time buyers, with almost half of those (49%) buying their first home in this age bracket. The report highlights more solo buyers than ever, with 40% now buying their first home individually.
The most common types of property for first time buyers are semi-detached (36%), closely followed by terraced houses (32%). 19% of buyers chose apartments and 13% detached houses.
When asked how confident first-time buyers were in the home-buying process, half (47%) stated that they didn’t feel confident, worryingly highlighting a lack of confidence in an area where making the right decisions is hugely important. When asked what first time buyers found the most challenging, one in five (21%) stated that understanding the different mortgage options was the most challenging part of the process.
This confidence is arguably more difficult to find in an ever-changing mortgage market and the report goes on to state that over 40% of buyers organise to talk to a mortgage broker to help them through the challenges of the mortgage process. Brokers deal with the changing variety of mortgage options available, day in day out. They take into account the whole of the mortgage market, bringing a specialist view that is difficult to match.
After a period of hesitation, the market is beginning to offer greater opportunities for those looking to get onto the housing ladder. For example, lenders are now offering more generous loan-to-income multiples for first-time buyers. With lender appetite broadening, and interest rate and regulatory changes impacting the market there are more opportunities becoming available to first time buyers and a mortgage advisor can help you understand all the suitable options.
How can we help?
One initial recommendation from us would be to secure your Agreement in Principle (AIP) early. While it isn’t a formal mortgage offer, it shows sellers that you’re a serious buyer and helps you understand what you can afford. Acquiring one isn’t necessarily straightforward. You’ll need to provide basic details about your income, outgoings and deposit, and you can usually expect to receive it within a few hours to a couple of days. An AIP is typically valid for 30 to 90 days.
Speak to us today and we will support you in your first house purchase and help you understand the variety of first-time buyer mortgages that are available for your circumstances.
Please contact us on 020 8154 7280
Sources:
https://www.barratthomes.co.uk/advice-and-inspiration/first-time-buyer-report/