The biggest barrier facing first-time buyers (FTBs) is not accessibility but awareness.
Too many people still think that home ownership is beyond their reach without properly researching their options. Research by the Building Societies Association’s (BSA) Think Again, which Ami helped develop, showed that more than half of prospective homebuyers had never spoken to a mortgage adviser or lender.
One in three had decided on home ownership before making any enquiries. Many thought they would not be able to afford a deposit or meet the terms of a loan, and were unaware of products designed to help them. Once they were shown the options, 67% said they would be able to buy a house sooner than they thought.
Any change must support access to advice. The case for advice has never been stronger
The role of housing counselors in educating potential FTBs could not be clearer. But the challenge is to get in front of this group in the first place. As regulators review lending rules and the consumer journey, the industry must continue to make the case that better consumer outcomes come not from passing advice but from ensuring more people can get it sooner.
The Financial Conduct Authority will soon consult on suitable lending as part of the Mortgage Rule Review, and Ami is involved in that process. We support exploring how the rules can better help FTBs and underserved groups, whether by looking at rental payment history to assess affordability, dealing with variable income and poor credit, or by evaluating products with a small start.
Avoidable injuries
But any change must support the availability of advice. Consumer Affairs emphasizes the importance of the ‘awareness gap’ — FTBs making ill-informed decisions about the biggest financial commitment in their lives is preventable damage that we should all be working to fix.
That case of advice has never been stronger, and time is of the essence. The FCA’s decision last year to relax the initial advice rule, allowing borrowers to explore options directly with lenders without being automatically referred to an adviser, makes the industry’s commitment to promoting advice even more important.
What concerns me most is that the desire to improve the results of FTBs is shared
The regulator still expects consumers to seek advice where appropriate. The question is whether the FTB recognizes the need for advice – after all, consumers often don’t know what they don’t know. This is why improving access to advice, and raising awareness of its importance, must remain central to any future reforms.
We are also waiting for a response from the Ministry of Housing, Communities and Local Government (MHCLG) regarding their discussions to regulate the purchase and sale of houses. In a recent roundtable with Baroness Taylor of MHCLG, I made the point that ‘creditworthiness’ should sit alongside ‘assetsworthiness’.
You can enter the numbers and simplify the transaction as much as you like, but, if buyers enter the process without understanding their loan options, without making a decision in principle and without talking to a consultant, the falling rates will not improve much. Mortgage advisors are essential in making the process work from the start. Their role goes beyond simply identifying suitable mortgage products.
Too many people still think that home ownership is beyond their reach without properly researching their options
Consultants also help buyers navigate the broader realities of the property itself, whether it’s understanding how the type or construction of a property can affect a borrower’s desire, recognizing potential problems early or helping buyers avoid costly mistakes. Early advice leads to faster decisions, fewer failed purchases and consumers who are ready to take action.
There’s also a long-term factor: today’s FTB, with an average age of 34 and a mortgage tenure of 30 to 35 years, is the homeowner of the future and possibly the borrower of the future. Advisors who build lasting relationships with this group will shape the future of our profession.
Through our work with the BSA and other trade bodies, discussions with government and wider industry discussions, what strikes me most is that the desire to improve the results of FTBs is genuinely shared. Ami’s role is to ensure that the advice community remains central to that conversation, and the importance of advice is evident during the broader housing transition.
The biggest hurdle facing potential first-time buyers is not always availability but awareness
When a buyer suddenly realizes that home ownership is possible after all, the next step should be to talk to a counselor. We need to make sure our doors are open and ready.
Stephanie Charman is chief executive of the Association of Mortgage Intermediaries
This article appeared in the June 2026 issue of Mortgage Strategy.
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