Without a significant overhaul of the mortgage market, homeownership rates are likely to continue to fall in the future, according to this week’s FTAdviser podcast guests.
Speaking on the FTAdviser podcast, Will Rice, chief executive of specialist mortgage lender Gen H, and Lewis Shaw, owner of Riverside Mortgages, explained what innovation is currently taking place in the first-time buyer market and outlined their views on where they think the market is heading.
Both guests acknowledged that one of the main issues for first-time buyers trying to buy a home, is that while often they have the income to afford it, they do not have the capital for a deposit.
“Saving up 5 per cent of the average house price these days takes a long time, especially when you are facing eye-watering rents,” Shaw said.
Shaw gave an overview of some of the innovations that are currently available in the market and shared his view on what ones offer the best route to homeownership.
Rice, whose company launched in 2020 and specialises in lending to first-time buyers struggling with affordability issues, also outlined his view of the market and shared his own experience of recently becoming a homeowner.