Older first time buyers in the UK today – can we help you buck the trend?

Your home may be repossessed if you do not keep up repayments on your mortgage

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How old are first time buyers in the UK?

Buying your first house used to be something you did soon after leaving education, often in your 20’s. These days, people can be much older before they’re able to get on the property ladder. In fact, recent research from Nationwide^ found 1 in 5 people felt they wouldn’t be able to own their own home until they were in their 40’s. Their research is backed up by Santander* who also recently commented that 18% of first-time buyers taking a mortgage with them are over 40.

Why are first time buyers now older?

Affordability is the key problem. House prices are high and salaries haven’t risen at the same rate. Rents are also high which means some people are spending so much of their monthly income on rent, there isn’t enough left over to save for a deposit on a new home.

What help is available for first time buyers?

There are a range of schemes available to support those buying for the first time. Here’s a summary of a few of them:
  • Mortgage Guarantee Scheme

Introduced to help address the shortage of high LTV products and encourage lenders to support more first-time buyers, the Government launched the Mortgage Guarantee Scheme in 2021. The scheme compensates lenders for a portion of their losses if a borrower defaults on their loan.

You must have a 5% deposit, only certain lenders are part of the scheme and there are some restrictions on the specific property you can buy under the scheme. The Mortgage Guarantee Scheme is due to expire on 30th June 2025.

  • First Homes Scheme

You may be eligible for the First Homes Scheme which allows first time buyers to buy new homes with a 30% to 50% discount on the market value. Only available with participating developers (or via an estate agent if the property was originally purchased through the First Homes Scheme) and for houses bought in England only.

The scheme is managed at a local government level and some councils might prioritise key workers over others.

  • Shared ownership

Usually available through housing associations and local councils, shared ownership lets you buy as little as 10% of the house you’re going to live in and then you pay rent on the remaining 90%.

You can buy more of the property as you’re able to afford it (known as ‘staircasing’) but if you want to sell, the landlord is allowed to choose a buyer for your share.

Other funding options are available and with almost all schemes, you can get a mortgage to help you buy the house you choose.

How are we helping first time buyers?

Most newcomers to property investing come to us needing one critical thing: information. Without experience it’s hard to know what to do and when you should do it during the house-buying process. We can help educate and guide you by imparting our knowledge, gathered over more than 100 years’ combined industry experience, in several ways;
  • our first time buyer guide (which goes over the basics like what a mortgage is, how lenders make their decisions on loans to borrowers, what you can do to affect your affordability and what you can expect throughout the journey).
  • time and communication – we’re available on the phone, via email or in the office if you want to ask questions as your mortgage progresses.

Typically, we’ll have a longer chat up front (which is free from cost or obligation) during which you can tell us about your plans; where you want to buy and what your current financial situation is. Then, when we’ve made your application, you can get in touch whenever you need to check in or if something doesn’t go according to plan.

You’ll have your advisor’s direct line, mobile number and email address but anyone in the administration team will also be able to help with your case.

  • Sharing our connections – buying a home will involve several professionals like estate agents, surveyors and solicitors. We’ve been in the business long enough to have created a strong network of contacts we trust to do a good job. We can put you in touch with anyone you might need along the way.

Getting you started

As well as helping you understand how to buy a house, we can put you in the best position for securing a property by getting you a ‘Decision in Principle’ (DiP). This is a letter from us which sets out how much you can borrow and means estate agents and vendors will take you seriously when you make an offer on a new home.

What do others say?

We help lots of first-time buyers get on the property ladder, here’s what a few of them had to say about our service recently: Image shows four reviews from Mortgage Style clients who are first time buyers You can read more of our Google reviews at the top of our home page or read our Trustpilot reviews here*.

Contact us

Please get in touch today about your first steps onto the property ladder. We’ll explain more about our service and what you can expect. We charge a fee but you won’t pay anything unless you decide to go ahead with our advice. 01275 370360 contact@mortgage-style.co.uk Sources*: ^. Life starts at forty *. Santander press release YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP TO DATE WITH YOUR MORTGAGE REPAYMENTS. There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £495 to £995 and this will be discussed and agreed with you at the earliest opportunity. *By clicking the links in this blog you will leave Mortgage Style’s regulated website. Neither Mortgage Style Ltd nor HL Partnership can be responsible for any content created and published by a third party outside our regulated site.