The issues facing first-time buyers

Steve Bryan

February 13, 2017

Steve Bryan is director, intermediary, Legal & General

For many UK first-time buyers, the recent sharp increase in property prices that has resulting from a lack of housing supply has made it harder than ever before to step up onto the property ladder.

As the price of a homeownership continues to rise, more buyers are putting what savings they have towards potentially costly deposits, focused solely on purchasing a property.

Homeownership isn’t the be-all and end-all

When they do finally complete on a purchase, there is often no hesitation about taking out a home insurance policy, but many first-time buyers are still leaving their homes at risk by failing to seek advice on vital protection they themselves may need in the future.

Of course, given the length of time it can now take to get onto the property ladder, many first-time buyers could be well into their 30s before they get there, bringing into play some new responsibilities as well.

Should you become seriously ill and not be able to work, not only will you have to keep up with your mortgage repayments but you may also have a family to support, utilities to pay for, a car to keep on the road and so on.

Thousands of Britain’s homeowners are still unprotected and there no is a better time than any for advisers to help close the ‘protection gap’ and discuss protection with this new generation of homeowners.

Our Bank of Mum and Dad research showed that in 2016, 25% of all mortgage applications were supported financially by parents, presenting advisers with a good opportunity to speak with their existing clients about whether this is something they are considering for their children.

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