A report by Yorkshire Building Society revealed that many first-time buyers are facing significant financial fears after purchasing their own homes.
One in 10 first-time buyers expected to have less than £200 left each month after buying a home, while one in 20 believed they would have nothing to live on at all.
Two-thirds of respondents were concerned they would not be able to save once they buy a home.
Despite these worries, 55% of potential buyers were still interested in owning a home to stop “wasting money” on rent.
The average amount respondents expected to have left each month after bills was £752.
Ben Merritt, director of mortgages at Yorkshire Building Society, said: “The apparent disparity in fortunes amidst the likelihood of a continued downward trend in interest rates, presents the mortgage industry with a prime opportunity to step in.”
He called for better education for first-time borrowers and measures to assist them in managing their budgets effectively.
The mutual has introduced the Doshi tool to guide first-time buyers through the home buying and selling process.
Merritt added that falling interest rates are expected to make monthly mortgage payments cheaper over the next 18 months.
He noted that combining this potential with efforts to improve affordability could significantly benefit first-time buyers, who have struggled with high house prices and living costs.
Suggestions included a replacement for the former Help to Buy scheme and a review of affordability regulations.
The survey found that 32% of respondents wanted the Government to increase affordable housing availability, 40% wanted lower interest rates, and 33% called for more flexible repayment options.
Merritt said: “What never ceases to amaze us, is the determination first-time buyers are showing amidst historic challenges to their right to homeownership, in the form of record-high house prices and the raised cost of living.
“Yet again, this latest research shows that they want to own and are prepared to change their lifestyles to achieve it; they simply want to be able to afford a reasonable quality of life as well, which doesn’t seem like too much to ask from where we’re standing.
“Although nothing is certain in a volatile market like the one we’re continuing to experience, and we are seeing ongoing fluctuations in interest rates, we hope that they will continue to settle out overall and this will help ease one problem for first-time buyers, which is meeting their monthly mortgage payments.
“But this latest cry for help is a clear sign that we need to take a holistic look at all the factors at play and ask what else can be done by the industry at large to ensure owning a home is the start of a positive new life chapter, as it should be, and not a shackle stopping people from enjoying it to the full.
“Buying a home is a big commitment that should be taken seriously.
“People do need to be realistic and set their budgets accordingly, and to some extent it’s about weighing up short-term sacrifice against the clear long-term gain of owning their own property.
“However, we don’t believe buying a home should mean foregoing all of the things which make life worth living.”
