How advisors can help single first-time homebuyers

October 4, 2023 by Alan

First-time buyers

The current housing market is difficult for everyone, thanks to a combination of inflation and the cost-of-living crisis, but it can be particularly tough for single people trying to buy their first home. In the past, this demographic made up 53% of mortgages taken out by first-time buyers in 2006, but that figure has since dropped to 46%.

Being able to afford a mortgage on a single income is harder than it has ever been, so how can you use your CeMAP mortgage advisor qualification to help people in that position?

Highlight the specialist market

The specialist mortgage market is growing rapidly at the moment, mainly because there are more borrowers than ever who cannot meet the criteria of the big lenders. Single first-time buyers are among those most likely to fall into that category, whether it is because they have an income below the required level, are self-employed or have credit issues. Those are the barriers that specialist lenders exist to help borrowers through, so advisors should highlight them.

Spotlight shared ownership schemes

The shared ownership scheme is where people purchase a share of the value of a property, then pay rent with the option of completing the purchase in the future. Last year, roughly 56% of those who bought a home using this scheme were single first-time buyers, and average required deposits are less than half of those for standard mortgages. Bringing shared ownership to the attention of single clients is another way that advisors can guide them effectively.