Episode 1 | First-time buyer mortgages

Affordability, low deposits and advice for brokers

What does the future of first-time buyer lending look like?

In the first episode of our Powered by Partnership podcast, Francesco Di Pietro is joined by Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association, and Ben Riley, Director at First Mortgage.

Together, they explore the challenges facing first-time buyers, the options available across the market and the role brokers play in helping more people achieve home ownership. Topics include low-deposit mortgages, affordability, longer mortgage terms and the importance of early advice.

Download Episode 1 transcript

Closing the awareness gap

One of the biggest barriers facing first-time buyers is not always affordability or deposit size. Sometimes it's a lack of awareness about what options are available.

During the discussion, the guests highlight research from Building Societies Association showing that 47% of aspiring buyers have never spoken to a lender or broker. As a result, some assume home ownership is out of reach without understanding the products and support that may already be available to them.

For brokers, this presents an opportunity to start conversations earlier and help clients understand what is possible before they begin house hunting.

More routes onto the property ladder

The mortgage market continues to evolve to help more people buy their first home.

The episode explores how lenders are responding with:

• Longer mortgage terms to improve affordability.
• Higher loan-to-value products.
• More flexible approaches to affordability assessments.
• Low-deposit mortgage options. 

For clients with smaller deposits, propositions such as First Step can provide another route to home ownership, with borrowing available up to 98% LTV and a minimum non-gifted deposit of £5,000.

As discussed throughout the episode, there is rarely a one-size-fits-all solution. Understanding the client's circumstances and finding the right option remains key.

Why advice matters

Buying a first home is one of the biggest financial commitments a client will make.

The guests discuss how brokers add value by helping clients:

• Understand what they may be able to borrow.
• Prepare for a future mortgage application.
• Assess affordability.
• Understand the long-term impact of their mortgage choices.
• Navigate changing circumstances throughout their homeownership journey. 

The conversation also looks at the balance between technology and human expertise. While digital tools continue to improve the mortgage journey, understanding the person behind the application remains just as important.

Key takeaways

More mortgage options are available for first-time buyers

Longer mortgage terms, higher LTV lending and evolving affordability approaches are creating more opportunities for first-time buyers to access home ownership. 

Awareness of first-time buyer mortgage options remains a challenge

Many aspiring buyers are unaware of the options available to them. Early conversations with a broker can help clients understand what may be possible and identify any steps needed to become mortgage ready.

Good mortgage advice can support better outcomes

For first-time buyers, a broker's role can go beyond finding a mortgage. It includes helping clients understand their options, their commitments and the decisions that support long-term financial wellbeing.