A decade ago we saw a record low in first time buyers applying for mortgages. Now, 10 years on, we are seeing a spike in applications. So, what is changing?
Thankfully the dreaded B word (Brexit for those who have been living under a rock for the last 2 years) does not seem to be scaring a new generation of buyers to climb that property ladder. In a time of seeming uncertainty, it appears first time buyers are more determined than ever to be homeowners. But how?
With claims that banks are increasing their lending, a surplus of government schemes on offer, independent mortgage brokers being able to offer a wider range of deals and the “Bank of Mum and Dad” being more generous than ever. Whilst these reasons are definitely integral in giving first time buyers the foot up they need, there must be more… what are individuals doing differently?
Moving back in with your parents, working two jobs or in an old-fashioned twist, perhaps, younger people are starting to save their pennies earlier in life. Being obscenely frugal very month by cutting back on luxuries and removing that very common trait of living hand to mouth, could be part of it.
With mortgage costs being more predicable then renting, building equity and genuinely feeling as though you are investing instead of feeding the landlord, there is little more attractive than this prospect especially in comparison to renting or permanently setting up camp in the family home. Perhaps in this time of uncertainty, this kind of lucrative thinking is exactly what the country needs OR is this new generation simply more willing to live in less populated, more affordable areas outside of the major cities.
Whether this offers some answers or all the answers, the UK is focused on the future and are investing in themselves!