"Lenders and brokers must work together to make guidance more accessible, and to provide products that reflect the financial realities of first-time buyers today"
- Steve Griffiths - Shawbrook
New research from Shawbrook indicates that many prospective homeowners continue to struggle with affordability, confidence, and limited awareness of available support, even as interest in buying remains high. The study shows that 77% of aspiring buyers hope to purchase a home within the next five years, yet a range of financial and knowledge gaps is holding many back.
The research highlights that support schemes exist but are often overlooked. Shawbrook’s Home A-Loan report, which examines specialist lending and the challenges facing current and future buyers, shows that 31% of people believe the Government should offer more help for buyers. Existing options such as the Lifetime ISA, Help to Buy, and Right to Buy remain underused. One in five potential buyers, equal to 20%, say they are not aware of any available support.
A lack of advice appears to compound the issue. Only 10% of aspiring buyers have sought guidance to improve their finances. The report also finds that 12% view limited access to mortgage advice as one of the most significant barriers to homeownership. These figures underline the role that clear information and early financial planning can play in improving outcomes.
Affordability challenges continue to shape buyer sentiment. For 43% of respondents, overall affordability is the main barrier to buying a home, while 41% point to high house prices. These concerns affect both short and long-term plans, particularly for those with fewer savings or irregular income.
Confidence also emerges as a key factor in the study. Only 20% of people feel completely confident about being approved for a mortgage. The proportion falls to 10% among people with adverse credit histories, a group that often includes younger buyers or those on lower incomes. This highlights how perceptions of eligibility can hold people back before they even begin the application process.
“Our research makes clear the growing mismatch between people’s desire to buy and their readiness to do so,” said Steve Griffiths, commercial director for retail mortgages at Shawbrook. “While many are aspiring to buy in the near future, a combination of issues with affordability, awareness of available support and a lack of confidence is stopping them from taking that crucial first step."
"The property market remains tough, particularly for those without access to family help or significant savings. However, it’s heartening that so many people plan to buy in the coming years, and the right advice and specialist mortgage solutions can make all the difference to this happening. Lenders and brokers must work together to make guidance more accessible, and to provide products that reflect the financial realities of first-time buyers today.”
