Broker could open door to mortgage for 1st-time buyers

Just over a quarter of first-time buyers use a broker to arrange a mortgage, but with nine out of 10 first-time buyers needing a mortgage to buy their property, new research from the Yorkshire Building Society suggests they are failing to realise how crucial a broker’s help can be.

In fact, almost half of those who had actually succeeded in buying their first home had done so using a mortgage organised by an independent mortgage broker.

In its First-Time Buyers Report, research carried out by YouGov showed that 28 percent of first-time buyers planned to buy their first home using finance organised by an independent mortgage broker.

Of those questioned who had bought for the first time within the last 12 months, almost half (47 percent) had used a broker.

The report noted: “Over 90 percent of first-time buyers will need a mortgage to finance the house purchase and many potential first-time buyers state a preference to go directly to a high street bank to get one.

Interestingly, those who have already completed their first house purchase were more likely to have used a mortgage broker, indicating how initial intentions are not always realised when it comes to sourcing a mortgage.

It would appear that mortgage brokers are helping lots of first-time buyers to find and apply for a mortgage, but prospective first-time buyers may not be aware of the role a mortgage broker can play in this respect.

Perhaps an earlier conversation with a mortgage broker could help prospective first-time buyers to consider their options and understand what is possible earlier in the process.”

YouGov surveyed a representative sample of aspiring first-time buyers across the UK to examine their attitudes and concerns towards buying a property.

Almost a third (32 percent) said they would prefer a detached house as their first home, with less than a quarter (24 percent) happy to settle for a studio or flat.

More than half (55 percent) said they intended to spend less than £10,000 furnishing or refurbishing their new place.