Over the last few years, first time buyers (FTBs) have faced several significant obstacles when approaching the housing market. Affordability challenges and escalating house prices have made it increasingly difficult for aspiring FTBs to buy their first home. Meanwhile, the complexities of understanding interest rates, loan and deal terms, and eligibility criteria can take the excitement out of homebuying and leave borrowers feeling overwhelmed.
Research from The First Time Buyer Economy report reveals that over a third (36%) of FTBs feel as though they need more guidance on the homebuying process, demonstrating the crucial role brokers play in guiding their clients through the unfamiliar stages. Our research has also shown that 92% of all FTBs used a broker when buying a house, showing how they can provide expert guidance and reassurance to transform what at face value seems like a daunting process, into a positive experience for FTBs.
Getting onto the property ladder
Recent market turbulence has made the prospect of entering the property market appear more challenging. A study by Propertyable found that around 77% of non-homeowners doubt they will ever be able to purchase a home, with over half (55%) of aspiring or current first time buyers admitting they lack the knowledge to start the process.
Brokers play a key role in making the journey to homeownership as smooth as possible for their clients. A key part of this is guiding borrowers through any government and lender support schemes that can help them buy their first home. For soon-to-be homeowners navigating the homebuying process, this advice can provide assurance and leave them feeling that they’re in capable hands.
Dispelling common misconceptions and identifying solutions
Understanding the most common misconceptions about the costs and process of buying a home is crucial to alleviating fears and reviving the buzz of buying. Our research has shown that 77% of FTBs are aware of legal fees, but less than half (49%) are aware of moving and valuation fees.
Brokers can bridge the information gap by taking clients through the various upfront costs and fees associated with purchasing a home, ensuring that their clients are financially prepared.
40% of FTBs we surveyed also stated they need more information about the mortgage application process. Brokers can help ease these concerns and build client confidence by developing a comprehensive financial plan tailored to each client’s needs and sharing positive case studies and testimonials of previous borrowers they’ve helped. This approach ensures clients feel well-supported and reassured throughout their homebuying journey.
In today’s FTB market, products such as high loan-to-value and low-deposit mortgages also provide a route for many aspiring homeowners to step onto the property ladder. Brokers can act as an ally to their clients by guiding them towards the most suitable products and tailoring the solutions they put forward based on each client’s unique financial situation.
Finally, for forward-thinking brokers it’s crucial to maintain contact with clients who have settled into their new homes, supporting them throughout this new chapter in their lives and preparing them for a future product transfer or remortgage before their current deal expires. Building lasting relationships in this way will put brokers in good stead to benefit from repeat business in the future.
Jonathan Stinton is head of intermediary relationships at Coventry Building Society
