More government support is needed for FTBs, broker urges
First-time buyers need more government-backed support, possibly with a reboot of the Help To Buy scheme, according to a mortgage broker who’s based in a town that has the highest UK demand for rental property.
Tom Pitman (pictured), director and adviser at TGP Mortgages and Insurance, believes that a scheme similar to the Help to Buy programme, introduced in 2013, which saw buyers contribute a 5% deposit and the government provide an equity loan for up to 20% of the property value, would benefit those struggling to purchase a home.
Pitman’s business is based in Wrexham, which has been identified by Rightmove as having the UK’s most competitive rental market, with an average of 54 enquiries per available property.
He is well aware of the lack of affordable housing for first-time buyers in today’s market. In Wrexham, there are a plethora of three, four or even five-bed, detached houses but fewer two or three-bed, semis at reasonable prices. Builders who have struggled to sell, pass them on to a local housing association, therefore exacerbating the problem, in Pitman’s view.
“I don’t think there is enough government-backed support currently,” Pitman told Mortgage Introducer, “but I understand it can be complex trying to please everyone. I would like to see more support for first-time buyers or renters trying to buy. The Help to Buy scheme in a similar form, and not just restricted to new builds, may be a step in the right direction, to reduce deposit levels needed and reduce the borrowing required, however it all comes with pros and cons.”
For Pitman, enabling first-time buyers on to the property ladder and into their new homes, is hugely satisfying.
“I love the reward of seeing people post pictures on social media of their new home, and the amount of gratitude and thanks for just doing our job by the clients,” he said. “I love seeing people progress through the stages of buying a home, and being there from start to finish with them - it is really rewarding.”
How is the mortgage market performing currently?
The market is steady, in Pitman’s view, but it’s still testing.
“There seems to be no reduction in the number of people wanting to buy, but it comes with its challenges of rates constantly changing and ensuring clients are kept up to date with any changes,” he observed. “Uncertainty of future rate reductions is still prominent, and I hope that the ship does steady over the coming years, with no more hidden surprises for us, as brokers, but also to bring some stability to buyers and the market in general.”
Pitman does remain optimistic about where the market will be in 12 months’ time.
“I think rates will have fallen and the market will have stabilised slightly,” he said, “however, still nowhere near where it needs to be, but on the right path.”
Having started his career in customer services and hospitality, Pitman’s foray into the housing market began within administration support for a letting agent. He attained his CeMAP qualification as a mortgage broker, at the age of 21, while working at a firm which was owned by a family friend, and he has certainly seen changes within the industry in the years since.
“Tech has simplified processes, not just for advisers but for clients too,” he reflected. “Things need to be done a lot quicker these days, whether that’s a mortgage in principle or submitting an application, so I do feel there is more pressure to get things done. However, technology is now catching up and really improves processes. When I set up my business, that was something that was the main focus and investment, to ensure our processes are as streamlined as possible for clients, but also us.”
Read more: Brokers are you ready for a first-time buyer boost?
How could the mortgage broker-lender relationship be improved?
Working today as an independent, whole-of-market mortgage adviser, Pitman wants greater face-to-face contact with lenders’ BDMs. While he understands that remote working is aimed at improving efficiency, he believes that this doesn’t enable relationships to build as they should, and thinks there is room for improvement. He would also like to see more attention paid to brokers’ feedback.
“I think this should be taken into account more,” Pitman noted, “whether that be processing, criteria or general feedback, which then actually filters through to change.”
For his time away from the office, Pitman distances himself completely from his computer screen to spend time with his partner, enjoying dog walks, as well as supporting his local soccer team, Wrexham A.F.C., up and down the country. But, he’s clearly dedicated to his profession, sharing the best business lesson he has learned in his career to date.
“Always trust your gut,” he urged. “Listen to advice, and take things on board, but with an open mind and with your own personal beliefs and feelings. Always follow your gut feeling, and you’ll never be too far away from the right answer.”
