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UK First-Time Home Buyers Market Report

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Dublin, October 28, 2021 (GLOBE NEWSWIRE) – The “Consumer research report for first-time buyers 2021” report was added to ResearchAndMarkets.com offer.

This report traces the “customer journey” of consumers when they buy their first home and take out a mortgage. It examines who FTBs are and the differences between the main types, types of trips taken (online / office, professionally supported / freelance, etc.) and takes into account pinch points throughout the process and satisfaction by in relation to the overall journey. He finally discusses what happens when the trip is over and the traveler becomes a customer.

67% of first time buyers (FTBs) who bought their homes in the COVID years of 2020 and 2021 were impacted by COVID.

Its main impacts on FTBs were as follows:

  • It usually reduced activity. She was more likely to delay a purchase than to advance a purchase. It appears that the negative effects of COVID were more pronounced at the start of the pandemic in 2020 than in 2021, when lockdowns began to ease.
  • This has changed the demand for professional support. 2020, the year the pandemic first hit the UK, saw a dramatic shift in FTB attitudes towards seeking professional help. In view of the uncertainty in the market, the removal of face-to-face contact between mortgage providers and customers, and the withdrawal of many high-value mortgages from the market, many FTBs have shifted their priorities towards professional help in setting up a mortgage loan. . In 2021, on the other hand, as the market settled into new ways of working and bottlenecks began to ease, FTBs returned to a more autonomous approach to setting up mortgages, independent travel. taking more and more importance.
  • This encouraged a Switched On trip. FTBs who embark on a trip in 2021 are much more likely to have had an online trip than those who have taken a trip in previous years, with COVID clearly having a significant influence on this.
  • COVID appears to have reduced mortgage dependency. Comparing FTBs affected by COVID to everyone who bought in 2020 and 2021, indicates that those affected by COVID tend to rely less on mortgages to pay for their homes than those who are not affected. This could be due to the fact that during COVID, high LTV mortgages were pulled, meaning the market has shifted to more affluent FTBs that rely less on mortgages when buying.
  • This has made customer journeys more difficult to navigate. Tour operators impacted by COVID and more generally all FTBs traveling in 2020 and 2021, found the trip more difficult, compared to those taking trips in 2018/2019.
  • COVID-inspired customer-supplier communications. Customers affected by COVID are much more likely to have contacted their mortgage provider in the past year than those who are not. These FTBs were also more likely to have received communications from their mortgage providers. While 66% of FTBs impacted by COVID have contacted their mortgage provider in the past year, only 23% of those not impacted by COVID have done so.

These and other findings on the nature, form and types of trips undertaken by first-time home mortgage clients are discussed in the report. 2021 first-time customer journey.

Three types of first-time buyers (FTB) are considered:

  • Those who bought their first home since 2018: Complete Journey FTBs
  • Future FTBs:
    • Those who are currently in the process of buying a home but have not yet completed: Journey In Progress FTB
    • Those who haven’t started a journey yet but have specific plans to do so in the coming year: Journey Not Started FTB

Main topics covered:

1. SUMMARY

  • Completed FTB Journey Gets Ahead
  • The very popular collateral mortgage loans of FTBs
  • FTBs prefer an accompanied route
  • Almost half of FTBs have a lit course
  • FTBs buy with LTVs of around 55%
  • Eight in ten FTBs use government support programs
  • A largely fluid journey
  • Future FTBs need a lot of hands
  • High levels of supplier-FTB post-trip communications
  • A dynamic market
  • COVID is reshaping the customer journey

2. PRESENTATION

  • Methodology
  • The stages of the mortgage process

3. WHO ARE THE FIRST BUYERS?

  • Completed travel takers get a head start because they are richer
  • The very popular collateral mortgage loans of FTBs
  • Older FTBs and those who buy recently are most likely to have repayment mortgages
  • Fixed rate offers dominate
  • Terms of office stretch during COVID
  • A COVID-19 pandemic journey?
  • Lloyds Banking Group, the preferred mortgage provider

4. AN INDEPENDENT OR ACCOMPANIED COURSE

  • Future FTBs will likely need more support than they realize
  • COVID leads to more extreme actions

5. BRICKS VS. CLICK PATH

  • The typical journey goes from virtual to real
  • Big online change for communication and organization
  • Almost half of FTBs are on
  • COVID, timing and affluence the main drivers of online actions
  • The journey of an FTB may begin with online resources, but it remains a central role for brokers
  • FTBs Prefer Online Communication With Mortgage Providers
  • COVID is moving communication online further

6. FINANCIAL CHARACTERISTICS OF THE TRIP

  • FTBs buy with LTVs of around 50%
  • Dependence on mortgages decreases
  • The typical FTB has a mortgage of around £ 140,000
  • Virtually all homebuyers use a mortgage
  • Four in ten buyers receive financial help from friends and relatives
  • Most FTBs buy with spouses or partners
  • Eight in ten FTBs use government support programs
  • The value of official support schemes will increase

7. IDENTIFY PINCH POINTS

  • Four trips
  • Being affected by COVID makes it harder to travel
  • Easier travel improves satisfaction
  • Better first contact and help with legal and financial information can improve satisfaction
  • First and first contact, a particularly important area to focus on
  • Mortgage providers are getting the right aspects of their service
  • But there is always room for improvement
  • Future FTBs need a lot of hands
  • Key influences of income and social level on trust

8. AFTER TRIP: BE A CUSTOMER

  • Most FTBs don’t experience financial stress after purchasing them
  • Most FTBs receive communications initiated by the provider
  • Almost half of FTB customers initiate a conversation with their suppliers
  • COVID stimulates customer contacts
  • Most contacts initiated by FTB end with a satisfied customer
  • The customer journey may be changing online, but the phone is still crucial
  • The FTB market can change quickly
  • Social grade A FTBs will be the main drivers of business creation

For more information on this report, visit https://www.researchandmarkets.com/r/14x2t1