Research from Coventry Building Society in partnership with the Centre for Economics and Business Research showed that 90 per cent of the youngest demographic, aged 18 to 24, used a broker.
However, only a third of them said they used them specifically for guidance and information when buying their first home.
The lender said that this was an opportunity for brokers to step in and support younger clients during the process, with 40 per cent of first-time buyers surveyed saying they needed more help and information on applying for a mortgage.
A further 36 per cent said they wanted more guidance on the contracts and costs of buying a home.
A third of first-time buyers said they had found it difficult to secure a mortgage, indicating that brokers can play a “critical role” helping these buyers onto the ladder, Coventry Building Society added.
Almost 96 per cent of first-time buyers who used a broker said they played an important role in their homebuying experience.
Coventry: ‘Advice gap for first-time buyers’
Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries said: “Buying a home is an exciting milestone for first-time buyers, and it’s only natural that they would lean on friends and family for advice, as in many cases they would have already been through the homebuying process themselves.
“However, our research shows there is an advice gap between younger first-time buyers who need extra support and guidance on the fundamentals of buying and who they are relying on to provide this level of support.”
He continued: “Brokers should be the go-to source of advice in the mortgage industry and can guide new buyers through the current market and the different stages of buying a home. For younger people who are finding it more challenging in this economic climate, brokers are in the perfect position to help these borrowers find a mortgage deal that could enable them to take their first step onto the ladder.
“For brokers, these buyers also represent an excellent opportunity to build up a new base of future clients by providing them with tailored advice. By positioning themselves as market experts, brokers could turn today’s first-time buyers into repeat business for the years to come.”
