Brokers play a crucial role here, Coventry exec says
Significant regional disparities are hindering first-time buyers in the UK from securing mortgages, new research from Coventry for intermediaries has uncovered.
According to the study, 41% of first-time buyers in the north east are struggling to obtain a mortgage, in sharp contrast to just 18% in the south west experiencing similar difficulties.
In the south east, where property prices exceed the national average of £282,000 by over 20%, nearly a third of first-time buyers have reported challenges entering the property market.
London presents a distinct scenario, with 87% of first-time homebuyers indicating that the current economic conditions have forced them to postpone their purchase plans.
“Our research suggests that many first-time buyers are continuing to face difficulties securing a mortgage, in some cases delaying their plans to step onto the ladder,” said Jonathan Stinton (pictured), head of intermediaries at Coventry for intermediaries.
“The reasons behind these challenges are different from region to region, influenced by factors such as varying house prices, upfront costs, mortgage products and economic conditions that can impact affordability and financing options.”
As also highlighted in the Coventry’s First-time Buyer report, Stinton emphasised the crucial role of brokers in navigating these regional differences, providing essential support and tailored advice to help first-time buyers overcome specific challenges.
“Wherever first-time buyers are looking to step onto the ladder, brokers are the ones who can give valuable support and guidance,” he commented. “Understanding the different challenges buyers face in different parts of the country, and helping them to navigate the property market, will both help brokers to grow their client base, and ensure that borrowers are getting the best possible outcomes.”
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