Challenges for First Time Buyers
08 August 2018
First Time Buyers are facing unprecedented barriers when it comes to making the first step onto the property market and Marsden Building Society believes that lenders have to play their part to influence an increased level of opportunities to resolve the problem that these clients are facing.
What are the key issues first time buyers are facing?
There is an increase in ‘generation rent’ where there’s a growing number of young people living at home or struggling to pay expensive rent whilst saving to get a place of their own. Tackling monthly rental income as well as having enough to put away to save for a deposit is meaning that customers are taking a long time to build their initial deposit up. Alongside this, research from HM Land Registry sees rising property prices reaching an average across the UK of £218,255 meaning your average 5% deposit is nearer £10,912 and is proving to be a struggle to raise. Unsurprisingly, figures from the CML suggest that by 2020 only a quarter of 30-year olds will own their own home.
Heather Crinion, General Manager (Operations) at Marsden Building Society said,
“First Time Buyers making their first step onto the property ladder is something we all need to support with which is why we developed our Family Step mortgage. Our mortgage allows the Bank of Mum and Dad to support their children without having to gift their deposit but instead putting a charge on savings or property which will be released in the future making it a win- win for supporters and borrowers.”
Danny Belton, Head of Lender Relationships at Legal and General Mortgage Club said:
“Marsden Building Society launched their Family Step range in early July and demand from our brokers has been really promising. Our intermediaries need innovative mortgage solutions to support first time buyers onto the property ladder, and the Family Step range is a great example of this.”
“With a growing first time buyer market, one of the challenges is increasing awareness to clients and their families who struggle to save for a deposit. However, there are options out there, and brokers play a crucial role in helping clients navigate through these options; saving money in the process and making that step onto the ladder sooner rather than later.”
