Is Barclays set for a first-time buyer mortgage boost?

30 Oct 2019

First-time buyer mortgage market shares could change

Research from IRN’s First Time Buyer Mortgage Report 2019 indicates a large potential boost to Barclay’s first-time buyers (FTBs) market share. A much higher percentage of FTBs yet to make their first purchase favour Barclays compared with FTBs who made their first home purchase up to five years ago. At the same time, other providers like Halifax and Nationwide Building Society, the two market leaders among FTBs who have already purchased a home, could experience a decline in share.  Barclays was one of the first mortgage providers to offer FTB mortgages linked to the incomes or savings of friends and relatives (Barclays Family Springboard mortgage). While other providers offer similar products, it may be that by being early into the market Barclays has stolen a march on its rivals.

Other findings from the first-time buyer mortgage market survey

  1. There are three main pinch points along the typical FTB’s mortgage customer journey. These occur at the Go/No Go Stage of the process (essentially being granted a mortgage and accepting its terms), the pre-purchase mortgage research stage and the legal stage (e.g. finding all the legal and financial information required to be granted a mortgage and complete a home purchase).
  2. FTBs are typically aged 32-33 when they enter the mortgage market and most recent FTBs are from the AB social grade.
  3. The gender of home buyers has changed recently. Females seem to be growing in importance as FTBs and look set to make up a larger share of buyers over the next few years
  4. Almost eight-in-ten FTBs who had purchased a home within the past year had used one of the Government help to purchase schemes, and a similar proportion of FTBs yet to make a purchase said they will also be using one of these schemes. However, around four-in-ten FTBs who have used a Government scheme to buy their first home said they did not need to use the scheme in order to complete the purchase.
  5. Mortgage providers can improve their product offers by: offering more part and part mortgages; offering mortgages on longer terms; stressing more the non-price elements of their mortgage offer; offering more mortgages linked to the incomes or savings of friends and relatives; introducing more age-related mortgages; and by co-operating with the government to introduce new FTB-focused products.

About the First-time buyer mortgages consumer research report

This report aims to give clients a crucial insight as to the current mindset of the typical first-time buyer (FTB), their approach to their first property purchase, and where this is directly impacting their wider spending potential. A key aspect of this report is considering the customer journey taken by recent FTBs and how this may differ from the journey likely to be taken by FTBs entering the market in the coming years. It also examines the market and identifies potential opportunities for relevant providers to grow their business and analyses how government-backed schemes to help FTBs have impacted the market. The report further explores what mortgages FTBs have or are considering buying, and where they have sought advice.

The findings in this report are based on a survey developed by IRN Research, with the interviews conducted by MIS Group. Interviews were conducted among 573 individuals who are, or will soon be, FTBs. The research was conducted in September 2019.


Download a Report Description

Related IRN Reports

Improving the Mortgage Customer Journey

Existing Homeowner Mortgages

First Time Buyers’ Market Data Report

Homeowner Mortgages Market Data Report.


IRN Team

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