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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.
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:
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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.