Member Article

A fix for the region's first-time buyers?

Adore Properties MD, Jeremy O’Connor explores that trials and tribulations facing first-time property buyers

How to responsibly get young people and first-time buyers onto the property ladder seems to be the ever-growing question our industry is struggling to answer.

Despite a range of schemes, from help-to-buy ISAs, to the much-debated shared ownership scheme, to promises to build more houses, the industry seems stuck in a groundhog-day style pattern of struggle.

The latest topic up for debate in this area is that of ‘unfair’ regulations on renters battling to obtain mortgages. A petition, attracting over 150,000 signatures has called on banks to recognise an applicant’s pattern of paying rent long-term, often at a much higher cost than a mortgage on the same property would be, when assessing affordability. With banks obliged to prove customers could afford a rate rise of 3% above the standard variable rate (meaning, in reality, for some this could be as high as 7%) what are first-time buyers to do?

As a property professional with numerous years experience, I have seen first-hand the struggle first-time buyers face when looking to get on the housing ladder and have compiled a few top tips:

Broker a deal

Banks and Building Societies can offer great options but, with thousands of products on the market, seeking advice from a reputable mortgage broker can increase your chances of finding a better deal, tailored to suit your individual circumstances.

Share nice

It’s not just couples who can benefit from splitting the costs of running a household, a number of products now also exist to allow friends to purchase property together. However, think carefully before proceeding - legally-binding mortgage contracts are a lot harder to walk away from than your University house-share!

App-y to help

We’re often told that saving for a deposit can come down to lifestyle changes (who could forget the controversial announcement back in May, by a multi-millionaire Australian property developer, that millennials are placing smushed avocado ahead of deposit savings?!)

In reality, it can be difficult to find money to put aside, however if you are looking to cut down there are a range of apps that can prove useful – from budgeting calculators to savings apps to voucher code collectors.

Using these apps, taking the time to set realistic goals and finding an estate agent that carries property within your budget can all help you get your first foot firmly on the property ladder.

This was posted in Bdaily's Members' News section by Adore Properties - Stockton .