More First-Time Buyers Are Choosing 'Fixer-Uppers' And It Could Be the Smart Move
If you're a first-time buyer feeling priced out of the market, a fixer-upper might be worth a second look. Recent research from Nationwide reveals a growing trend: more first-time buyers are choosing properties that need work, and for good reason.
What the Research Shows
Buying a cheaper property that needed renovation enabled first-time buyers to achieve things they couldn't otherwise:
41% said it allowed them to buy in the location they actually wanted
30% were able to shape the home to their own tastes over time
23% used it as a way to increase the value of their property
22% were able to prepare the home for future plans, such as starting a family
It's a pragmatic approach that's helping buyers get onto the ladder in areas they genuinely want to live, rather than settling for somewhere less desirable just because it's move-in ready.
How It Works in Practice
Louis, 30, from Essex, is a great example of how this can work. He used Nationwide's Helping Hand mortgage to purchase his first home in Southend. By being able to borrow more through his mortgage, he was able to put down a smaller deposit, freeing up the savings he would otherwise have used for the deposit to fund the renovation work instead.
As Louis put it: "By being able to borrow more through my mortgage, I was able to put down a smaller deposit."
Could This Work for You?
The Nationwide Helping Hand mortgage is designed to support eligible first-time buyers by allowing them to borrow up to six times their income - a meaningful boost that can make the difference between getting on the ladder now or waiting years longer. Although Nationwide were the first to offer this scheme, plenty more have joined in, in offering enhanced lending to First Time Buyers.
If you're a first-time buyer and you'd like to explore whether this kind of approach could work for your situation, we'd love to help. At J Finance, we'll take the time to understand your goals and find the right mortgage solution for you.
Get in touch with our team today to find out more.