First-time buyers rethink careers to afford homes

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First-time buyers rethink careers to afford homes

First-time buyers are rethinking their careers in a bid to close a £21,646 income shortfall and secure a home, research suggests.

Aldermore’s First Time Buyer Index shows 35% of prospective buyers need to increase their annual salary by more than £21,000 to meet their property ambitions.

That’s necessary to deal with mortgage rates and house prices continuing to hit affordability.

Also, nearly two thirds (64%) of aspiring buyers say they are saving more than they first planned, pushing the expected average deposit to £48,168.

Reshaping their lives

The lender’s director of mortgages, Jon Cooper, said: “The UK’s first time buyers aren’t just tightening their belts, they’re rethinking their entire career paths to try and get on the ladder.

“From chasing pay rises to moving into different roles, prospective homebuyers are reshaping their working lives to secure a home of their own.”

He added: “Their ambition is as strong as ever, but the sacrifices they’re making are more significant.”

Buyers looking to switch roles

The research found 40% are looking for higher-paying roles, while 22% say they have negotiated a pay rise.

Another 21% have switched careers or are weighing it up, and 20% have moved jobs in pursuit of larger bonuses.

Around 17% have delayed leaving their current job to strengthen a mortgage application.

And 13% report entering or considering careers they do not enjoy to secure a purchase.

Will be paying more

Despite these efforts, expectations around monthly costs do not match reported outcomes.

Prospective buyers say they would commit 27% of their income to mortgage payments.

Existing homeowners who bought as first-time buyers report spending closer to 31% of their salary after tax.

The figure rises to 41% for those aged 18 to 24, and 37% for buyers living near London.

Aspiring buyers expect to be 37 before getting the keys, compared with 31 among recent first-time buyers.

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