One of the top specialist mortgage lenders in the country has called on mortgage advisors to reach out early to first-time buyers with deposit saving tips.
Coventry for Intermediaries published this suggestion in its most recent advisor guide. It states that advisors need to offer more to clients than just advice about interesting new mortgage products hitting the market. It then goes on to say that, instead of stopping there, advisors should be speaking to those looking to buy for the first time about how to save the necessary deposit money, as first-time buyers struggle with increasing living costs and a difficult economy.
According to FT Adviser, this guide then continues by arguing that:
“By engaging potential buyers early, they can help set expectations, ensure good understanding of affordability and risks and – where allowed – provide guidance on savings measures that can help buyers get a deposit together.”
This guide points out that lenders such as Coventry have introduced measures designed to help first-time homebuyers in the current economic climate. These include higher loan-to-earnings caps, lengthier mortgage repayment terms and broader deposit contribution definitions.
It then concludes by pointing out that first-time homebuyers represent a very valuable untapped market for mortgage advisors that is predicted to be worth £73.1 billion within the next two years.
These are useful pointers for advisors who have completed the all-important CeMAP mortgage advisor training, as that valuation suggests that those looking to buy for the first time are a group advisors cannot afford to ignore.