The Dream of Owning a Home: A Fading Reality for First-Time Buyers?

The dream of owning a home seems to be fading for potential first-time buyers due to the affordability crunch. A recent Barclays survey revealed that only 22 percent of people aged between 18 and 34 believe that owning a home is a feasible goal. Meanwhile, Santander’s customer data from Q1 2024 shows that one in five people taking their first step onto the property ladder are over 40 years old.

First-time buyers are facing an uphill battle in the current property market.

The Challenges of Saving for a Deposit

In an indication that more people are starting families before becoming homeowners, Santander found that one in five first-time buyers in 2023 had at least one dependent, a significant increase from 10 percent in 2009. Mortgage experts advise how first-time buyers can ‘get ahead’ in the tough property market. ‘Nothing seems to get easier for first-time buyers and the twin challenges of deposit and affordability remain. House prices have remained stubbornly high despite a slower market, which means saving a deposit and being able to borrow enough is tough.’

House prices have remained high, making it difficult for first-time buyers to save for a deposit.

Mortgage Schemes for First-Time Buyers

There are useful mortgage schemes available for first-time buyers. Parental contributions remain crucial for many first-time buyers, a fact that hasn’t escaped lenders’ notice. Barclays, for example, has introduced the family springboard mortgage, allowing for 100 percent borrowing with the support of a family member or friend’s cash as security. This money is placed into a savings account linked to the mortgage and can be returned later, adhering to specific terms and conditions.

The family springboard mortgage allows for 100 percent borrowing with the support of a family member or friend’s cash as security.

The Importance of Credit Score

Richard Donnell, executive director at Zoopla, advises prospective first-time buyers to concentrate on identifying areas where they can obtain better value for their money. He suggests checking your credit score with all of the main ratings providers, to make sure you’re in the best possible position to get a mortgage. Prospective buyers might also want to consider using a service such as Experian Boost, which lets users share extra information about their financial habits which, Donnell says, may help to improve their credit score.

A good credit score is essential for getting a mortgage.

Conclusion

The dream of owning a home may seem out of reach for many first-time buyers, but with the right mortgage schemes and a good credit score, it is still achievable. Prospective buyers should concentrate on identifying areas where they can obtain better value for their money and consider seeking advice from local estate agents. With the right approach, first-time buyers can still get ahead in the tough property market.

First-time buyers can still achieve their dream of owning a home with the right approach.