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Getting Onto the Ladder – Prospects Post Covid for First Time Buyers

The market for first-time buyers was already a struggle, due to rising property prices and a difficulty to save a sufficient deposit. Post Covid, many lenders have taken away high loan-to-value (LTV) products, leaving first time buyers with even fewer options. There are still prospects though.


This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.


Property market post Covid-19

There is no getting away from the fact that the property market has been deeply affected by Covid-19. Following the announcements of lockdown in March, many homeowners and investors faced their dreams of property purchase ripped out from under their noses, as the housing market was suspended. Many of these transactions have now fallen through due to various reasons.

According to the Bank of England, mortgage approvals in May were at a record low and HMRC reported half the property transactions compared to the previous year.

Bouncing back

However, in the weeks following the ease of lockdown, the market did see a renewed surge in demand. This shows that buyers and homeowners are still keen to buy and sell their properties, whether this is picking up an existing transaction from pre-March, or making new arrangements in light of recent government announcements to stamp duty land tax.

With the prospect of a possible recession, some may remain cautious and will steer away from making any knee-jerk decisions right now. Those that have been unfortunate to lose their jobs or their businesses, will likely need to revisit their plans at a future date.

First time buyers – what’s the deal?

Unfortunately, first time buyers have yet again drawn a short straw, as many lenders have withdrawn high LTV products, which are a higher risk for the lender.

First time buyers were already up against it with rising property prices and a struggle to raise the necessary deposit, particularly in areas where property prices were at a peak, like London.

The government has made an important step in recognising the battle that first time buyers face, by initiating a Stamp Duty holiday, which will certainly offer first time buyers an incentive to take action sooner rather than later.

In the future, the government could offer increased support for the Help to Buy scheme and shared ownership, to keep generating help for first time buyers, despite the lack of options on the mortgage front.

These government backed schemes are popular with first time buyers, and have already helped a significant number of people get onto the property ladder, where they wouldn’t have otherwise been able.


Find a mortgage

If you are a doctor or dentist with dreams of owning a home, but have seen reducing mortgage options, use our Mortgage Finder tool to see the options available to you.

After doing some initial research, speak to our specialist mortgage advisor who can help you with the next steps.

Also, keep an eye on our weekly Mortgage Rate Update, providing the latest rates including those for first time buyers.


Getting onto the ladder can still be possible
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