Property Blog: Determined or deluded? First time buyers undeterred by MMR
The Mortgage Market Review sees lenders closely scrutinising a borrower’s expenditure, causing many to fear a drop in house purchases. However one group that seems immune to these worries are the first time buyers. But will this doggedness help them reach their goal or will naivety and inexperience simply lead to disappointment. Lynne considers this in her latest blog:
“We all dream of buying our own house, a gentleman’s home is his castle and all that. But over the past few years property ownership has seemed little more than a pipedream to so many.
“However the introduction of schemes such as Help to Buy as well as the welcome return to higher loan-to-value deals has shone a flicker of light on first time buyer’s conveyancing hopes. And it appears this rejuvenation has not been dampened by the implementation of the recent Mortgage Market Review.
“You can’t blame first time buyers. Having spent many a year resigning themselves to a life in rented accommodation, they have grabbed the prospect of BYO (Buying Your Own) and are rightly clinging on to it with all their might.
“However all my years experience in the conveyancing industry has shown me tenacity is not always enough, particularly with the added complication of MMR and further pressure on first time buyers to prove their worth and long term affordability.
“But I certainly don’t want to rain on this enthusiastic parade, anything but. However we need to be realistic about first time buyers and find ways to give wannabe homeowners a real fighting chance.
“This is where the expertise of a financial adviser or mortgage broker is essential. While we are all still finding our feet with the changes, I believe it won’t be long until brokers start to understand the nuances that lenders are zoning in on, The X Factor of mortgage applications so to speak. They are the ones who interact with lenders day in day out after all. If mortgage brokers were important before, they are essential now. They also have access to intermediary-only rates, something that we are starting to see an increase in as lenders recognise the crucial role they play.
“The most important thing, what has always been the most important aspect in buying property, is that borrowers find the right rate for their circumstances, both now and in the future so, whatever happens, their house remains their home.”
Lynne McCaffrey is a licensed conveyancer with over 18 years experience. As Head of Property at Goldsmith Williams Lynne is responsible for the day to day running of the property department, which specialises in conveyancing, remortgage, buy to let and bridging.
Content correct at time of publication