First-time Buyers

Seven in ten first-time buyers confident of getting on the property ladder

Seven in ten first-time buyers confident of getting on the property ladder
Nick Cheek
Written By:
Nick Cheek

Those looking to get the keys to their first home are now more confident about their ability to buy compared to earlier this year, a high street lender reveals.

Research from HSBC revealed that nearly seven out of ten people who are hoping to buy their first home in the next 12 months are now more certain of achieving that goal, compared to findings at the start of the year.

The reasons behind the buying decision were varied, with just over a fifth of first-time buyers saying that it is cheaper than renting.

Gaining more independence was the next most popular reason to buy with 20% saying this was their primary motivation.

Financial security (17%) and providing for their family (14%) were the next two most popular reasons to purchase their own home.

One in nine said the main reason was in using their first home as an investment.

Regional differences

The level of confidence varied by region. First-time buyers in Wales (64%) and Yorkshire and Humberside (63%) were most confident of being able to afford a new home.

The levels dropped to 53% in the North East and Northern Ireland, and 52% in the East Midlands.


Finding a mortgage provider

Using an adviser was the most popular way to receive information about the mortgage market, with 41% taking the broker route. Just under a third went directly to a mortgage provider website, while 28% used comparison sites.

When it came to picking the lender of choice, cost was the number one driver (32%). Next came a recommendation from a broker or adviser (31%), while 26% opted for a brand that had gained their trust.

Just over a fifth said they chose a lender because they were already banking with it.

A recommendation from family or friends was the least popular reason for choosing a provider with just 11% taking this option.


‘Shift in attitude is reassuring’

Andrew Matson, head of mortgages at HSBC UK, said: “It’s encouraging to see more optimism among first-time buyers.

“The first half of this year has been challenging, but the shift in attitudes is reassuring and highlights the resilience of the housing market.

“While we don’t have a crystal ball to see what the future holds, it is pleasing to see the positive sentiment running throughout our research and we will continue to lean in to help support our customers.”