• Two fifths (40%) found it difficult to secure a mortgage suitable for their financial situation
  • Of those who faced difficulties, 39% regretted not using a mortgage broker when buying their property

September 12, 2024: Understanding the best mortgage options available for their circumstances was identified as a key challenge experienced by recently successful first-time buyers (FTBs), as two fifths (40%) have said they had found it difficult to secure a favourable mortgage rate, research finds.

Moneybox, which supports the largest community of first-time buyers in the UK, recently undertook research amongst 500 recently successful FTBs across the UK to spotlight the challenges encountered on the journey to homeownership and crucially begin to move the conversation towards solutions that can enable the next generation of homeowners across the UK.

Interestingly, those who struggled to understand their mortgage options were also more likely to have regrets about their home-buying journey; 43% said they wished that they had spent more time researching the mortgage options available to them, while 39% regretted not using a suitable mortgage broker.  

Many of today’s FTBs are facing some of the toughest conditions in over 70 years to get their foot on the property ladder. Economic uncertainty, volatile market conditions, soaring interest rates, and affordability concerns have left these buyers having to navigate an increasingly complex homebuying market. 

Reflecting on their experiences and how the next generation of homeowners in the UK could be better supported, 37% believe that there needs to be greater financial support made available for first-time buyers – e.g. government support. 36% called for more guidance to help people find suitable mortgage options relative to their personal circumstances. 

28% felt more needs to be done to help people find a suitable mortgage broker, while 27% identified that many would value guidance on finding a suitable solicitor and surveyor.

Felicity Holloway, Head of Mortgages at Moneybox, comments: “Buying a home is the biggest financial commitment most of us will make in life, so it’s understandable that so many first-time buyers are calling out for more guidance and support throughout their homebuying journey. 

“Yet, our research shows that a surprising number of people are not using the services of a mortgage broker, and so are missing out on freely available expertise and guidance that could prove to be invaluable in helping them achieve the best outcomes possible. We also know firsthand that even among those who engage a broker, many wait until they’ve had an offer on a property accepted! It’s disappointing, but perhaps not surprising, to see that 8 in 10 of the recently successful home buyers we surveyed said that, in retrospect, there are certain things they wish they had done differently.

“As an industry, we must do more to break down the barriers that are preventing people from finding the information they need and to support them in making financial decisions throughout their homebuying journey with greater confidence. 

“The industry needs to work together to collectively engage and support people earlier in their homebuying journey. Education and increased transparency around the perceived differences between different broker business models (i.e., free / fee-paying), will help to ensure that brokers’ services are better understood and are accessible to all”. 

“These steps could make a huge difference to the lives of the next generation of home buyers in the UK.”

ENDS 

Notes to editors:

Methodology:

Moneybox commissioned Censuswide to undertake research amongst 500 first-time buyers who had bought their first home in the last two years. Fieldwork took place between 15th August and 20th August 2024. Censuswide abides by and employs members of the Market Research Society which is based on the ESOMAR principles.

About Moneybox Homebuying:

Moneybox Homebuying is a free service from the market-leading app-based digital wealth manager that helps make home-buying easy, from first step to doorstep.  A team of 14 experienced advisers and case managers are on hand at every stage of a customer’s journey, providing expert guidance and support throughout, alleviating much of the administrative burden in what can be a very stressful and time-consuming process. This service is available for free to first-time buyers, ‘next time buyers’ and those looking to remortgage, with customers able to generate a “Mortgage in Principle”, apply for a mortgage, and track their progress, all within the Moneybox app. Moneybox Mortgages Ltd. (MML) is an appointed representative of Mortgage Advice Bureau, the UK’s leading mortgage intermediary brand. Mortgage advisers do not work on a commission basis but are paid a competitive set salary to promote impartial advice.

Moneybox mortgage advice is provided by Moneybox Mortgages. Moneybox Mortgages is a trading name of Moneybox Mortgages Ltd which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority. Moneybox Mortgages Ltd. Registered Office: Suite 1.07, 1-2 Hatfields, London, United Kingdom, SE1 9PG. Registered in England No 12954235.

About Moneybox:

Moneybox is the award-winning app on a mission to help people build wealth with confidence so they can enjoy life, today and tomorrow. Launched in 2016 by co-founders Ben Stanway and Charlie Mortimer, the company has experienced rapid growth, and today has over £7bn in assets and a community of more than 1 million customers. Moneybox provides a range of great value products and services, across saving, investing, home-buying, and retirement as well as helpful tools and educational content, to help people manage and achieve their short, mid, and longer-term financial goals. Moneybox enables customers to set money aside in the way that suits them best using round-ups, regular deposits, or instant payments. In March 2022 Moneybox raised £35m in a Series D funding round, led by Fidelity International Strategic Ventures, existing investors Oxford Capital, CNP, Burda and Breega, plus new investor Polar Capital. This brings total funds raised by the digital wealth manager to £100+ million.