Insight reflects affordability concerns for first time buyers in England

The most recent English Housing Survey 2023-24[1], shows that 55% of first-time buyers with a mortgage have taken a repayment period of 30 years or more with 31% receiving help from family or friends. Research that reinforces that the goal of home ownership continues to be challenging for first-time buyers. 

Principality’s own mortgage data and research shows that this group are selecting a range of different strategies as they looked for alternative options to secure their first home.

To support them, Principality has adapted its first-time buyer (FTB) offer to respond to different needs. It’s collection of income boosts, family boosts and new home boosts includes an increased 5.5x loan to income for FTBs. 

As part of our commitment to FTBs and to continue to understand more about their home buying experience, Principality partnered with Verve, a global market research agency, to undertake a qualitative look at FTBs. The research explored first time buyers experience at various stages of their home buying journey and how and why they use mortgage brokers. 

‘We understand the challenge buyers are faced with in the current climate. Our research with Verve is helping us shape our future product and proposition development. It also highlighted the role brokers play and their importance as borrowers are looking for certainty, support and solutions to help them take their first steps towards home ownership.” Helen Lewis, National Intermediary Manager. 

Who we spoke to

We spoke to 40 FTBs from across the UK with a mix of ages, gender, life stages and financial confidence.

The participants were split evenly across these different stages:

• Early stage
• Taking steps to save
• Deposit saved and actively looking
• In the process of buying
• Bought in the last 12 months

How did intermediaries fit into the first-time buyer experience?

In 2024, first time buyers continued to rely on brokers. 64% of FTBs used a mortgage broker to help take their first steps into home ownership.[2]

The research showed a growing reliance on mortgage brokers to provide additional support for FTBs to navigate the market and the challenges they face.   

What we found: Key headlines

• FTBs rely on mortgage brokers both emotionally and practically to help them achieve their home ownership dreams. There’s an expectation to take the ‘heavy lifting’ away from the buyer.
• Whilst experiences with Mortgage Brokers are typically more positive than those with Estate Agents and Solicitors, there is still room for improvement.
• Given the extent to which FTBs rely on Brokers – and the fact that they play an advisory role from the point at which they feel financially able to look for a mortgage – it’s clear that they remain an important channel for FTBs.

Want to know more?

• The full breakdown of our FTB research is available to view online.

 
[1] Chapter 2: Housing costs and affordability - GOV.UK https://www.gov.uk/government/statistics/chapters-for-english-housing-survey-2023-to-2024-headline-findings-on-demographics-and-household-resilience
[2] Number of first-time buyers using a broker doubles in 2024 | Financial Reporter

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