For first-time buyers, preparation and realistic planning are key – it’s a major milestone in anyone’s life and making the right decisions are important.
Making sure you’re clued up on challenges and requirements can save you on time further down the line, so what should buyers be aware of before taking the plunge?
Affordability Remains the Key Challenge
Interest rates have started to stabilise in recent months but whether someone can actually afford a property or not is still the biggest hurdle when weighing up a purchase.
Because there has been such volatility in the market, mortgage lenders need to stress-test potential borrowers to ensure they can afford payments if rates rose. Lenders will look at:
- Taking account of monthly expenditure
- Outstanding loans and credit commitments
- Income calculations, with particular extra checks for self-employed applicants
Borrowing capacity might not always be as high as first time buyers think so it’s important to manage expectations and adjust budgets accordingly. Making changes like trying to improve your credit score early and reducing debt can put a buyer in a stronger position.
Deposit Expectations and Lending Criteria
High loan-to-value mortgages are more prominent in 2026, with a range of 95% products on the market. On paper, this might look like an appealing option but they can come with much higher interest rates and more hoops to jump through in terms of eligibility.
Lenders will value:
- Consistent employment history
- Clean credit profiles
- Evidence of savings habits
It’s likely that someone buying will have been gifted some portion of a deposit from family members, if this is the case then lenders need proof that this is a one-off gift and not a loan.
Not having a big deposit means that it’s even more crucial to keep financial records up to date and organised.
Energy Efficiency Is Influencing Decisions
Energy efficiency is even more of a priority to potential buyers in 2026. With energy prices being unstable and consumers being more environmentally conscious, first time buyers will be looking at:
- EPC ratings
- Insulation quality
- Double glazing
- Heating systems
Strong energy performance not only means more sustainable practices, but usually lower running costs for buyers too. Having an efficient property with lower monthly bills can be more important to a buyer than what a property looks like!
Lifestyle Priorities Have Changed
With the rise of hybrid working, buyer behaviour has also changed to reflect this. Buyers are looking for office space, access to green areas and decent transport links. Obviously, good transport links aren’t a new priority, but potential buyers are more likely to look for something that could be a bit further away from work and not as central because they won’t be commuting every day.
Flexibility is crucial and buyers are thinking about the balance of lifestyle and proximity to work.
Fewer Government Incentives
Help to Buy has been scrapped and there are fewer government support schemes in place for first time buyers, making the market feel more traditional.
There are shared ownership schemes for buyers who have been struggling to buy and some other targeted support, but buyers now have to rely more on good planning and creativity to buy. Which is why finding a good mortgage broker is even more valuable.
Using an Estate Agent
Working with an estate agent is about getting that extra reassurance and clarity in a confusing marketplace, which can be worth its weight in gold.
Transparent advice and clear steps to take is important for first time buyers who lack experience, so boosting confidence and having someone familiar with the process involved is ideal.
Homeownership may feel more unaffordable and complex in 2026, but it’s still attainable with the right support and advice.
By carefully preparing beforehand and having realistic expectations, first time buyers can feel confident making their first moves in the property market.
For more advice and info, get in touch with our team at Home EA today.
