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First-time buyers mortgage hurdles

Explore how Perenna empowers first-time homebuyers with tailored mortgage solutions 29 February 2024 by Abi Walker

Are you struggling with the idea of buying your first home? Are you finding getting a mortgage a painful experience? You’re not alone! 

Our recent research shows that many first-time buyers find the process daunting.  Nearly two-thirds of first-time buyers (62%) have faced difficulties securing a large enough mortgage to buy. And 68% say this is because of their income. Rules about how much they can borrow based on their income make it hard. In fact, 42% say the painful experience of securing a mortgage is putting them off buying a home. 

Given the challenges, it’s understandable that buying a home can be tough, especially in places like London where house prices are 34% higher than the UK average![1] 

Because of these hurdles, 50% of people delay big life events, like getting married or starting a family, trying to save up for a house.  

Two in five (40%) believe that mortgage lenders need to better support first-time buyers by allowing greater borrowing power. Almost half (48%) agreed that if there was a mortgage that allowed them to borrow more to buy, they would find this attractive.  

That’s where we come in. We have a solution with our long-term fixed-rate mortgages from 15 to 40 years. We offer a stable, achievable pathway to owning your own home.  

Arjan Verbeek, Perenna’s CEO and co-founder, stresses the need to tackle challenges for first-time homebuyers. “It’s a travesty younger people are put off from one of the most rewarding experiences in life, becoming a homeowner. Seeing mortgage payments shoot up for millions of people because of how traditional mortgages work will of course put off many would be homebuyers. We need to change this trajectory urgently.   

We believe everyone deserves a chance to own their home and enjoy living in it without worry. Longer-term fixed-rate mortgages are part of this solution, providing greater borrowing power, and stability through payments that don’t shoot up, a far cry from the way traditional high street mortgages work. Perenna’s goal is to make homeownership a reality for first-time buyers and make us a nation of happy homeowners.” 

Are you ready to start your homeownership journey? Want to find out if Perenna could help you? Use our calculator to find out how much you could borrow. It is completely confidential, does not affect your credit score and should only take a few minutes. 

You could lose your home if you don’t keep up your mortgage repayments. 

Notes: 

All data, unless otherwise specified, is taken from 1,025 respondents conducted by Censuswide in January 2024 – all respondents were first-time buyers or those looking to buy their first home.  

Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.  

 [1] Zoopla HPI January 2024