Mortgage brokers have seen a rise in first-time buyer (FTB) activity over the past year, according to Nottingham Building Society’s findings.
82% of brokers reported an increased demand from FTBs but noted that current market offerings don’t match the evolving financial and lifestyle trends of these buyers.
Nearly a third of brokers (31%) observed more buyers with fluctuating incomes, while 23% noted a rise in self-employed borrowers, emphasising the need for lenders to accommodate non-traditional incomes.
Additionally, a third saw more FTBs relying on financial support, with many utilising government schemes like Help to Buy and Shared Ownership.
Despite the increased demand, brokers are calling for more flexibility and product innovation from lenders.
A third of those surveyed highlighted the need for new mortgage products to cater to modern borrowers’ circumstances.
26% of brokers want a more flexible lending approach, and 29% called for transparency in application decisions.
Many also raised concerns about the speed of the application process, with 41% stating it’s as slow or slower than two years ago.
Praven Subbramoney, chief lending officer at Nottingham Building Society, said: “Brokers are telling us that first time buyer activity is on the up, but that the financial – and lifestyle – needs of these buyers are evolving, which means the market must too.
“As lenders we can’t ignore the concerns brokers are voicing, especially the need for greater innovation – particularly when it comes to first-time buyers with non-traditional income streams – as well as calls for a more efficient mortgage process.”
Subbramoney added: “We are prioritising the adoption of innovative new technology to make the application experience smoother and faster for brokers.
“It is only by continuing to collaborate with brokers and the industry, we can enhance our offering, helping borrowers to achieve their homeownership goals.”
