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Seven out of ten first-time buyers confident of getting on the property ladder – HSBC

by: Peter Taberner
  • 02/11/2023
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Seven out of ten first-time buyers confident of getting on the property ladder – HSBC
Those looking to get the keys to their first home are now more confident about their ability to buy compared to earlier this year, a high street lender bank has found.

Research from HSBC revealed that nearly seven out of ten people who are hoping to buy their first home in the next 12 months are now more certain of achieving that goal, compared to findings at the start of the year.

The reasons behind the buying decision were varied, with just over a fifth of first-time buyers saying that it is cheaper than renting.

Gaining more independence was the next most popular reason to buy with 20 per cent saying this was their primary motivation.

Financial security (17 per cent) and providing for their family (14 per cent) were the next two most popular reasons to purcahase their own home.

One in nine said the main reason using their first home as an investment.


Regional differences

The level of confidence varied by region.  First-times buyers in Wales (64 per cent) and Yorkshire and Humberside (63 per cent) were most confident of being able to afford a new home.

The levels dropped to 53 per cent in the North East and Northern Ireland and 52 per cent in the East Midlands


Finding a mortgage provider

Using an adviser was the most popular way to receive information about the mortgage market, with 41 per cent taking the broker route. Just under a third (30 per cent) went directly to a mortgage provider website, while 28 per cent used comparison sites.

When it came to picking the lender of choice, cost was the number one driver (32 per cent). Next came a recommendation from a broker or adviser (31 per cent), while 26 per cent opted for a brand that had gained their trust.

Just over a fifth said that chose a lender because it was their existing bank or building society.

A recommendation from family or friend was the least most popular reason for choosing a provider with just 11 per cent taking this option.


‘Shift in attitude is reassuring’

Andrew Matson,  the head of mortgages at HSBC UK said: “It’s encouraging to see more optimism amongst first-time buyers.

“The first half of this year has been challenging, but the shift in attitudes is reassuring and highlights the resilience of the housing market.

“While we don’t have a crystal ball to see what the future holds, it is pleasing to see the positive sentiment running throughout our research and we will continue to lean in to help support our customers.”

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