The pandemic may have been helpful to some first-time buyers according to new research which found the lockdown afforded a quarter of potential buyers a much-needed savings boost.
The study by The Nottingham found 23% of people planning to purchase their first property had been able to save more during lockdown with one in five being feeling confident they could buy something sooner thanks to falling mortgage rates.
Indeed, more than a third of those quizzed by the building society said lower mortgage rates would enable them to buy their first home six months earlier than planned.
Falling property prices caused by the Covid-19 crisis were also presenting an opportunity for first-time buyers, with 35% believing this would also mean they could buy sooner than planned.
The Nottingham said one in five expected the current situation to speed up the process by up to 12 months.
Ben Osgood, senior mortgage manager at The Nottingham said: “There’s no denying that Coronavirus has had a negative impact on many aspects of life.
“However, our research has shown that falling interest rates and property prices could mean that many people saving to get on to the property ladder could do this sooner than they originally thought possible.
“We also recognise that in the current environment, with finances impacted and some products have stricter criteria or being withdrawn, it could be harder to secure a mortgage.”
Challenges
Despite some would-be buyers getting a savings boost during lockdown, it would appear the barriers to the first step of the property ladder still remained for many.
The Nottingham’s research also found 30% thought they would have to wait until their 40th birthday to buy their first home while 8% thought homeownership was something entirely beyond their reach.
Meanwhile, 64% feared they would be at least 30 before they could purchase their first home.
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