Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Awareness Gap Prevents Many from Entering UK Property Market
A recent report from Mortgage Strategy highlights that the biggest barrier facing potential first-time buyers (FTBs) is often not affordability, but a lack of awareness about their options. Many aspiring homeowners assume that homeownership is out of reach without fully researching available products or seeking professional advice.
Research from the Building Societies Association (BSA), referenced in the report, found that more than half of aspiring homebuyers had never spoken to a mortgage adviser or lender. Additionally, one in three had ruled themselves out of homeownership before making any enquiries. Many believed they could not afford the deposit or meet mortgage criteria, and were unaware of products designed to help them. However, after being shown their options, 67% said they could buy a home sooner than they had previously thought.
The report stresses the importance of access to advice for first-time buyers. It notes that the Financial Conduct Authority (FCA) is set to consult on responsible lending as part of its Mortgage Rule Review, and that there is industry support for examining how lending rules can better serve FTBs and underserved groups. Areas under consideration include recognising rental payment history in affordability assessments, addressing variable income and impaired credit, and exploring low-start mortgage products.
The report also references the FCA’s decision to relax the advice trigger rule, which allows borrowers to explore options directly with lenders without an automatic referral to an adviser. Despite this, the regulator still expects consumers to seek advice where appropriate. The report argues that improving access to advice and awareness of its value should remain central to any future reforms.
For letting agents and inventory clerks, the findings underline the importance of ensuring that potential buyers are well-informed and prepared before entering the property market. Early advice can lead to faster decisions, fewer failed transactions, and buyers who are ready to act, which may help reduce fall-through rates in property transactions.
Source: Mortgage Strategy