07 ANSWER ANSWER ANSWER ANSWER Jeremy: We know that there are two key barriers for homeownership in the UK – deposit and affordability. We carried out some research among 500 FTBs in our Home Truths report, published in September 2023, and this showed that 78% of people in this category feel homeownership is becoming an elite privilege, while 63% believe the UK is in danger of becoming a nation of renters. We believe that this is a situation that can’t be allowed to continue. In our report, we’ve recommended that the Government re-introduce some form of state support for FTBs, and an industry-wide review involving lenders, trade bodies and the Government, is needed to start to fix what’s broken in the UK housing market. You have obviously targeted the FTB market in general, but how is this proposition different to others in the market? Gurpreet: Accord’s £5k Deposit Mortgage is designed to help and support FTBs to achieve their goal of homeownership. The FTBs that we support with this proposition will vary and in lots of cases will include those who may be currently renting and therefore unable to save up a 5% deposit. Our analysis showed a deposit of £5,000 – compared to a typical 5% – would make a huge difference to FTBs across the country by reducing the time it takes them to save up and achieve homeownership, from a maximum of 7.5 years (in London), to around 2.5 years. While £5,000 represents a 1% deposit for those who need to borrow the maximum amount available, the key is that customers are still putting money into a deposit, they still have to demonstrate strong creditworthiness and pass an affordability assessment to be eligible for a £5k Deposit Mortgage. So, why did you decide to launch this proposition now? QUESTION QUESTION
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