First-time buyers remain ambitious but unaware of specialist lending options: MAE London 

First-time buyers are the most ambitious group when it comes to property, but their ambitions are not backed by lending confidence, according to Together's James Briggs. 

Related topics:  Mortgages,  Specialist Lending
Rozi Jones
25th May 2022
James Briggs BDM at Together
"This represents an opportunity for everyone in the room - it’s very important to diversity your proposition and expand your opportunities."

In a seminar on post pandemic ambitions and opportunities at today's Mortgage Adviser Event in London, Briggs discussed how the Covid-19 pandemic has changed residential mortgage lending, and how advisers can position themselves for success and the best outcomes for their clients. 

Together launched a survey in December 2021 targeting self-employed and first-time buyer audiences to gather a deeper understanding of how ambitious the UK is when it comes to property ambitions and lending. The results revealed that the pandemic has made ambitions harder to achieve for many, forcing people to rethink their short-term goals. However, it showed that almost half of respondents do still have property ambitions for 2022.  

All groups share the same concerns when it comes to mortgage applications. On average, people think their application will be refused due to four main reasons:   

- Lack of deposit – 28%  
- Lack of usable income – 25%  
- Concerns around age – 22%  
- Concerns around credit – 21%  
 
Despite first-time buyers being the most ambitious property purchasers, almost half of first-time buyers and almost a third of self-employed people don’t know there are specialist lending options available to them.  
42% of self-employed people have heard of specialist lenders and would be prepared to borrow from them but 30% are not aware at all.  

The survey also revealed that most first-time buyers are worried that their income, deposit, age and credit score might get in the way of them achieving their property ambitions.  

25% of those with property ambitions for 2022 plan to use the Right to Buy scheme and 16% will be taking advantage of shared ownership.  

Self-employed borrowers were the most likely to have investment ambitions - the majority are looking to buy a property to rent out, renovate and sell on, or as a holiday let. 

29% of self-employed people set up their business in the last two years and 44% are unsure if their mortgage application would be accepted. Of those who think a lender may say no, 55% say it’s due to being self-employed while 35% think it’s because they don’t have a steady monthly income. 

Discussing the lack of awareness surrounding specialist options, James Briggs said: “This represents an opportunity for everyone in the room - it’s very important to diversity your proposition and expand your opportunities. There are specialist lenders to help with those homebuyer uncertainties.” 

For more information about Mortgage Adviser Event and the upcoming Manchester date, visit https://mortgageadviserevent.co.uk.  

More like this
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.