11 MORTGAGE NEWSLETTER Products, and shared ownership. However, many clients are not aware of some of these options available to them. This is why education and early engagement with clients become so important. I believe there’s also a great opportunity for advisers to challenge affordability myths by leveraging their existing client relationships, particularly those who know someone who is preparing to buy their first home and encourage them to refer their friends or family to seek professional advice. Social media also offers a powerful platform to share insights and connect with aspiring buyers early in their journey. And if you are not a social media expert, Accord’s Growth Series has a lot of supporting and useful content that can help scale up your business and run a successful and engaging social media channel. The bottom line Solving the affordability challenges isn’t the job of one group. It requires collaboration across the mortgage industry. Lenders must continue to be creative and offer innovative solutions. Mortgage advisers are more essential than ever, not just for advice, but for advocacy and educating clients about options they might not realise are available. The earlier clients understand their options and what’s required, the sooner they can take meaningful steps toward owning a home. Policymakers can shape a future where supply meets demand (maybe that’s just my wishful thinking) and buying a home doesn’t require generational wealth. Cost of Living While inflation rates have moderated compared to the peaks of 2022, many households continue to feel financial pressures. With energy, food and other essentials becoming more expensive, many buyers struggle to save enough for a deposit or prove they can afford the mortgage. Why is early education and engagement key? In such a complex and shifting environment, early education and proactive engagement are critical in empowering first-time buyers to make informed decisions and overcome some of the perceived barriers to homeownership. By starting the conversation sooner, advisers and industry professionals can tackle misconceptions early. For example, many first-time buyers believe they need a large deposit. However, several lenders have recently introduced innovative mortgage products that require little to no deposit. At Accord, we have just celebrated our first-year anniversary of the £5K Deposit Mortgage. One year on, and we’ve already helped more than 800 people into their own first homes. Designed with firsttime buyers in mind, it offers a fantastic opportunity for clients to take their first step towards owning their dream home, shaving years off their deposit saving time. There are many more solutions for those struggling with affordability, such as: Joint Borrower Sole Proprietor, Income Boost We've improved our affordability Property Price: £500,000 Requested Term: 30 Years Applicant 1 Income: £50,000 Applicant 2 Income: £50,000 Monthly Committed £2,000 Debt Repayments: Adults: 2 Dependants: 0 Scenario 1 Max. Borrowing £440,254 Previous: £384,721 Difference £55,533 Property Price: £300,000 Requested Term: 30 Years Applicant 1 Income: £40,000 Applicant 2 Income: £20,000 Monthly Committed £800 Debt Repayments: Adults: 2 Dependants: 2 Scenario 2 Max. Borrowing £260,488 Previous: £223,350 Difference £37,138 How much more could your clients borrow? Find out more about our Affordability at www.accordmortgages.com Information correct as at 30 April 2025 and subject to change.
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