Regional variations are stopping first-time consumers from stepping onto the property ladder with some areas of the UK presenting extra challenges than most for mortgages, analysis from Coventry for Intermediaries reveals.
The building society’s first-time purchaser analysis exhibits over two-fifths (41%) of first time consumers within the North East say they’re discovering it troublesome to safe mortgages – a stark distinction to the South West the place simply 18% discover it troublesome.
Mortgages
In the South East, the place home costs are over 20% larger than the nationwide common of £282,000, almost a 3rd (30%) of first-time consumers additionally reported that they’ve discovered it troublesome to get on the ladder.
Meanwhile within the capital almost 9 out of 10 (87%) first-time consumers mentioned that the present financial local weather had prompted them to delay their home buy – larger than another area.
Jonathan Stinton, Head of Intermediaries at Coventry for intermediaries, says: “Our research suggests that many first-time buyers are continuing to face difficulties securing mortgages, in some cases delaying their plans to step onto the ladder.
“The reasons behind these challenges are different from region to region, influenced by factors such as varying house prices, upfront costs, mortgage products and economic conditions that can impact affordability and financing options.”
“Wherever first time buyers are looking to step onto the ladder, brokers are the ones who can give valuable support and guidance.”
DIFFERENT CHALLENGES
He provides: “Understanding the different challenges buyers face in different parts of the country, and helping them to navigate the property market, will both help brokers to grow their client base, and ensure that borrowers are getting the best possible outcomes.”
The Neg revealed earlier this week how demand amongst first-time consumers for smaller houses helped to drive development in UK property costs within the early months of this yr.
Halifax revealed smaller houses had recorded the strongest will increase as first-time consumers battle larger mortgage prices and the cost-of-living, accounting for 53% of all houses purchased with a mortgage in 2023 – the best proportion since 1995.
