At The Nottingham we’re committed to helping people onto and along the property ladder – it’s something we’ve been doing for over 170 years. That’s why we take a flexible approach and look at things on a case-by-case basis. We see the individual, not the criteria, so we’re well placed to help when you find yourself with one of those ‘hard to place’ cases.

And one group of borrowers who are likely to find it difficult to get their foot on the property ladder this year is first-time buyers. Currently, they’re facing a number of obstacles including, uncertainty over house prices and mortgage rates and an ongoing cost of living crisis, which can make saving for a deposit a real challenge.

Data from the Office for National Statistics shows that the average house price in the UK in January 2023 was £290,000, while the national average salary was around £33,000. That means that to raise a 10% deposit, the average first-time buyer would need to save close to a year’s gross salary!

While that target would be challenging in the best of times, with inflationary pressures continuing to push up the cost of living, many first-time buyers will need support to achieve the required deposit.

The end of Help to Buy

Previously, many turned to the Help to Buy scheme, which was introduced in 2013 and supported more than 335,000 borrowers, providing more than £11bn of financial assistance. But, with no replacement scheme on the horizon, buyers will need to look elsewhere for support and that is where ‘the bank of mum and dad’ comes in.

Statistics show that around 170,000 first-time buyers received family assistance with their deposit in 2022 – 46% of all mortgaged first-time buyers. And with the end of Help to Buy, that figure is expected to rise in 2023.

At The Nottingham, we recognise how important that support is, which is why we accept 100% gifted deposits from immediate family members. And to help make raising the deposit as easy as possible, we offer 95% LTV products with both two and five-year terms.

Our criteria supports first-time buyers

But that’s not all, our criteria also supports first-time buyers by taking a generous and fair view of a borrower’s incomings and outgoings. For example, we make our affordability assessment based on real-time bank statements, rather than ONS data.

To help keep costs down, our 95% products are fee-free and come with one free basic valuation and a subsidised Homebuyers report. They also benefit from a 40-year maximum term that allows borrowing up to the age of 75, giving borrowers the flexibility to opt for lower monthly repayments.

So why not take a look at our product range and see if a mortgage from The Nottingham fits your clients’ needs?