From October onwards, the affordability gap for first time buyers has been dropping and now sits at a record low of 10%. With house prices continuing to increase, this news is encouraging for first time buyers meaning that more lenders will be able to meet their required loan size.
The affordability gap shows brokers, such as ourselves how likely it is that they will be able to source a lender that can provide the loan amount requested by their client. It is our job to ensure that all requirements can be met while communicating any updates or timelines back to the client.
With the right lender, the possibility of owning your own home can quickly become a reality. As your broker, we will look at multiple lenders and what they offer, which will then allow us to narrow down to those that are most suitable and likely to accept you.
Previously peaking at 24% in April, a higher affordability gap will have added to the turbulent times experienced by buyers during the first lockdown when their requirements might have been unattainable. The more recent changes mean that first time buyers can look forward to their future with financial confidence and positivity towards securing a loan.
If this affects you as a first time buyer, don’t hesitate to contact us to discuss your options and what you can do next.