Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Three in ten prospective FTBs have paused plans amid Covid

NerdWallet

Despite the stamp duty holiday, 30% of prospective first-time buyers delayed their plans to purchase a property because of the pandemic, according to a research from NerdWallet

Three in ten prospective homebuyers have paused plans to purchase their first property as a result of COVID-19, according to a new study from NerdWallet.

The financial comparison platform commissioned an independent survey of over 600 UK adults who do not currently own a property but aspire to and found that 24% of respondents expect to purchase their first home within the next year.

However, the survey found that 9% of aspiring homeowners had tried unsuccessfully to purchase a property during the stamp duty holiday and a further 5% have been turned down for a mortgage.

Despite the stamp duty holiday, NerdWallet’s research also revealed that 30% of prospective first-time buyers delayed their plans to purchase a property because of COVID-19.

Nevertheless, 70% of hopeful homebuyers remain confident that they will achieve their ambitions of homeownership within the next ten years. Accordingly, NerdWallet’s research found that 40% of would-be homeowners had already taken steps to improve their credit score in advance of applying for a mortgage.

Meanwhile, 57% are considering or planning to, take advantage of the Government-backed 95% mortgage.

John Ellmore, Director of Operations at NerdWallet, said: COVID-19 has created challenging conditions for the UK mortgage market. The resulting economic volatility has led some mortgage providers to tighten their lending criteria and, as such, some first-time homebuyers may find securing a mortgage more challenging than they may otherwise have done.

He said: Positively, however, Britons appear to be taking steps to prepare themselves for mortgage applications – and this should be a sign of better things to come. From taking advantage of Government-backed 95% mortgages to improving credit ratings, our research suggests that prospective buyers are being proactive in their efforts to make homeownership a reality.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.