Every so often I’m reminded of the reason building societies formed all those years ago, about the strength of individuals coming together to help each other to buy a home – in turn providing peace of mind and comfort brought by a place to call their own.
Indeed, it is this spirit which drives us today, fuelling our purpose of putting home ownership within reach of more people – generation after generation.
But, for many people, that dream of homeownership is harder to achieve now than it was then.
Our research shows that, every day, 233 people face being priced out of the housing market, illustrating how it has become an ever more remote prospect for hundreds of thousands of people in this country.
In 2023 we supported nearly 18,000 first-time buyers purchase their first home, in what was a much smaller mortgage market.
Over half of our mortgages in 2023 went to first-time buyers. Encouragingly, we’ve seen a really promising start to 2024, particularly for first-time buyers – with plenty of new ideas emerging to help them get on the housing ladder.
We also use our voice to influence changes needed to address the UK housing crisis – calling for more homes to be built; for better access to affordable housing; for better ways to save for a deposit.
But those are long term solutions; our purpose demands that we act to help today.
That’s why we created new and innovative partnerships and products designed to break down barriers which prevent home ownership for first time buyers; and why we have developed a package of support, products and tools for brokers to help guide first time buyers on to the housing ladder – for example we recently published a new guide designed to help brokers understand the barriers first time buyers are facing.
We became the first UK mortgage provider to work with Experian Boost, which helps aspiring homeowners to improve their credit scores. This has helped many borrowers who would not have otherwise secured a mortgage with us.
We created mortgages and savings accounts to give first time buyers a leg up onto the housing ladder. We are a leader in Shared Ownership mortgages, winning What Mortgage’s ‘Best Shared Ownership Mortgage Lender’ for eight consecutive years; we provide greater mortgage choices, including up to 95% LTV on our residential mortgage range and we launched Reach Mortgages, which are designed to help those onto the ladder who would have previously not have been eligible for one of our standard products.
We recognise the first-time buyer market offers unique challenges, so we have a range of contact options all staffed by experts – some of whom have worked in the mortgage market for over 30 years and are specialists in the first-time buyer market.
Our new podcast series, ‘Lending Matters’, showcases our market expertise and offers helpful advice and insights to help navigate the first-time buyer market.
And our criteria search improvements help you find the information you need quickly. No confusing results, saving you time, reducing the need to call us to query anything.
Although awards aren’t everything, they really mean a lot to us when they are voted for by brokers. We were voted First-Time Mortgage Buyers’ Choice – Moneyfacts Awards 2023. We were also voted ‘Top Rated for Service’ for both residential and buy-to-let lending in the Mortgage Finance Gazette Rated for Service Awards 2023.
Our strength in broker support, technology, underwriting and strategic focus were highlighted as the key reasons for this achievement.
Alongside the direct support for brokers and first-time buyers, we’re taking steps to improve the supply of houses in the UK. We’re clear that the significant stranglehold second homes and holiday lets have on the availability of homes for local residents in some areas is not compatible with our purpose.
In 2022 we withdrew from new lending on second homes to focus more of its efforts on helping people onto the housing ladder. Our latest development – which started in March – is a 12-month trial restricting new loans on holiday let homes in North Norfolk and certain areas of North Yorkshire.
We do this because we want to make a difference to the lives of our members. That we helped aspiring homeowners get on the housing ladder; that we helped our broker partners feel confident to do the same.
After all, everyone deserves a place to call home.
Martese Carton is director of mortgage distribution at Leeds Building Society
