• Two fifths (41%) struggled to understand the range of mortgage options available to them
  • 37% believe that there needs to be greater financial support made available for first-time buyers

September 13, 2024: First-time buyers reveal their biggest regrets, including settling for an area they don’t love and not using a mortgage broker.

A poll of 500 Britons who bought their first property in the last two years found 82% admit there are certain things they wish they had done differently.

A third wish they had started saving for a deposit sooner, while 31% have warned future buyers to stow more cash away for unforeseen expenses.

On reflection, 18% would do more research into mortgage options available and nine percent would reconsider buying a leasehold property.

Felicity Holloway, Head of Mortgages at Moneybox, which commissioned the research, said: “First-time buyers often find themselves navigating a maze of tasks when buying their first home, and unsurprisingly often encounter challenges from underestimating hidden costs to struggling to find the best mortgage for their needs.

“But you don’t need to go it alone. These missteps, while common, highlight the crucial need for expert guidance throughout the home-buying journey. 

“It can be overwhelming to figure out the answers to your questions or even where to turn to for support – but by tapping into the right resources, buyers can avoid making common mistakes and make more informed decisions throughout their homebuying journey – setting them up for long-term success.”

It also emerged that one of the biggest challenges new homeowners faced in the last two years while buying their property was preparing their finances for a successful mortgage application (25%). 

As 41% admitted, it was difficult to understand what mortgage options were most suitable for their needs. 

While 23% also struggled to figure out the best time to buy during a period of housing market volatility. 

Reflecting on their buying experience in the last two years, 36% feel that today’s aspiring first-time home hunters would benefit from more guidance about suitable mortgages for their circumstances. 

With 28% believing aspiring buyers should seek support on selecting the right broker to support their journey. 

Whereas 27% believe it is imperative they get help along the way picking a mortgage lender. 

Many of these recent first-time buyers have also called on the new government to support those now going through the process. 

One in four would like to see financial incentives for sellers to sell to first time buyers, and 22% think it would be worthwhile to relax mortgage affordability assessments. 

While 22% would like to see a policy to introduce no-deposit mortgages considered.

Felicity Holloway, from Moneybox, added: “Given the economic and market challenges over the last 2 years, it’s no surprise that a common theme from the research is that many first-time buyers struggled with understanding and finding the best mortgage for their needs.

Spending plenty of time preparing your finances and engaging a trusted mortgage broker as early as possible in the process will give you the best chance of securing the right mortgage for your needs.

 

And remember, unless you have very specialist needs such as being self-employed, you should never have to pay for an expert mortgage broker but might want to double check you choose one that is ‘whole of market’ to ensure they have access to the very best offers out there to find the best mortgage deal for you.

“Our free mortgage service is here to help make the process of buying a home stress-free, with a dedicated team of expert mortgage brokers and individual case managers on hand to support you throughout.”

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.