Building societies support first-time buyers amid affordability challenges, Moneyfacts

Building societies are focusing on supporting first-time buyers who are facing the worst affordability conditions in decades, according to Moneyfacts. Innovative products and initiatives have been introduced by mutuals such as Skipton Building Society’s Track Record mortgage, Yorkshire Building Society’s £5,000 deposit mortgage, and Leeds Building Society’s partnership with Experian to help boost consumers’ credit scores.

Rachel Springall, finance expert at, emphasised the value of these initiatives: “Building societies offer competitive packages for first-time buyers and continue to support those who are the lifeblood of the mortgage market.

“Mutuals which offer 2- or 5-year fixed rate deals available to first-time buyers with a 5% or 10% deposit currently charge less on average compared to the market average in the same space.”

Despite the competitiveness of building societies, Springall also pointed out that high street banks are offering lower rates on average.

She advised: “High street banks traditionally have more margin to price their mortgages lower, but the lowest rate deal may not be the best choice when all the costs and incentives associated with the mortgage are included.”

The challenge of affordability remains significant, as noted by Paul Broadhead, head of mortgage and housing policy at the Building Societies Association (BSA): “Becoming a first-time buyer is possibly the most expensive it has been over at least the last 70 years.”

Springall concluded: “Any borrower looking to get their foot on the property ladder would be wise to seek independent advice to ensure they find the right deal for them.”