In 2023, nearly two-thirds (64%) of first-time buyers relied on mortgage brokers to purchase their first home, up from just 36% in 2022, according to Aldermore’s First-Time Buyer Index. This significant rise underscores the growing importance of brokers as buyers face affordability challenges and stricter lending requirements in today’s housing market.
The Value of Brokers in a Complex Market
The report, based on a survey of 2,500 first-time buyers, found that mortgage brokers are playing an essential role in simplifying the homebuying process. A remarkable 90% of first-time buyers who used a broker reported a positive experience. Key benefits included:
Clear explanations of the application process (42%)
Assistance with paperwork (42%)
Support throughout the journey (40%)
Despite these advantages, 16% of buyers chose not to use a broker, often due to perceived costs. However, the study revealed that the average broker fee of £583 was lower than the £799 buyers expected to pay.
Jon Cooper, director of mortgages at Aldermore, commented on this trend:"The rise in first-time buyers using brokers highlights the growing complexity of the property market. Brokers are invaluable, not just for finding the best deals but for guiding clients through a complicated and unfamiliar process."
The Challenges Facing First-Time Buyers
Aldermore’s research also shed light on the hurdles first-time buyers encounter, including:
Underestimating the timeline: On average, buyers misjudged the homebuying process by nearly five months, reflecting a lack of preparedness.
Financial strain: Half of first-time buyers moved into empty homes, unable to afford furniture due to the upfront costs of deposits and associated expenses.
These findings highlight the importance of expert guidance in navigating the complex journey to homeownership.
Calls for Government Support
Many first-time buyers are looking to the government for help. Popular suggestions include:
Enhanced affordability schemes
Stamp duty reductions
Additional incentives to make homeownership more accessible
Why Choose a Broker?
In today’s housing market, working with a mortgage broker isn’t just a convenience—it’s a necessity. Brokers can help you navigate the complexities of securing a mortgage, offer tailored advice, and potentially save you time and money.
If you’re a first-time buyer looking to purchase a home in Warwick or beyond, The Mortgage Social is here to guide you every step of the way. Contact us today for expert advice and support tailored to your unique needs.
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Research findings taken from Aldermores First Time Buyer Index Report 2024. Read the full report here: https://www.aldermore.co.uk/media/11bgv01g/first-time-buyer-index-2024-1.pdf
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