Reigniting the buzz of buying a home
September 2024
In recent years, first time buyers (FTBs) have faced significant challenges. The widening affordability gap and rising property prices1 have left many struggling to step onto the property ladder.
The process of applying for a mortgage can also be overwhelming. The intricacies involved – such as understanding interest rates, loan and deal terms, as well as eligibility criteria – often leave new borrowers feeling unprepared and unsure how to proceed2.
Despite these challenges, mortgage brokers play a crucial role in reigniting the buzz of buying. Providing reassurance and guidance to FTBs can transform what might seem like a daunting process into a positive and empowering experience.
Navigating recent market conditions
Recent turbulence within the market has made the prospect of stepping onto the property ladder seem more difficult. In a recent study from Propertyable, approximately 77% of non-property owners expressed doubt about ever being able to buy a home, with over half (55%) of aspiring or existing FTBs admitting they lack the knowledge to begin the process of getting onto the property ladder3.
The report also noted that 36% of FTBs need more guidance on the homebuying process4, proving that brokers are more important than ever in advising and guiding their clients through the latest government and lender support schemes. In times of change, this can strengthen the broker-client relationship, leaving clients feeling assured and confident that they are in the right hands.
Addressing misconceptions
Addressing common misconceptions about costs and the buying process is key to alleviating fears and reigniting the excitement of buying. Our research on The First Time Buyer Economy shows that while 77% of FTBs are aware of legal fees, under half (49%) are informed about moving and valuation fees5.
Brokers can bridge this information gap by discussing the upfront costs and fees associated with buying a home, so clients feel they’re financially prepared.
Our data shows 40% of FTBs need more information about applying for a mortgage too. Alongside helping clients build a financial plan, sharing positive client-case studies and testimonials can help ease any worries FTBs may have, ensuring they are well-informed and feel supported throughout their homebuying journey.
In today’s FTB market, products such as high LTV and low deposit mortgages, can make stepping onto the ladder more accessible to aspiring homeowners. Helping clients identify the most suitable products and tailoring support to their unique circumstances will give clients the certainty they are receiving a bespoke service.
Brokers can help reignite the buzz
Supporting soon-to-be homeowners with navigating the mortgage market, the costs associated with buying and advising them on the best products for them will help to give them the reassurance and confidence they need to buy their first home. Creating a personalised experience and sharing positive client-case studies and testimonials can help to reignite the buzz of buying while also building trust with new clients, helping to retain them for future business.
Once a client has settled into their new property, it’s equally important to stay in touch before the end of their next deal. Clients will still need the support of a broker to navigate the product transfer or remortgaging market, so building lasting relationships with clients could creating a business pipeline for the future.
- https://www.forbes.com/uk/advisor/personal-finance/2024/08/19/house-prices-updates/
- https://propertyable.co.uk/first-time-buyer-statistics-uk/
- https://propertyable.co.uk/first-time-buyer-statistics-uk/
- https://www.coventryforintermediaries.co.uk/content/dam/cbs/intermediaries/pdfs/knowledge-centre/first-time-buyer-economy.pdf
- https://www.coventryforintermediaries.co.uk/content/dam/cbs/intermediaries/pdfs/knowledge-centre/first-time-buyer-economy.pdf
