Family opening boxes in new home

First-time buyers brighter horizon

You don’t often hear somebody say that getting onto the property ladder is easy. And if somebody has said that to you, maybe take it with a pinch of salt.

Getting on the property ladder is a long-term dream for many of us, and securing the keys to your own home is a real cause for celebration.

Sadly though, all too often that reality takes some getting to. There can be hiccups and hurdles along the way, and the process can be a frustrating one for a variety of reasons.

New research reflects this, with as much as £400 million reportedly lost by first-time buyers due to failed mortgages in the past year.

That’s pretty grim reading on the face of it if you are a first time buyer. But all is not lost.

The latest Roots Mortgages blog takes a look at what the research shows and what you can do to give yourself the best chance of getting that dream home without losing more cash than necessary in the process.

So what does the research say?

According to retail bank Aldermore, the collective amount of money lost by first-time buyers in the past year due to property deals falling through has exceeded £400 million.

According to their research, around half of first-time buyers have seen their deal fall through, resulting in a loss of close to £3,000 per applicant on average.

Many of these failed deals reportedly happened because of the lockdown that hit us last year. Additionally, setbacks and other delays due to the inertia the mortgage industry faced on occasion will have ramped up costs and losses.

All in all, these kind of stats don’t make for good reading. There are however plenty of reasons to be optimistic as a first-time buyer moving forwards.

Why should I be optimistic as a first-time buyer?

The general reintroduction of 95% LTV mortgages to the mortgage industry is a real bonus for first-time buyers, with the entire government-backed initiative aimed at making it easier to set foot on the property ladder.

The general uncertainty that has affected the mortgage industry, and wider society for that matter, due to the pandemic is starting to ease too. There has also been a recent rise in mortgage borrowing, indicating a greater willingness on the part of lenders to offer suitable mortgages to first-time buyers.

From the perspective of contractors and freelancers, there are also reasons to be cheerful. Certain lenders have relaxed their rules around lending to self-employed workers such as contractors and freelancers of late. This should make it easier to secure that first-time mortgage you seek.

Is there anything I can do to better my chances of mortgage approval?

As a contractor or freelancer, there are a number of things you can do to enhance the chances of your first venture into the property market being successful and not resulting in unnecessary financial expenditure.

In a recent blog we listed some of the main reasons why contractors and freelancers don’t secure a mortgage offer. Poor credit history, insufficient proof of income, debt and not utilising the benefits of contractor mortgage advice could all see you falling short of that perfect mortgage and that dream home.

Ultimately, securing a mortgage is rarely a walk in the park and you might end up not getting the mortgage you want as a first-time buyer. But with careful planning and ensuring everything is as OK as it can be at your end, you give yourself a better chance of getting where you want to be.

Getting expert support can also help you avoid making mistakes and potentially losing money because of these. By taking a positive, calculated approach, it is possible to lower the chances of you joining the many other first-time buyers who lose money due to their mortgage deals falling through before they are completed.

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