The Intermediary – July 2026 - Flipbook - Page 28
FIRST-TIME BUYERS
In focus
Helping FTBs
through the door
F
or many aspiring
homeowners, the dream
of geing on the property
ladder has rarely felt
more challenging, with
house prices remaining
stubbornly high relative to earnings
and deposit requirements increasingly
daunting. Puing aside the clear
socioeconomic benefits that come
from being able to buy your first
home, the benefits to the mortgage
industry for supporting first-time
buyers (FTBs) is clear. First-time
buyers play an essential role in the
mortgage market, driving over 54%
of all house purchase mortgages
completed in 2025.
Thankfully, the mortgage industry
is responding with greater innovation
than ever before, developing new
solutions that are helping first-time
buyers turn homeownership from
an aspiration into a reality and this
is happening across all areas of the
market from mainstream to specialist.
The good news is that lenders,
intermediaries and the regulator have
recognised that today’s first-time
buyers do not fit neatly into a simple
box. For example, higher living
costs and changing employment
paerns can make it harder for
borrowers to meet conventional
affordability assessments. The market
has recognised this challenge and
evolved to offer a broader range of
solutions designed to address the
specific challenges that this cohort of
customer faces.
At Metro Bank one of the
most significant first-time buyer
innovations has been joint borrower
sole proprietor (JBSP) mortgages.
These products allow family
members, very oen parents, to
support a mortgage application
through their income without
becoming legal owners of the
property. This approach directly
addresses affordability challenges by
increasing borrowing power while
26
The Intermediary | July 2026
Innovative lenders are
helping a new generation
CHARLES MORLEY
is director of mortgage
distribution, operations
and servicing at Metro Bank
of first-time buyers
overcome the barriers that
stand between them and
their first home”
avoiding some of the complexities
associated with joint ownership.
Elsewhere, shared ownership
schemes have also continued to evolve,
helping buyers access homeownership
with smaller deposits and lower initial
borrowing requirements. While not
suitable for everyone, these schemes
can offer an important stepping stone
for those who may otherwise struggle
to accumulate a large deposit or secure
the level of borrowing needed to
purchase a home outright.
Alongside product innovation,
lenders have become more
sophisticated in their approach to
affordability, again helped by guidance
from the regulator. Traditional
underwriting models oen struggled
to accommodate borrowers with
non-standard income sources or
employment arrangements. Today’s
workforce is increasingly diverse,
with an increased level of selfemployed professionals, contractors,
freelancers and individuals with
multiple income streams.
Many lenders are now using more
flexible assessment methods that
provide a fuller picture of a customer’s
financial position. Rather than relying
solely on standard employment
models, they are considering wider
evidence of income stability and
affordability such as consistency with
rental payments.
This evolution is particularly
valuable for younger buyers whose
careers may not follow the traditional
path, but whose earning potential
is strong.
Digital mortgage journeys,
open banking and automated
income verification have also
made applications faster and more
efficient. More importantly, these
technologies enable lenders to
gain a deeper understanding of an
applicant’s financial circumstances,
potentially identifying affordability
opportunities that may have been
overlooked through more traditional
assessment methods.
Improved digital tools, affordability
calculators and broker-led guidance
are helping customers beer
understand the options available to
them and take practical steps towards
homeownership, with low deposit
options becoming more prevalent
even across traditional mainstream
lenders – thus widening optionality.
The mortgage industry has always
played a vital role in helping people
achieve homeownership. Product
choice is now at its strongest level in
almost two decades, and by expanding
product choice and adopting more
flexible approaches to affordability,
innovative lenders are helping a
new generation of first-time buyers
overcome the barriers that stand
between them and their first home.
For brokers, lenders and the wider
industry, the opportunity is clear. The
future of the first-time buyer market
will not be defined solely by the
challenges it faces, but by
the creativity and determination
of an industry commied to finding
new ways to help people onto the
housing ladder. ●
