Your clients may be unaware of lenders who can help them realise their property dreams
The following article is written by James Briggs (pictured) of Together.
You could say the pandemic has made it more difficult for Brits to achieve their property dreams in 2022. In fact, 28% of those we surveyed* would agree with that statement.
Many people have seen their income or employment situation change or become more complicated, which may also have affected their credit or ability to save for a deposit. As for increasing house prices and the rising cost of living? Well, that goes without saying.
While all of these challenges could have had a negative impact on the nation’s property dreams, our survey would suggest people are feeling more determined and hopeful than ever; 95% of consumers feel driven to make their property goals happen this year, and have big plans to extend or renovate (17%), move house (14%), or buy their first home (7%) in 2022.
Many just simply don’t know how to move those plans forward, and say accessing finance is their main barrier; more than 45% of first-time buyers and 50% of self-employed Brits we surveyed either had doubts they could get a mortgage, or were certain they’d be turned down.
At Together, we understand the challenges homebuyers are facing right now. But more importantly, we understand that a flexible, common-sense approach to underwriting is required to overcome these challenges, alongside a wide range of products. Working with you, our intermediary partners, we can think outside the box and find ways to get your clients moving.
According to our survey, 26% of first-time buyers weren’t able to save for a deposit over the pandemic, but that needn’t stop them moving forward. There are options available, such as buying through a right to buy or shared ownership scheme, which could help them take their first step on to the property ladder; 41% of those we surveyed are already considering these options, and may need the expertise of a specialist lender to support this purchase type.
Our survey also revealed that many buyers are keen to purchase a property in need of refurbishment, perhaps as a more affordable route into the home of their dreams. You could talk to your customers about short-term secured finance options such as a bridging loan, which could let them buy and complete works while living in their current property. Then, once their new house has gone up in value, they could exit on to a mortgage – potentially giving them a better LTV and lower repayments as living costs continue to rise.
It’s also more than likely that many buyers in 2022 would benefit from a lender who can be flexible when it comes to assessing their income. In fact, our survey revealed income was one of the key concerns people had when applying for a mortgage. Fifty-five per cent (55%) of self-employed think the main reason their mortgage application would be turned down is because of their job status, and 35% say it’s because they don’t have a regular monthly income.
At Together we value all forms of income and employment, and make a common-sense decision that works for each individual’s circumstances and goals. So, whether your client is self-employed (with just 12 months’ trading), has multiple income streams, or has a business which is still recovering post-lockdown, we can help you make finance work for them.
Your clients may be uninformed of the different lenders and different finance options which could help them realise their property dreams this year; almost a third of self-employed people and nearly half of first-time buyers are completely unaware of the specialist lending options available.
Fortunately, there are brokers, like you, who can show them the way.
Brokers are trusted and perfectly positioned to give customers the confidence they need to keep moving forward by connecting them with specialist lenders who are willing to listen and be more flexible when it comes to their circumstances.
Together, let’s get your clients moving.
For professional intermediary use only.
*Results gathered from three surveys conducted by OnePoll in December 2021 on behalf of Together. Featuring 2,000 UK participants, 1,000 UK self-employed participants, and 1,000 first-time buyer participants.
