Mortgage advisers will have no doubt seen renewed interest from first-time buyers of late.
The stamp duty holiday, and the prospect of avoiding that particular levy, has spurred plenty of people who had previously left their homebuying homes on the backburner to look again at whether now is the time to take that first step onto the housing ladder.
Of course the sharp house price growth that the tax break has led to has complicated matters, but the launch of the mortgage guarantee scheme, and the subsequent swathe of 95% LTV mortgages now available, has opened up far more options for those with only a modest deposit but who are determined to own their own home.
Advisers are crucial allies for homebuyers of all kinds, but rarely is that expertise more valuable than with first-time buyers.
Demystifying mortgages
The fundamental part of any adviser’s job is helping their client to identify the right mortgage for their circumstances. But with first-time buyers there’s plenty of groundwork to do before you even get to that point, breaking down the jargon and terminology that we may be comfortable with but which are entirely alien to normal homebuyers.
After all, how many first-time buyers walk through the door with a thorough understanding of loan to value, decisions in principle and equity?
Advisers are absolutely integral in preventing those alien terms from effectively serving as a barrier, putting potential buyers off from the very beginning.
Understanding affordability, and particularly how different lenders approach the issue, is another area where a good adviser is worth their weight in gold to a first-time buyer. To someone who has never been through the homebuying process, affordability might seem like a relatively straightforward affair – they know what they can afford to pay each month. But proving it to a lender, clearing those affordability hurdles, can be much easier said than done and an adviser’s expertise makes it all the more achievable.
Who do you work with?
Another big element for advisers to think about here is who they work with. Picking the right partner businesses means not only you are able to provide a more rounded service to your clients, but you can also ensure they are well looked after and kept informed throughout the homebuying process.
This is something that we’ve focused on a lot at eConveyancer over the last couple of years. Our DigitalMove platform, for example, helps to add transparency to the conveyancing process, so that clients understand exactly how their case is progressing and the root cause of any potential delays.
We know all too well that even seasoned homebuyers may not really understand what conveyancing is, and why it’s a vital part of the homebuying process, and by demystifying it and making buyers feel included in what’s going on, it cannot make things run more smoothly but reduce stress levels too.
Additional services that you can provide a first-time buyer with will not only provide an additional revenue stream, but can also help put their minds at ease when purchasing their first home.
At eConveyancer we’ve partnered with the insurer Surewise, which offers cover to would-be buyers should their purchase fall through for the money spent on legal and valuation costs. Another partnership which we know has helped first-time buyers has been with Just Move In, a home setup service which helps buyers get things like broadband and energy suppliers in place in time for the move.
There’s more to helping a first-time buyer than simply breaking through the jargon that our industry so loves. Working with the right partners means you can help those buyers get their finances and property on a solid footing, which only improves the chances of them coming back to you for all of their financial needs in the future.
Karen Rodrigues is sales director at eConveyancer
