Buying a home proves a very difficult process for first-time buyers, according to almost nine out of 10 (89 percent) of those who participated in specialist bank Aldermore’s First Time Buyer Index.
Newcomers to the housing market say that, despite the efforts of the likes of Help to Buy schemes, purchasing their first home is still considered really tough.
According to the index’s findings, one in four (25 percent) of first-time buyers were refused a mortgage the first time they applied.
Almost half (48 percent) suffered disappointment when at least one property purchase fell through, while four in every 10 first-time buyers (39 percent) took more than one attempt to buy. For one in 10 (10 percent), it took three attempts to secure their first purchase. According to Aldermore, the average cost of failed transactions was around £2,200.
Finding the cash for a deposit is the No.1 issue for one in four (40 percent). More than a quarter (27 percent) are living with family or friends to save for their deposit, up from 23 percent a year ago.
There is a huge upside to owning your own home with almost eight in 10 (79 percent) saying home ownership has made them more financial stable and 81 percent saying not wasting money on rent was a bonus.
That same figure, 81 percent, said they were confident they could move up the housing ladder having secured their first purchase.
Aldermore is a specialist mortgage provider that offers 95 percent LTV mortgages for first-time buyers.
Charles McDowell, commercial director of mortgages at Aldermore, said: “It is apparent from our latest Index that the house-buying process leaves a lot to be desired.
“The housing market is in a state of flux, and first-time buyers are still clearly finding it difficult to get on the housing ladder leaving them anxious, stressed and out of pocket.
“We have been encouraged by the Government’s renewed focus on the issue of housing with the recent review into the house-buying process, although it is too early yet to gauge real impact.
“We believe the real crux to fixing the broken housing market is to improve and increase housing stock. This is echoed by over a quarter (26 percent) of first-time buyers who would like to see more building on the green belt.”