Written by John Doughty, chapter managing director at Just Mortgages
You’d have to look back quite far to find a time when first-time buyers were so well supported. Moneyfacts data puts product choice for FTBs at an 18-year high, which is tremendous. FTBs getting on the ladder is integral to the success of the wider market, as their activity keeps the wheels of the market moving. We cannot underestimate the economic impact, too – putting keys into more hands is an important way of driving growth.
It’s not just about lenders throwing their hat into the ring, though; both mainstream and specialist lenders continue to innovate in their products and criteria to plug gaps and support buyers from all backgrounds. Innovation is absolutely critical to provide the broad range of options this segment of the market needs. Prime examples include April Mortgages and their 100% offering, and also their arrival in the new build arena. Gen H is also a big one, with their New Build Boost scheme, which provides a private-sector alternative to the now-defunct Help to Buy scheme. The main difference, though, is that the equity loan is interest-free for the entire term, which is a huge win for FTBs.
Without question, deposit building is still the biggest obstacle for many first-timers. However, options continue to grow in both the mainstream residential market and in the new-build arena, too. I think the biggest turning point was the end of Help to Buy – particularly in the new build space – as it encouraged both developers and lenders to work together and really look into their box of tricks to maintain their presence in this part of the market and provide impactful solutions. Changes to lending rules and affordability assessments have only expedited this process to the benefit of borrowers.
With pressure on deposits and high demand for low-deposit options, Shared Ownership has also become a prominent route into homeownership. We have one of the country’s biggest specialist new build teams working with developers, lenders and housing associations across the country, and Shared Ownership continues to be a big driver behind leads and enquiries. In that void left by Help to Buy, Shared Ownership has really come to the rescue of a lot of budding house buyers, enabling them to get on the ladder with a smaller deposit and access a brand new or nearly new home. With ongoing support and expert advice, they are then able to look at staircasing options to increase their share, explore different options or even enter the mainstream market if possible.
Shared Ownership continues to grow and offer greater access as more lenders and housing associations come to the table. The Government’s commitment to social and affordable housing will likely only help Shared Ownership options to expand further. In 2023/24, Shared Ownership accounted for 53% of all social housing completions and 1% of all housing stock. With demand as it is, there’s no question that share will only increase.
A big advocate for the scheme, we fully support specialist lender Pepper Money and its recent Shared Ownership whitepaper, which offers some great suggestions on how to improve the scheme and increase access. I think increasing the income threshold is just common sense, as it hasn’t kept up with the times. I also agree that a policy change is needed to recognise the role of specialist lenders in the space and wider market, and to encourage providers to embrace applications from these lenders.
There’s a great analogy that the mortgage market should be like a buffet – with something to offer for all different types of people. Nowhere is that more true than in the first-time buyer segment. Achieving this requires lenders who have their ears to the ground to really understand the challenges of the market and an ambition to innovate. We also need schemes that are fully accessible and well supported. On all counts, I definitely think we’re getting there, and I think 2026 looks set to be a really positive year for the mortgage market and for housing more broadly.
Advisers have a critical role to play too in raising awareness of the options available to FTBs. There’s no doubt that there’s plenty of appetite, but many still don’t think they have the ability. We need to be proactive and really visible to highlight how the lending landscape has changed and what options are available to all types of new borrowers. It’s certainly a priority of our new build team and the wider business as we leverage our deep partnerships with lenders and providers, as well as our nationwide broker network, to help FTBs navigate this exciting market.
