Written by Ben Thompson, Deputy CEO, Mortgage Advice Bureau
For many, the dream of owning a home is one that can feel increasingly out of reach. With countless headlines about record-high property prices and an ongoing cost of living crisis, it’s no wonder the current generation of renters are left feeling hopeless.
Our latest research shows a powerful paradox: while 73% of renters feel that renting is “money down the drain”, 17% cite a lack of understanding about the buying process as a major barrier to homeownership. Moreover, only a fraction of buyers (6%) credited government schemes as the main motivation for their purchase. This knowledge deficit isn’t down to a lack of information, but rather, a lack of awareness.
As our research demonstrates, many renters are unaware of the solutions that can not only boost their borrowing power but can make homeownership more affordable too. This lack of clarity creates a powerful and restrictive psychological barrier, instilling renters with the belief that buying is out of the question.
The power of education
Education is where the mortgage adviser’s role is essential. By bridging the knowledge gap, advisers instil more renters with the confidence that they can buy sooner than they think. It becomes not only about offering a service that enables customers to achieve their financial goals, but to educate and empower them earlier on in the journey. As an adviser, you’re uniquely placed not just in your ability to tailor advice to a specific product from a vast range of options, but also your capacity as a trusted guide.
Instead of centring the initial conversation around income and credit scores, advisers should focus on the bigger picture. You can’t simply assume that customers approach the homebuying process with a general understanding of all the moving parts. Financial literacy is essential, from explaining what a mortgage is, the difference between a repayment and an interest-only mortgage, to the various types of rates available and how these would align with their long-term goals. By leading with this approach, advisers build a relationship of trust, making the process feel less transactional and more like a partnership with a collective end goal in mind.
This educational approach is also an opportunity to debunk common myths around the homebuying process. Rather than simply explaining to a customer that an excellent credit score isn’t the only factor they need to consider as they get mortgage ready, you can highlight that there are lenders willing to work with those with less-than-perfect credit histories.
Similarly, you can raise awareness of the options available to help them overcome those perceived barriers, such as high LTV lending, long-term fixed rates, Joint Borrower Sole Proprietor mortgages, and schemes such as Shared Ownership. In doing so, you’re not just offering more than just a service – you’re providing a deeper-rooted understanding of customers’ needs.
Adopting a digital-first approach
Interactive digital tools (such as affordability and Stamp Duty calculators) are powerful for bringing concepts to life, as well as allowing customers to factor in additional costs. Seeing these numbers in real-time makes the abstract idea of homeownership tangible and achievable, guiding them through the process with concrete examples. For example, a clear, digital roadmap that outlines each stage of the buying process—from saving for a deposit to getting an offer accepted and completing the purchase—can significantly reduce anxiety and confusion.
You can also create accessible content like blogs, vlogs, and short videos to explain complex topics in simple language. Hosting webinars or Q&A sessions on social media is another way to reach a wider audience of would-be buyers who lack the confidence to have that initial conversation. As well as being a lucrative way of capturing new prospects, this once again establishes the adviser as a trusted, authoritative voice.
An adviser’s most important role is to remind the client of their personal motivation for buying a home. It’s about more than just numbers on a page: it’s about a safe space for their family, the freedom to renovate, or a stable investment for the future. By connecting the practical steps to the customer’s personal dreams, advisers can provide them with the motivation needed to overcome their misconceptions and perceived obstacles.
By focusing on education and guidance, advisers can transform the homebuying journey from an overwhelming, opaque process into a clear, achievable path. This isn’t just beneficial for your bottom line – it’s a powerful step towards building a more financially literate society and empowering a new generation to take their first step onto the property ladder.
Ben Thompson, is the Deputy CEO of Mortgage Advice Bureau
