It is becoming common among potential first-time buyers to opt for properties that better suit their long-term lifestyle goals, rather than simply getting on the property ladder as quickly as possible, the analysis shows.
That’s why they prioritize space, energy efficiency and location when looking for a new home. Many, MAB said, were willing to delay their purchase so they could secure a property suitable for their future plans.
Respondents were evenly split between those planning to buy an apartment and those looking for a house. Only about 22% in each of these categories wanted new construction.
The findings also show that there is an almost even split in what buyers expect from their first home: 50% expect to buy an apartment and 48% plan to buy a house.
For those looking for a home, space was their priority; 51% admitted they wanted a place for a growing family.
Of those considering apartments, the most important factor was location, which promotes access to specific communities, schools or urban amenities.
MAB said the findings indicate that many prospective buyers are increasingly viewing their first property as a long-term lifestyle decision rather than a short-term stepping stone.
Rachel Geddes, strategic lender director at the Mortgage Advice Bureau, said: “First-time buyers are saving for longer than previous generations, so many are much more conscious about the type of home they choose and the lifestyle they want their first home to support.
“While saving for a deposit remains one of the biggest challenges, many buyers are unaware of the schemes, mortgage products and affordability options that may already be available to help them achieve their home ownership goals.
“By speaking to a mortgage broker early – even if you’re just starting to think about buying your first home – buyers can better understand what they can realistically afford, identify lenders that best suit their circumstances, and potentially get onto the property ladder sooner than they expected.”
No deposit mortgages
There are several no-down-payment mortgage options for first-time buyers who may have trouble saving for a down payment. MAB has highlighted two options in its research.
Barclay’s springboard
Barclay’s Springboard mortgage allows first-time buyers to borrow up to 100% of the value of their property by linking their mortgage to the savings of a friend or family member.
Victoria Thompson, head of strategic partnerships at Barclays, said: “This type of mortgage can be a valuable option for potential homeowners who would otherwise struggle to secure a traditional mortgage due to a lack of sufficient deposit.
“It also allows family members to help in a significant way without permanently parting with their savings. Where appropriate, responsibly and with expert advice, it can provide a practical and efficient route to home ownership.”
Skipton Building Society’s mortgage track record
Designed for tenants who have dutifully made high rental payments on time, the Track Record Mortgage offers a loan for 100% of the property’s value.
Those with a strong history of rental payments are eligible and no deposit is required.
Aidan Walker, Senior National Account and First Time Buyer Lead at Skipton Building Society, said: “Supporting people on the housing ladder is central to Skipton Building Society’s purpose, and as tenants face the twin challenges of rising rental costs and saving for a home, track record mortgages are one of many possible solutions that focus on a buyer’s history of rental payments without the need for a traditional deposit.”