First-time buyer numbers increased at a record rate of 35% last year, according to new analysis from Halifax.

According to this analysis, the total number of first-time buyers reached 409,370 in 2021, despite low affordability across many parts of the UK. Despite this surge in numbers, first-time home purchasers remained at around half of all home loans.

The Stamp Duty holiday was a factor in the increased availability of first-rung homes as others moved up the ladder.

Who are today’s first-time buyers?

According to the findings, published in Halifax’s First-Time Buyer Review 2021, the average buyer in 2021 was 32 years old and put down a £53,935 deposit on a first property costing £264,140.

The average age at which someone buys their first home is now over 30 in every UK region, up from 29 in 2011.

There are many factors that have contributed to the rise in the average first-time home purchaser age.  The biggest factors are the cost of homes and the need to save a significant deposit to get on the housing ladder. Other factors are changes in lifestyle with more people choosing to go on to higher education, go travelling or move around for work.

What are they looking for?

First-time buyers are changing their priorities in terms of their preferred location.

Since the pandemic, the change to working from home or hybrid working arrangements has meant that they are not necessarily tied to their office location in the same way they may have been before.  They can move out of city centres and further into suburbs as they need to be in the office fewer days a week.

They are looking for properties with a workspace separate to their living space as well as some outdoor space.

What challenges do they face?

First-time buyers still face enormous challenges to get on the property ladder.

The deposit barrier is probably the biggest, followed by stretched affordability, depending on the location.

Average first-time buyer property prices are now £233,267, up by a significant 9.2% in the last year, according to the latest figures from HM Land Registry.

As aspiring homeowners continue to save their deposit, it can feel like rising property prices move their goal ever further away.

The benefits of using a mortgage adviser

First-time home purchasers will benefit from specialist advice from a mortgage adviser.

Here are some of the many benefits:

Navigating the complex first-time buyer mortgage market

A mortgage adviser can help navigate the increasingly complex first-time buyer mortgage market and find a solution tailored to the needs of the first-time home purchaser.

Money saving in the long run

Independent mortgage advisers are impartial and are not tied to a particular provider. This means they have no incentive to recommend one lender over another, which helps ensure that the mortgage is not costing the first-time buyer excessive interest charges that could be avoided.

Independent mortgage advisers can find the most cost-effective mortgage deals that will save the first-time home purchaser money over the long term, which could be up to 40 years. Also, they usually have access to exclusive products that are not available from mainstream lenders.

Advice on every aspect of the mortgage process

The details and terms of mortgage deals can get complicated. Independent mortgage advisers can make the process much smoother and explain what everything means, breaking down the jargon.  They can also offer reassurance throughout the property purchasing process.

Saving you time with a hassle-free process

There’s no need to spend time understanding how to complete forms as an independent mortgage adviser will do this on your behalf, so it’s just a question of reading the documentation and signing.

The adviser does the legwork and prepares the case as well as liaising between the first-time buyer and the lender, the lender and the estate agent, and also the solicitor and the estate agent. Advisers can help push the process along and make everything much smoother.

An independent mortgage adviser understands lender criteria

Good mortgage advisers deal with different lenders on a day-to-day basis. They understand which lenders are more likely to accept applicants and what information they need to see to improve the buyers’ chances of their application being accepted.

Fully qualified and regulated

Independent mortgage advisers must have professional qualifications and they are regulated by the Financial Conduct Authority – either directly or as an appointed representative of a network. This means that the adviser has a regulatory responsibility to search for the most suitable product for their client’s needs.

At Beaufort Mortgages, we find the best mortgage rates for First Time Buyers, Home Movers, those looking to Remortgage and landlords requiring Buy To Let mortgages. Get in touch with Dan Godfrey, our independent mortgage adviser.