Seven-in-ten FTBs impacted by COVID
18 Oct 2021
67% of FTB buyers feel the effects of the pandemic
IRN Research have just published the First Time Buyer Mortgage Customer Journey Report 2021. This shows that 67% of first-time buyers (FTBs) who purchased their homes during the COVID years of 2020 and 2021 were impacted by COVID.
COVID generally reduced home buying activity among FTBs, with the main negative effects coming at the start of the pandemic in 2020. COVID also changed the nature of the mortgage journeys undertaken by first time buyers, making the journey generally harder to navigate and first boosting then dampening the demand for professional support when buying and shifting journeys towards online/virtual means of travel. COVID also appears to have lowered the dependence on mortgages. Comparing FTBs impacted by COVID to all of those that purchased in 2020 and 2021, indicates that those impacted by COVID tended to rely less on mortgages to pay for their homes compared with those not impacted. This could be because during COVID high LTV mortgages were withdrawn, meaning the market shifted towards more affluent FTBs who rely less on mortgages when buying.
The report goes into detail on these findings and many others about the nature, shape and types of journeys undertaken by First Time Buyer mortgage customers.
About the FTB Customer Journey Report
This report traces the ‘customer journey’ of consumers when they purchase their first home and take out a mortgage. It considers who FTBs are and the differences between the main types, the types of journeys undertaken (online/office, professionally supported/independent etc.) and considers the pinch points along the process and satisfaction with the overall journey. It finally discusses what happens when the journey is over and the journey taker becomes a customer.
Three types of first-time buyer (FTB) are considered:
- Those who have purchased their first homes since 2018: Completed Journey FTBs
- Future FTBs:
- Those who are currently engaged in the home buying process but have yet to complete: Journey In Progress FTBs
- Those who have not yet started a journey but have definite plans to do so over the coming year or so: Journey Not Started FTBs
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