In a panel debate on Mortgage Solutions, director of Nest Financial Services, Abi Greenhalgh, Dina Bhudia, CEO at P2M Group and Jonathan Stinton, head of intermediary relations at Coventry for Intermediaries discussed the fact advisers are critical to the UK remaining a nation of homeowners. 

Abi Greenhalgh, director at mortgage adviser Nest said the demographic of FTBs splits into two camps: those still at home with parents so, those oblivious to the rising cost of living and those renting but seeing bills already ticking up. 

“Being further north a first-time buyer doesn’t have to use all their affordability to get on the housing ladder. There’s still ‘fat’ available so they don’t have to stretch themselves all the way, ” she added. 

North London-based mortgage adviser Bhudia said the opposite’s true in the capital where prices are higher and entry levels to purchase are higher still. Many London buyers may have been forced to take a step back or even talk to parents ahead of taking the next step, she added. 

Stinton said without first-time buyers the market itself would stall. 

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“Our first-time buyer economy report confirmed its not just the buying costs, the follow on purchase costs see FTBs spend a further £10,000 on furniture, renovations and so on, which is eight per cent above normal expenditure levels,” he said. 

Stinton said Coventry Building Society has always had a focus on first-time buyers whether through best buy savings rates, cashback products or offering 95 per cent loan to values (LTVs). 

“We haven’t been so vocal about that but we will be going forward,” said Stinton. 

 

Watch the video [7:23] hosted by Victoria Hartley, contributing editor at Mortgage Solutions, featuring Jonathan Stinton, head of intermediary relations at Coventry for Intermediaries, Dina Bhudia, CEO at P2M Group and Abi Greenhalgh, director of Nest Financial Services.