Most report a positive experience with brokers during the homebuying process
Nearly two-thirds (64%) of first-time buyers used a mortgage broker to purchase their first home in 2023, a significant rise from 36% in 2022, according to Aldermore’s First-Time Buyer Index.
The findings of the research, conducted on behalf of Aldermore bank by Opinium among 2,000 prospective first-time buyers and 500 actual first-time buyers, underscore the increasing reliance on brokers among new buyers as they navigate affordability challenges and stringent lending requirements in the current market.
The report revealed that brokers played a crucial role in simplifying the homebuying process, with nine in 10 (90%) first-time buyers reporting a positive experience.
Buyers valued brokers for clearly explaining the application process (42%), assisting with paperwork (42%), and providing support throughout the journey (40%).
While 16% of buyers opted not to use a broker due to perceived costs, the report highlighted that the average fee charged by brokers (£583) is lower than the £799 many prospective buyers expected to pay.
Jon Cooper (pictured), director of mortgages at Aldermore, said the findings reflect the growing complexity of the housing market.
“The rise in first-time buyers using brokers highlights the growing complexity of the property market,” Cooper said. “It’s encouraging to see many buyers having a positive experience, which isn’t surprising. Brokers are invaluable, not just for finding the best deals but also for guiding clients through a complicated and unfamiliar process.”
Aldermore’s First-Time Buyer Index revealed several challenges faced by first-time buyers in the UK. One of the key findings was that first-time buyers significantly underestimate the length of the homebuying process, with many buyers under-preparing for the time it takes to secure a home. On average, they misjudge the timeline by nearly five months, highlighting a gap in understanding the complexities of purchasing property.
The research also found that half of first-time buyers moved into empty homes after completing their purchases, unable to afford furniture due to the financial strain of deposits and other associated costs. This underscores the significant upfront expenses first-time buyer face, leaving little room for additional spending on essentials like furnishings.
Amid these challenges, many first-time buyers are looking to the government for support. Suggestions from first-time buyers include increased affordability schemes, reductions in stamp duty, or more robust incentives to help buyers secure their first home.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
