For many, buying a first home is a milestone typically associated with younger adults. However, recent data reveals a noticeable shift: an increasing number of older individuals are now taking their first steps onto the property ladder. This trend highlights the changing dynamics of homeownership in the UK, where financial and lifestyle factors are prompting more people in their late 50s and beyond to pursue their dream of owning a home.

Increase Seen in the Number of Older First Time Buyers

It has recently been shown that new proprietary data from Legal & General Ignite concerning mortgage adviser inquiries has revealed emerging patterns among first-time homebuyers in the UK.

These new patterns include a rise in the number of older individuals making their first property searches. For example, in Q1 2024, there was a notable 13% surge in the number of 56–65-year-olds exploring their initial property purchase and associated mortgage needs compared to the corresponding period last year.

This statistic indicates a growing cohort of buyers deferring homeownership until their late 50s and beyond yet remaining enthusiastic about entering the property market.

Legal & General Mortgage Services plays a significant role in facilitating mortgages in the UK, holding involvement in 1 out of every 4 mortgages and 1 out of every 3 intermediated mortgages.

Consequently, insights from its Ignite platform furnish a comprehensive market outlook, highlighting evolving tendencies among UK borrowers to aid mortgage brokers in effectively catering to their clients.

Kevin Roberts, Managing Director, Legal & General Mortgage Services: “Our figures show that the desire to own a home remains strong, even for those who are waiting longer to take those first steps onto the property ladder. As affordability begins to ease, we’ll likely see further activity in the first-time buyer market, especially if inflation continues to fall and the Bank of England reduces its base rate later in the year”.

Considerations for Older First-Time Home Buyers

As with most mortgage applications, there are several factors to consider before making a formal application. For those looking to take out a mortgage later in life, some specific points need to be discussed with your mortgage adviser.

Assessing Income and Retirement Plans

Firstly, how will your income and future retirement be affected by taking on a first-time buyer mortgage? You need to ensure you have a stable income, such as pensions or part-time work, to demonstrate your ability to repay the mortgage. It's also crucial to consider how your retirement income will support any mortgage payments.

Evaluating Loan Terms for Older Buyers

A mortgage adviser can offer help in assessing the loan term. Our team can help evaluate the mortgage term options available in the market, determining whether a shorter term to pay off the loan sooner or a longer term for lower monthly payments aligns with your financial goals.

Importance of Savings and Credit History

As with all mortgages, it is important to have some savings for a deposit, and your credit history may affect your credit score. A good credit history improves your chances of mortgage approval and securing favourable interest rates.

Professional Advice for First-Time Buyers of Any Age

These are just some of the important considerations that will need to be addressed when thinking about a first-time buyer mortgage at an older age.

Tracy Dove, financial adviser, mortgage adviser in Laindon and Basildon, Essex, and Exeter, Devon, said: 

“As the number of older first-time buyers increases, it is important to understand the factors that will impact any application at an older age. The mortgage broker team at Thomas Oliver has the experience necessary to research the latest market information to determine which lender will be the most appropriate for each person’s individual financial situation”.

Tracy continued, “No matter what your age, as a first-time buyer, we always strongly recommend that you speak with one of our professional mortgage advisers to ensure you have all the professional advice you need to make a truly informed decision on which mortgage suits your circumstances”.

Expert Mortgage Advice for Older First-Time Buyers

Our professional mortgage advice can help make your first-time mortgage search and application process pain-free, no matter your age.

By looking for professional advice from a mortgage adviser now, you could get the right mortgage deal for you. Call Thomas Oliver Mortgage Advisers on 01707 872 000 or send us an email at enquiries@thomasoliveruk.co.uk.

You may also want to read our recent article: Rising Trend in Extending Mortgage Payment Terms.

---

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 

---

Source: https://group.legalandgeneral.com/en/newsroom/press-releases/more-older-buyers-looking-to-step-onto-the-housing-ladder-legal-general-finds-a-13-increase-in-56-65-year-olds-searching-for-their-first-home

Approved by The Openwork Partnership on 06/06/2024.