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How building societies can attract first time home buyers

While seasoned buyers may have a mortgage provider of choice, first home buyers provide a fresh opportunity for building societies.

The average first-time buyer in England is now 34 years old, up from 32 just five years ago, highlighting how getting onto the property ladder is becoming increasingly challenging.

For many first-time buyers, the process of buying a home is wholly unfamiliar, which is where building societies can step in. If you’re able to provide extra guidance and helpful tools, you’ll be able to stand out from the competition.

In this article, we’ll explore how building societies can attract more first-time buyers through tried-and-true methods in marketing, sales, and retention tactics.

first home owners

Key takeaways

  • First home buyers represent a major growth opportunity for building societies.

  • Younger buyers expect online document sharing, eSignatures and real-time updates throughout the mortgage journey.

  • Practical resources can help you reach buyers while they’re still researching.

  • A great experience increases loyalty and opportunities to support members throughout their financial lives.

What makes first home buyers different?

It’s undeniable that the way first home buyers interact with mortgage providers has changed due to rising costs and stagnant salaries.

While this is the part we all know, it’s worth examining how this impacts the buying process. Compared to previous generations, today’s first home buyers are:

Buying later in life

The average first-time buyer in England is now five years older than in the late 1990s.

As a result, they are often renting and balancing other financial commitments. In particular, 69% of Gen Z and 66% of Millennials in the UK have invested in some form, compared to only half of their older counterparts.

Saving for longer

The average first-time buyer deposit is now £78,131, while the median deposit sits at £36,500. Plus, almost one in three buyers also receive financial support from family or friends.

Due to this, buyers feel a heavy sense of responsibility investing so much of their own or family’s money. This pressure leads to first home buyers looking for more reassurance that they’re making the right decision.

Researching before making contact

Twenty years ago, many buyers would have started by visiting a branch or speaking with a mortgage adviser.

Today, they’re far more likely to compare lenders online and consume educational content before making an enquiry.

By the time they reach out, they’ve often narrowed down their options, making your marketing presence as important as your sales team.

Expecting digital convenience

Online applications, secure document uploads, digital identity verification and quick updates are the expectation for younger generations. Building societies need to provide an experience that matches the world younger buyers operate within.

Why are building societies a strong choice for first home buyers?

Building societies provide great options to first home buyers because they’re member-owned, often offer more personalised support, and have a strong track record of helping people onto the property ladder.

Many building societies, including Nationwide, Skipton, Yorkshire and Coventry Building Society, offer mortgages specifically designed for first home buyers, alongside digital experiences tailored to their needs.

Combined with competitive products and trusted advice, building societies can provide the support that big banks simply can’t.

Marketing ideas to attract first-time buyers

We’ve mentioned that first home buyers now do plenty of research online, but how do you make sure it’s with your brand?

Across all of these marketing tactics, first home buyers want to feel welcomed and understood. Many have the feeling that homeownership isn’t tailored towards them, which you can dispel by creating specific content targeted towards them.

Here are a few ideas you could implement to attract first home buyers to your building society.

  • Mortgage calculators

  • A dedicated first home buyer hub

  • first home buyer case studies and success stories

  • Short-form videos on the platforms younger generations use most

  • An interactive mortgage jargon dictionary

  • Content comparing renting with homeownership, alongside practical tips for making the move

  • Adviser Q&A videos answering common first home buyer questions

  • University graduate events to engage potential buyers early

  • Moving home toolkits with checklists and helpful resources

  • A “Mortgage Health Score” quiz showing buyers how mortgage-ready they are and what steps they can take to improve

  • Welcome packs or small gifts for new homeowners to create a memorable experience and encourage word-of-mouth and social media sharing

Even before buyers are ready, it can be beneficial to get on their radar and have a positive impression. Then in five to 15 years, when they are ready to buy, you’ll have an edge.

Adapting sales tactics for first home buyers

By the time first home buyers speak to your team, they’ve often done weeks of research.

Rather than going in for the hard selling, your focus should be on building their confidence and making the process feel simple.

Some ways to do this include:

  • Sending regular text and email updates instead of only relying on phone calls.

  • Remembering to use plain English instead of mortgage jargon.

  • Setting clear expectations about what happens next.

  • Offering flexible appointments, including video calls and evening availability.

  • Making it easy to upload documents and track application progress online.

  • Providing checklists and calculators to simplify the application process.

  • Taking the time to answer questions, even if they seem basic.

  • Following up after approval to continue building the relationship.

Offering digital pathways fit for future homeowners

first home buyers are digital first. This means that they expect the mortgage journey to be as straightforward as every other service they use. If applying for a mortgage feels harder than opening a bank account or making an investment, they’ll look for easier options.

Legado’s Building Society report found that 72% of members already use digital channels to manage their accounts, while 80% would be happy to sign documents digitally. However, only 18% of building societies say members can complete most key tasks online, highlighting a clear gap between customer expectations and the current experience.

To close that gap, building societies should focus on removing friction throughout the mortgage journey by:

For many first home buyers, your digital experience is your first impression. Making the journey transparent and connected can be just as important as offering a competitive mortgage.

Turning first home buyers into lifelong advocates

First home buyers have a lifetime of homeownership ahead of them. If their experience is positive, they’re far more likely to stay with your organisation as their financial needs evolve.

It also drives word-of-mouth, which is the lowest-cost, highest-return form of marketing. This works especially well as building society members are more likely to recommend their provider than bank customers (83% compared to 71%), while those with a mortgage from a building society report 93% satisfaction compared to only 80% for banks.

The key is to keep the door open after the sale is complete. Consider small gestures like sending a small gift or flowers to their new home. Then, in the years to come, aim to do annual check-ins, provide ongoing personalised and relevant financial guidance, and always make the communication around things like interest rate changes smooth and digital-first.

Supporting the next generation of homeowners

first home buyers appreciate clear guidance, a modern digital experience, and a lender they can trust throughout the buying journey. Building societies that invest in these areas will be better positioned to attract today’s buyers and build relationships that last well into the future.

Want to learn how your building society can create a smoother mortgage journey for first home buyers? Book a discovery call with our team to see Legado’s document management, member communications and e-signing solutions.

FAQs

What support do building societies provide to first home buyers?

UK building societies now provide almost 4 in 10 first-time buyer mortgages. This is due to building societies offering more specialist first-time buyer mortgages, including low-deposit products, shared ownership options and tailored lending for people with non-traditional incomes.

Many also offer helpful tools like mortgage advisers, affordability calculators and government schemes.

What are the advantages of selling to first home owners?

First home buyers are a high-long-term-value segment because they’re at the start of their financial journey. A positive first mortgage experience can lead to long-term relationships spanning remortgaging, savings, insurance and future lending.

How do mortgages for first-time buyers differ between Scotland and England?

Mortgage options are broadly similar across the UK, but the buying process is different. Scotland uses a different legal system, requires sellers to provide a Home Report, while England has its own conveyancing process and schemes such as First Homes and Shared Ownership.

What deposit do first home buyers in the UK need for a mortgage from a building society?

Most building societies require a minimum 5% deposit, although saving 10% or more will usually give you access to better mortgage rates.

Many lenders also offer products designed to help buyers with smaller deposits. For example, Nationwide Building Society offers 95% loan-to-value mortgages, Yorkshire Building Society has a £5,000 Deposit Mortgage, and Skipton Building Society offers its Track Record Mortgage, which allows eligible renters to buy with no deposit by using their rental payment history instead.