The Aldermore First Time Buyer Index revealed that 40% of hopeful buyers were looking for higher-paying jobs, while 22% were negotiating pay rises. Some 21% were considering a career change to get onto the property ladder faster.
The survey found that a fifth of respondents had changed jobs for a bigger bonus, while 17% delayed a job move to strengthen their mortgage application. Further, 13% have gone into or thought about a career they do not like to improve their chances of buying a home.
Rising costs and misjudged expectations
According to the survey, more than a third of prospective first-time buyers need an average annual salary boost of £21,646 to afford a home.
Aldermore found that respondents were mistaken about how much monthly mortgage costs would be, as they said the most they were willing to spend was 27% of their income. However, after tax, first-time buyers with a mortgage spend nearly 31% of their salary on their mortgage payments, rising to 41% for buyers aged 18-24 and 37% for those living near London.
However, respondents expect to do more to become a homeowner, with 64% saving more than they initially planned for a deposit. Hopeful buyers said they would need to save £48,168 for a deposit.
Further, respondents expect to buy a home later in life, with many believing they will become homeowners at 37. This is six years later than recent first-time buyers, who bought at an average age of 31.
Half of respondents said they would spend five years or longer saving to buy a home, while one in 20 said it would take more than a decade.
Jon Cooper, director of mortgages at Aldermore, said: “The UK’s first-time buyers aren’t just tightening their belts, they’re rethinking their entire career paths to try and get on the ladder. From chasing pay rises to moving into different roles, prospective homebuyers are reshaping their working lives to secure a home of their own. Their ambition is as strong as ever, but the sacrifices they’re making are more significant.
“For anyone considering a career change to boost their income, it’s important to take a measured approach, looking at long-term earning potential, retraining options and if a new role genuinely aligns with your skills. Before making a major move, talk to your current employer about progression, responsibilities and a pay rise that could unlock opportunities without the upheaval of starting again.”
