Financial app Multiply has set its sights on first-time buyers as it seeks to address an “overlooked gap” between consumers who can and cannot afford advice.
The app has launched an account recommendation feature to help first-time buyers find financial products that will help them save for a deposit.
According to Multiply, the primary product types recommended are cash Isas, easy access savings accounts and an exclusive Lifetime Isa provided by Unity Mutual.
Multiply, which offers both financial advice and guidance, said it spoke to a large segment of users to understand the areas where they needed advice the most.
However, it said it was not looking to compete against mortgage advisers, but to support users through the process of saving for their first deposit.
It added that first-time buyers were a market of consumers that “desperately want advice”, but were underserved by the existing market at a time when it had “never been harder” to get onto the property ladder.
Vivek Madlani, chief executive officer and co-founder of Multiply, said: “First-time buyers face incredible hurdles at the moment.
“House prices have soared to unprecedented levels, which means the amount of deposit people need to purchase is too high in proportionate to income.”
Research from Vida Homeloans has found that one in five renters who are looking to buy a property are finding it harder to step onto the housing ladder due to the pandemic.
It comes as the average price paid by first-time buyers reached £256,057 last year, an increase of 10 per cent from 2019, according to research by Halifax.
The average deposit paid by a first-time buyer also increased by almost a quarter (23 per cent) to £57,278 last year, compared to £46,449 in 2019.
Multiply will be partnering with mortgage advisers this year to connect them to clients ready to take out a mortgage.
Multiply is not alone in its aim to reach first-time buyers, with online financial adviser OpenMoney expected to launch a mortgage advice service.
OpenMoney announced in 2019 that it was expanding into mortgage advice that would target first-time buyers and cover the duration of the homebuying process, including helping clients build a deposit.
But the launch, which was expected last year, has been postponed due to the pandemic.
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