First-time buyer research reveals some shocking truths

17 September 2019


Matt Smith
Matt Smith
Three brightly coloured terraced houses with large bay windows and steps up to the front door
  • Two thirds (64%) have anxiety over the challenges they face when purchasing their first house.
  • Half (47%) of households earning more than £80,000 are struggling to save for a deposit.
  • Singletons are three times (21%) more likely to pull out of the market than those buying a home with another person (6%) due to stress.
  • The average person spends £2,892 year on travelling and tech.
  • Nearly half (46%) of buyers are considering moving home to save for a deposit.
  • As many people would talk to their parents (55%) as they would seek professional advice from a bank (57%) about buying a house.

This year, reports revealed that first-time buyers account for more than half (51%) of the nation’s buying market for the first time since 1995.

With the average deposit for a first-time home now sitting at £33,000, rising to a monumental £110,000 in London (2018), today new research has revealed that mortgages have as much impact mentally as they do financially on first-time buyers.

We commissioned a survey of 2,000 first-time buyers currently in the market which revealed that two thirds (64%) of the nation’s buyers have admitted to feeling anxiety when tackling the challenges of the mortgage process.

Three in five (58%) admit that a key contributing factor to their high stress levels is saving for a large enough deposit. The stress is not limited to those on lower income as almost half (47%) of households earning more than £80,000 a year have said they’re struggling to save for a deposit. This is in spite of the fact they’re earning nearly three times the national average wage (£29,009).

A lack of education around mortgages is playing a huge part in buyers’ anxiety. Although a quarter (26%) of buyers with anxiety admit they’re satisfied with their knowledge on mortgages, nearly twice as many (48%) of those with feelings of anxiety are unsatisfied with their knowledge on mortgages.

The process has become too much for some, as over a third (37%) of buyers recently considering purchasing a new property have pulled out due to being overwhelmed by the stress of it all.

Today’s findings have showcased just how much impact the mortgage process can have on a first-time buyer, before they’ve even entered the market.

Buying a home is commonly the largest investment most people will make in their lifetime, which is stressful enough without worrying about the mortgage process. This makes it vital that buyers feel at ease from as early on in the process as possible. The results show that there is a real disconnect between advisors and buyers, as many people are seeking advice from their parents, who may have not purchased a property in decades.

We’re here to address the stigma surrounding the financial industry head on and we’re here to show first-time buyers that there is someone on their side. We want our customers to understand the process and to empower them by giving them a service that is fast, fair and for them.

To read the full research, read our press release here.