How Does Income Protection Insurance Work?

According to the Building Societies Association, it’s the most expensive time to be a first-time buyer in over 70 years. There are many things to consider when you buy your first home, including government schemes to help first-time buyers get onto the property ladder. In this blog, we look at the latest legislation relating to housing and first-time buyers.

Affordable housing for first-time buyers

One of the biggest challenges for first-time buyers is affordability. Although buyer demand has increased by 15% since 2019, the number of available homes has not risen at a similar rate. Overall, supply is still 6% lower than before the pandemic, resulting in higher asking prices. The same situation also applies to the rental market with prices out of reach for many home seekers.

However, the new government included the delivery of new homes in their manifesto, pledging to build 1.5 million new homes. Deputy Prime Minister, Angela Rayner, has promised “the biggest boost to social and affordable housing in a generation”.

The latest UK housing target is 370,000 new homes per year. As a result, local authorities will now have an obligation to improve their housebuilding processes. At least 50% of developments are expected to be affordable and built on low-quality green belt land.

First-time buyer housing schemes

Before the election, Labour promised to extend the Conservative’s Help to Buy scheme, under the new name ‘Freedom to Buy’. This is part of their commitment to support 80,000 young people get onto the property ladder. It’s hoped that lenders will feel encouraged to offer more mortgages for those who cannot afford a large deposit.

The Right to Buy scheme is also expected to be reviewed. Currently, this enables most council house tenants to buy their home at a discounted rate. The government might limit the eligibility for this scheme to ensure new social homes are not sold off.

At the time of writing (October 2024), there are other government-backed schemes available too. These include the Mortgage Guarantee scheme (until 2025), the First Homes scheme and Shared Ownership schemes. For more advice on the current government schemes, read our previous blog, Update on First Time Buyers Relief.

Mortgages for first-time buyers

There are a few ways you can become mortgage ready as a first-time buyer. Try to improve your credit score by checking reports from TransUnion, Equifax, and Experian. Usually, lenders will review six years of financial history, looking for consistent payments. Also, check that your account details are up to date and consider closing unused accounts. Lastly, monitor your spending and try to avoid unnecessary expenses.

At Bubble Finance Hub, we understand that buying your first home can seem daunting. If you need mortgage advice, our approachable and empathetic team will explain how the mortgage process works. We can source hundreds of mortgage deals, giving you full reassurance from our recommendations to be able to purchase your first home.

For advice on income protection insurance, please get in touch to book an appointment.

As with all insurance policies, conditions and exclusions will apply.

Thank you for reading our blog, What to Consider When You Buy Your First Home

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