Aspiring first time buyers have more options than ever to realise their home buying dreams, but with that choice comes confusion, so advice is essential.
If you’re hoping to buy your first home, you might be disheartened by the way the property market has defied expectations during the pandemic.
House prices have soared, which is good news if you already own your own place, but not if you’re trying to get on the ladder. Average first time buyer property prices are now £214,237, up 7.7% in the last year*.
It’s a seller’s market and, for those saving for a deposit, the goalposts seem to have moved even further away.
Despite this, many first time buyers are still aspiring to find a way onto the property ladder. But many need professional mortgage advice to help them reach their goals.
Backing first time buyers
This year, we’ve seen mortgage lenders return to the low deposit mortgage market with a large rise in products available up to 95% of the property’s value.
That means you only need to find a 5% deposit, an option that virtually disappeared in 2020, so the return of these products brings new opportunity to many.
There’s also a wide range of homebuying schemes available to help first time buyers, from Help to Buy: equity loan, to Shared Ownership and the First Homes Scheme. Alongside this, there is stamp duty relief and discounts depending on property value, which help keep overall costs of buying down.
At Aldermore, we want to support first time buyers and that means listening to you and understanding your needs. Then making sure we design our products and service around you.
We know that saving a deposit is one of the biggest barriers to buying, which is why we relaunched our mortgages for those with just a 5% deposit earlier this year.
But we also recognise that it’s not just saving the deposit that makes it a challenge to get on the ladder.
High street mortgage lenders have strict lending criteria that often exclude people who don’t tick all the right boxes, such as those with unusual income streams or who’ve experienced a credit event.
We understand the financial circumstances of first time buyers is more diverse than ever, so, if you’re a first time buyer looking to purchase with a 5% deposit and you’ve experienced credit events in the past, there are lenders that can help.
But it’s not always easy to find them and it’s hard to know which will best suit your needs, which is where good advice comes in.
Mortgage brokers can provide the expert guidance to help you find the right route to your first home. Here’s how:
First, they can help you to get mortgage-ready by explaining what you need to do to improve your finances
Then they’ll look carefully at your individual circumstances and find the right deal for you from across the market
They also have access to specialist lenders that don’t deal directly with the public, but could have just the product you need
Even better, they help you with the form filling and liaise with the lender, solicitor and estate agent on your behalf throughout the process, chasing where necessary
Plus, the best brokers continue to look after your needs after you’ve moved into your home, getting in touch if they can save you money on your mortgage payments and can provide advice on things like contents insurance.
Finding your first home can be a daunting experience.
While it’s great that aspiring homeowners have so many options – from 95% LTV mortgages to Help to Buy: equity loan – it can be confusing.
Aldermore believes that first time buyers deserve expert guidance to help you find the right route to your first home. And brokers are best placed to give it.
We know it’s a challenge to buy a home. That’s why we’ll keep listening to you and developing our mortgages to help you meet your homebuying goals.
To Find out more, ask your broker about Aldemore mortgages or visit aldermore.co.uk/mortgages to learn more about us.
*Latest Government UK House Price Index summary: July 2021: https://www.gov.uk/government/statistics/uk-house-price-index-summary-july-2021/uk-house-price-index-summary-july-2021