Cumbrian first-time buyers find it harder to get on the property ladder than they would in other parts of the country, according to new research by The Cumberland.

Analysis by the building society showed that first-time buyers accounted for only 44 per cent of all homes bought with a mortgage locally in the first 10 months of 2018. 

Last year’s figures also saw a drop in first-time buyers compared to the same period 12 months earlier.
Yet nationally, a recent report suggested that first-time buyers were at their highest level for 20 years - accounting for half of all homes bought with a mortgage - and double what they were in 2008.

The building society believes that a number of Government-supported help to buy schemes have helped, but their impact appears to have been less in Cumbria.

The Cumberland claims people may be put off stepping onto the housing ladder because they perceive it to be difficult or unaffordable. 

This has prompted the launch of its new initiative, aimed at first-time buyers. 
It offers a £1,000 cashback incentive, in addition to mortgages that require only a five per cent deposit.

This means that to purchase a property costing £80,000, a first-time buyer would need a deposit of £4,000, and they’d get £1,000 back when they complete the purchase.

David Stewart, The Cumberland’s area sales manager, claimed some people have a ‘mind block’ which puts them off becoming homeowners.

“Many people think it’s difficult to buy their first home, and there’s a common perception that it’s costly. This is completely understandable,” he explained. 

“However, there is a lot of help available, from savings accounts that pay bonuses to mortgages that require just five per cent deposit. It’s a lot easier to buy your first home than it has been but if you’ve never done it before you can’t be expected to know this.

“We do find that a lot of people come to us in rented accommodation and are surprised to find that it’s as expensive as a mortgage is.

“In Carlisle, for example, you can buy a two bedroom terraced property for £60-70,000 so you are not looking at a massive deposit for those properties,” he added.

The Cumberland is encouraging more people to see a mortgage advisor as early as possible so that they can find out about the different schemes and options available. 

Callum Hind, 26, recently bought his first home through the building society. 

He said: “A lot of media coverage is quite negative about getting on the property ladder, and it is daunting as it’s the biggest purchase you’ll make. 

“But my advice would be that it was a lot simpler than what I thought, and I didn’t realise how easy it would be to get an advisor to take me through step by step.”