Complexity vs Clarity
Posted on 8th October 2024 at 15:01
It’s too Hard
Interest rate googling and internet searches of deposit percentages, talked about with family members who bought their house 40 years ago, can be the foundation of today’s first-time-buyer’s perspective on buying a house. For this reason, there’s no surprise that the thought of owning a home becomes a pie in the sky idea and an unobtainable prospect in the next five years, if not more.
Surveys, like that of the Yorkshire Building Society, kick out statistics stating ‘almost half (47%) say they feel so overwhelmed by the complexity of the current market that they’ve given up even looking for a property to buy.’ The fundamental in this fact is not the percentage, but the word ‘complexity’. The internet provides such a wealth of information from places of varied reliability, it can create a complex web of thinking for younger borrowers, that will never compare to the comfort of sitting down with a broker and talking clear, concrete facts.
'overwhelmed by the complexity'
Some of the Facts
The future does not have to seem bleak for those trying to get on the property ladder. In the last 12 months, we have seen the introduction of a £5000 deposit mortgage allowing first time buyers to proceed with a much lower deposit. Schemes such as shared ownership and products like green mortgages can offer more affordable buying options that may just be the difference of making that investment onto the property ladder now and avoiding further rental costs. We also know that the Bank of England will meet again in November and the predictions suggest another base rate drop, with some economist’s view that this decrease will continue into 2025.
We can look at deals from across the market place and know the facts on the rates and eligibility of a huge range of products for first-time buyers. The key is to not waste time getting caught up in the ‘complexity’ and speak to us for absolute clarity on what your circumstances mean now, with an exact plan for moving forward.
Younger Borrowers
Younger borrowers have a lot to contend with: not only the mis-information that can circulate on social media, but they face an absolute truth that house prices are higher and the deposit pot needs to be bigger than 30 years ago. But behind every opinion about the housing market, and every survey with its array of statistics, sit the many lenders who work to keep their doors open to all buyers. With every financial and market change, banks and building societies are constantly reassessing and evaluating the products they offer and looking to find solutions to enable new mortgage customers.
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