Nine in 10 first-time buyers believe they understand the homebuying process before starting their purchase, but 71% go on to encounter unexpected costs, new research reveals.
LPL’s First-Time Buyer Anxiety Index identifies a significant gap between how prepared buyers believe they are and their experience once a transaction gets underway.
The research covers first-time buyers across the country, split equally between those currently going through the buying process and those looking back on a purchase completed within the past two years.
Despite 90% starting their journey feeling confident, the study finds unexpected costs, mortgage difficulties and transaction delays can quickly undermine that confidence.
UNEXPECTED PROBLEMS
Seven in 10 respondents report experiencing delays involving solicitors, while LPL also finds 62% encountered a rejected mortgage application and a similar proportion were gazumped.
A quarter of those who experienced delays say they affected their mental health.
The research suggests buyers currently going through the process are more likely to turn to family, friends and online articles for guidance.
However, those who had already completed their first purchase place greater value retrospectively on professional guidance from mortgage brokers, estate agents, lenders and conveyancers.
PROFESSIONAL ADVICE
Louise Stephens-Pantoja (main picture, inset), Head of Operations at LPL, says: “Getting on the property ladder is one of life’s most exciting milestones, but there is a clear gap between how prepared first-time buyers feel and how prepared they actually are.
“Buyers start the journey confident as there’s more information available than ever before, but it’s the unexpected that becomes the biggest source of stress.
“Better communication and clearer expectations can help prevent this and, as those looking back retrospectively point out, professional help earlier in the process can make a real difference and help navigate those moments with more confidence.”
