Now, more barriers threaten to stand in the way of prospective homeowners’ dreams amid the UK’s post-pandemic economic recovery. Considering our cost of living crisis – alongside rising interest rates – the guidance of brokers is pivotal for first-time buyers as they navigate a long and winding road.
Slippery rungs on the property ladder for first-timers
After lockdown restrictions eased last year, we began to see the revival of the first-time buyer market, with the government’s mortgage guarantee scheme acting as a catalyst to the reintroduction of high loan-to-value (LTV) products.
However, there’s now a fresh wave of challenges, as we’ve seen prices soar to new heights at a time when the cost of living crisis places extra strain on household finances. An already complicated process is now even more difficult to navigate.
Our research has found more than half (58 per cent) of first-time buyers find it confusing, while seven out of 10 (72 per cent) prospective first-time buyers say they’ve been negatively impacted by the rise in living costs. Interest rates have likewise risen across the market, resulting in a rush to lock in rates that are often not available for long and increased repayments for borrowers throughout their mortgage terms.
Brokers are a boon to new buyers
Many prospective first-time buyers just aren’t aware of how brokers can help to alleviate the stress of homebuying.
Our research found that over a third of prospective buyers (38 per cent) don’t anticipate consulting a broker. A great shame, especially when those who have used a broker reported an overwhelmingly positive experience (91 per cent).
The homebuying journey is time-consuming and brokers are brilliant at streamlining this process, taking the headache out of furiously searching for the best mortgage deals, completing all the paperwork and handling applications with lenders. Our research found the most useful benefit of using brokers – according to more than four out of 10 new buyers – was helping them have a realistic understanding of what they could afford (43 per cent). They also benefitted from help in finding the most appropriate mortgage for them (40 per cent).
Our polling offers clear proof of what we already knew here at Aldermore: the undeniable benefits of using a broker.
They’re loyal to their customers, not lenders, ensuring whole of market advice and the best deal available. When combined with brokers’ exceptional knowledge of the mortgage market, as well as their ability to understand wider elements of a customer’s financial circumstances, the advantages are unparalleled.
Brokers relieve the pain of the process
The property market is ever-changing and increasingly complex, something that many of us in the industry can attest to. That first step on the ladder is widely acknowledged as one of the biggest stresses one can expect to encounter in their entire life.
By consulting a broker, prospective buyers ensure this process is more straightforward and less stressful, making their first homebuying experience something to remember – for all the right reasons.
