Specialist Lending Demand Growing For First Time Buyers

Stacey Wood

New Build Sales Manager

Vida Homeloans

As infl ation soars to a record 30 year high, it is now becoming harder than ever for fi rst time buyers to get on the housing ladder. Saving for a deposit is an onerous task at the best of times but it is even tougher when the cost of living is so high, and even the bare necessities are more expensive than they have been for a long time. According to analysis from fi nder.com, the average price of a house in England has been trending upwards. In March 2021 it was £274,615, up from £249,121 in March 2020 and £242,982 in March 20191 .

As they strive to build up enough savings for that elusive fi rst deposit, more and more fi rst-time buyers are turning to the bank of mum and dad to help them onto the housing ladder, and they are looking for a lender who does things slightly diff erently. More than ever before, borrowers need a lender that will react and respond when they are faced with fi nancial complexity. Vida is a mortgage lending specialist with a clear focus on helping customers, often not eligible for high street lending, in their home ownership journey, unravelling complex situations, and making the process clear and simple.

Working exclusively with expert intermediary partners, Vida combines cutting-edge technology with skilled and caring people to deliver an effi cient and diff erentiated customer experience. With over 11,000 customers Vida has lent over £2.1bn since launching in 2015, and has continued to invest in technology, people, and processes in order to deliver a market leading proposition that helps more people with a wider range of home buying needs. We are acutely aware of how diffi cult it can be to take those fi rst tentative steps onto the housing ladder, and we want to support our customers as much as we can. 90% LTV mortgages are available on all residential houses and fl ats, including new builds, helping those who may be struggling to save a large deposit whilst renting.

Vida’s residential fee saver product is available for mortgages up to 90% LTV (also including new builds) providing a free valuation on all properties up to £500,000. There are no product fees and prospective homeowners will receive a £250 contribution towards legal fees, meaning that buyers can put more money aside for a deposit, or for those essential early expenses.

To help tackle the aff ordability conundrum, Vida has recently launched mortgages designed specifi cally for key workers so that they can apply for a mortgage up to fi ve and a half times their annual income at 90% loan to value (LTV). In addition to this, there will be a discount on the product’s initial rate, ultimately making buying a new house that little bit more achievable for those working in critical public sector roles.

Throughout the home buying journey brokers have an integral role to support and guide their clients through the many hoops that currently exist. I would urge all brokers to familiarise themselves with their specialist mortgage BDMs to learn how they can help & support you & ensure that more people have the opportunity to take that fi rst step onto the housing ladder.

1 https://www.fi nder.com/uk/mortgage-statistics