Breaking Down Barriers: Supporting First-Time Buyers in a Challenging Market

First-time buyers are struggling to get on the property ladder due to affordability challenges and rising interest rates. Lenders must innovate and find solutions to support these buyers in a challenging market.

First-Time Buyers Struggle to Get on the Property Ladder

The cost of living crisis and interest rate rises have made it increasingly difficult for first-time buyers to get on the property ladder. According to a recent report by the Building Societies Association (BSA), it’s more expensive for first-time buyers now than at any time in the last 70 years.

The Challenges of Affordability

The issue of affordability is a significant obstacle for first-time buyers. The cost of buying a home has increased, and many are struggling to secure a mortgage. The BSA report highlights that the number of first-time buyers in the UK last year was the lowest in 10 years, at 293,000.

“The number of first-time buyers is recognised as being closely related to the state of the mortgage market, housing market and then the wider economy – they’re intrinsically linked.” - BSA Report

The Role of Lenders in Supporting First-Time Buyers

Lenders have a crucial role to play in supporting first-time buyers. At Buckinghamshire Building Society, we understand that traditional routes to buying a home are not viable for everyone. That’s why we’ve launched our new joint borrower sole mortgage proposition, JBSP Deposit Lite. This innovative product combines the benefits of two existing products to help buyers take that first step onto the property ladder.

Image: First-time buyers struggling to get on the property ladder

The JBSP Deposit Lite mortgage makes it easier for parents to help their children buy a home. It comes with low to no deposit options, enabling borrowers to purchase their first property by leveraging the equity from parental property. Up to two parents can also join the borrower on the mortgage, significantly improving their borrowing potential, but without the need for them to be co-owners of the home.

Supporting First-Time Buyers in a Challenging Market

As lenders, we must recognise the difficulties that our customers are facing. We must listen to feedback from intermediaries about which criteria first-time buyers are struggling to meet and the factors that put them at risk of exclusion from the housing market. By doing so, we can design products that meet the needs of people trying to get a mortgage today.

Mortgage application process

At Buckinghamshire Building Society, we’re committed to innovating and finding solutions to the challenges faced by first-time buyers. Our JBSP Deposit Lite mortgage is just one example of how we’re working to make homeownership more accessible to those who need it most.