Raising a deposit, general affordability and the cost of living have been cited as the main obstacles to getting on the property ladder.
A poll conducted by Bluestone Mortgages found general affordability and the cost of living were the top concerns when considering buying a home, with 37% of respondents saying so.
This was followed by 34% who said raising a deposit was their main barrier to homeownership, and 33% who cited having insufficient income.
Nearly a third (32%) of prospective first-time buyers said the house prices in their chosen area were a challenge, while 27% named mortgage interest rates.
Despite affordability being named as the main barrier to getting onto the property ladder, there was a lack of knowledge around the possible schemes to help.
Bluestone Mortgages found that just 36% of respondents had heard of shared ownership and less than a tenth, 8%, were aware of the newer Deposit Unlock scheme.
Homemovers facing similar affordability concerns
Bluestone Mortgages’ survey also polled homeowners and found 43% felt house prices were the biggest hindrance to them moving home.
This was followed by 37% who said mortgage rates, and 35% who felt held back by general affordability and the cost of living.
A quarter said the availability of properties was stopping them from moving on and 19% said they had trouble raising a large enough deposit.
Just a third will use a mortgage broker
Despite finding these worries among both potential first-time buyers and current homeowners, Bluestone Mortgages revealed 33% of respondents planned to use a broker to secure a mortgage. Fewer planned to go directly to their lender, however, at 15%.
Ryan Davies, strategy director at Bluestone Mortgages, said: “For many people getting onto or climbing the property ladder is still a distant dream, but it’s not impossible with the right support. Now more than ever, the industry needs to focus on developing and raising awareness of innovative solutions such as Deposit Unlock to tackle the challenges associated with getting onto the property ladder.
“Brokers have a key role to play in this, not only through marketing their services and demonstrating where they can add value, but highlighting the range of products available to help customers with smaller deposits achieve their homeownership ambitions.”
Bluestone Mortgages joined the Deposit Unlock scheme in 2023 and brought its product to market earlier this year.
Related: End of Help to Buy: 10 alternatives for first-time buyers
This article was originally published on YourMoney.com’s sister title, Mortgage Solutions. Read Affordability and cost of living named main barriers to homeownership.
