Latest news with #First-TimeBuyerBoost
Business News Wales
13-06-2025
- Business
- Business News Wales
Why There's Still No Better Time to Buy For First-Time Buyers
Despite the economic challenges we've all been navigating, there is still no better time to buy for first-time buyers. That might sound surprising given the headlines we've seen about rising property prices and the cost of living, but the reality on the ground is more nuanced – and, for many, more hopeful. Yes, affordability remains an issue. And yes, buying a first home can feel like a daunting process. But my experience tells me that with the right advice and support, it's possible – and increasingly realistic – for many renters to take that step onto the ladder. I specialise in helping a wide range of clients, but first-time buyers have always been a big part of the work I do. We've certainly seen an uptick in that area lately – a 12% increase this year – and I think there are a few reasons why. One is the sharp rise in rental prices, which is making homeownership feel like a more viable, long-term investment for many people. Another is a shift in confidence from lenders. We're starting to see mortgage rates come down, with several major lenders now offering deals with interest rates beginning with a three. That alone brings a level of reassurance back into the market. But what matters most is how first-time buyers are supported through what is, for many, a complex and emotional journey. Buying a home – especially the first – isn't just a transaction. It's a life event. It's full of excitement, uncertainty and, at times, stress. That's why it's so important that advisors like me do more than just find the best rate. We need to be there throughout, offering clarity, confidence, and genuinely helpful advice. There is a lot of information out there, and while much of it is well-intentioned, it can also be confusing and sometimes misleading. That's where a good mortgage advisor comes in. We know the market, we know the lenders, and we know which products will actually work for someone's unique circumstances. That matters more than ever at a time when lenders are introducing more varied and flexible products to support different buyer profiles. One example is the First-Time Buyer Boost from Halifax, which can allow borrowing of up to 5.5 times income in certain cases. For some prospective homeowners, it's the deposit that's the sticking point. Again, there are options. Some lenders will consider cases where no deposit is available, provided the applicant has a track record of paying rent over a certain period. Others offer mortgages for as little as £5,000 down. These pathways aren't always widely known, which is why speaking to a whole-of-market mortgage advisor is so important. As an advisor, supporting a first-time buyer isn't just about that one transaction. It's the beginning of a relationship. Many of the people I've helped onto the property ladder have come back to me years later when they're ready to move, remortgage or protect their growing family. That lifetime client relationship is something I value greatly, and it's why I place so much importance on getting it right the first time. It's also where technology plays a big part in improving the experience. The systems we use, provided through the Cornerstone Network, allow us to work more efficiently, find solutions faster, and spend more time having the meaningful conversations that really help a client. It's not just about completing a fact-find; it's about understanding someone's ambitions, challenges and long-term goals. We also talk to our clients about protecting what matters most. Buying a home is often the moment when people first start to think seriously about life insurance, income protection or safeguarding their future. Helping them navigate that part of the journey is just as important as finding them the right mortgage deal. For anyone considering their first step into the property market, I would say this: start early, get advice, and don't assume you're on your own. There are more options out there than many people realise. And while the journey might feel complex at times, you don't have to do it alone. There's no better time to begin – and no better way than with a knowledgeable advisor who genuinely cares about the outcome. David Huckle talks about supporting first-time buyers in the Cornerstone Finance Group podcast episode Unlocking Doors for First-Time Buyers. Listen to the podcast here: Cornerstone: Podcast Series – Business News Wales
Business News Wales
12-06-2025
- Business
- Business News Wales
A Complex Market but Plenty of Support for First-Time Buyers
The headlines can paint a daunting picture. Last year, the average purchase price for a first-time buyer in the UK was more than £310,000. The average deposit was more than £60,000. And with the cost of living and interest rates where they are, it's no surprise that many aspiring buyers are feeling discouraged. But those same headlines don't tell the whole story. In 2024, the number of first-time buyers rose 20% compared to the previous year. More than half of all UK home purchases are made by first-time buyers – the highest share on record. So despite the challenges, demand is strong, and that's cause for optimism. There are options out there. Our job, both lenders and mortgage advisors, is to help people understand those options and support them through the process. Deposit remains a major hurdle, but there are now several solutions designed to help. At Halifax, we offer mortgages at 95% loan-to-value, with the support of a Mortgage Guarantee Scheme. That means the deposit doesn't need to be £60,000 – it could be more like £15,000 or £20,000, depending on the property. There are also cashback products that can ease the upfront cost and help with those first few months in a new home. Shared ownership is another good example. Buyers purchase a percentage of a home and pay rent on the rest, with the option to increase their share over time. This helps reduce the deposit needed, and it's an area where we're seeing a lot of activity. Affordability is the second big challenge, and this is where the market is evolving quickly. At Halifax, we've introduced the First-Time Buyer Boost to help more buyers meet affordability criteria. The UK Government has also updated affordability stress-testing guidance, and while that's still taking shape, it is prompting further change across the sector. Family support remains key for many buyers. Gifting a deposit – often from parents – is a longstanding option, but now we're seeing more intergenerational solutions. If the Bank of Mum and Dad were a lender, it would be the tenth largest in the UK. This tells us something important about how families are working together to meet deposit and affordability challenges. There are ways to formalise that support. Joint borrower, sole proprietor mortgages allow parents to contribute income without being named on the title. We're also seeing concessionary purchases, where buyers purchase from a landlord or family member at a discounted price, which can reduce or eliminate the deposit requirement altogether. And for some families, equity release or later-life lending may be a way to unlock the value in a property to support the next generation. This isn't suitable for everyone, and advice is essential, but it's another route that's helping people take their first step onto the property ladder. It's a complex landscape, and we don't expect first-time buyers to navigate it alone. Mortgage advisors play a crucial role here, and the earlier they engage with clients, the better. We want to help customers become mortgage-ready – even if that means starting conversations months or years before a purchase is made. The average age of a first-time buyer is now 33 – two years higher than a decade ago. But the aspiration to own a home is as strong as ever, and the support is there for those who seek it out. We take our responsibility seriously. At Halifax, we're committed to working closely with intermediaries to ensure they have the tools and knowledge to guide clients through what can be an overwhelming process. Whether it's new products, affordability updates or intergenerational lending solutions, we're here to help our partners support their clients every step of the way. There's no doubt that the market presents challenges. But the demand is real, and the solutions are evolving. We need to continue working together as an industry – lenders, advisors and brokers – to make homeownership a reality for the next generation of buyers. Gareth Gale talks about supporting first-time buyers in the Cornerstone Finance Group podcast, episodes three and four . Listen to the podcast here: Cornerstone: Podcast Series – Business News Wales
