"First-time buyers may not necessarily be factoring in support from brokers early on in their home buying journey"
Just 28% of potential first-time buyers plan to finance their property with a mortgage arranged by a broker, according to a survey by Yorkshire Building Society.
The research found that aspiring first-time buyers are underestimating the importance of a broker when they start their house-hunt.
However, of those who have purchased their first property within the last 12 months, almost half (47%) said they eventually turned to a broker for help with their mortgage.
Findings from the report also indicate almost a third (32%) of potential first-time homeowners would aim for a detached house as their first property and nearly half (49%) would consider a semi-detached house. Less than a quarter (24%) would be happy to settle for a studio or flat.
The findings also revealed how important purchasing a first home is to potential borrowers, with nearly two in five (39%) saying it is more important to them than any other life event, including getting married or having children.
Jeremy Duncombe, director of intermediary distribution at Accord Mortgages, said: “Buying a house is one of the biggest financial commitments someone can make in life so it’s no surprise that we see a shift in first-time borrowers turning to a broker for help in taking that important first step on to the property ladder.
“It does however highlight that first-time buyers may not necessarily be factoring in support from brokers early on in their home buying journey, perhaps because they’re unaware of how intermediaries can help. This shows there is still much opportunity for brokers to promote their services to help guide aspiring buyers to a mortgage best suited to their needs, at a potentially overwhelming time of their life.
“Our latest First-Time Buyers Report offers an insight into the world of first-time buyers and could help give brokers a better understanding of the challenges they face for example, or what they’re looking for in a property or mortgage which could help brokers when they are speaking to clients just starting out.
“From a customer point of view, it shows that an earlier conversation with a mortgage broker could help prospective first-time buyers consider their options and understand the possibilities sooner in the process.”