New research from Mortgage Advice Bureau (MAB) reveals how first time buyer concerns shift significantly by age - from hidden costs and mortgage rates to long-term maintenance worries.
Hidden costs are now one of the biggest barriers facing first time buyers, with younger generations increasingly anxious about unexpected expenses and financial instability. Almost a third (29%) of aspiring homeowners say hidden costs - such as Stamp Duty, solicitor fees and moving expenses - are among the biggest barriers to getting onto the property ladder.
However, the findings show concerns vary significantly depending on age and life stage. Among 18-24-year-olds, hidden costs emerge as the single biggest fear, with 38% citing them as a major concern. More than a third (36%) also worry about job and income insecurity, highlighting the financial uncertainty many Gen Z buyers feel as they attempt to enter the housing market.
For buyers aged 25-30, affordability pressures dominate. This group is the most sensitive to property prices, with 56% citing high house prices as a key concern, while 37% say rising mortgage rates are a major worry.
Meanwhile, older millennials aged 31-40 are more focused on the long-term financial responsibilities that come with owning a home. Over a third (36%) say unexpected repair costs are their biggest concern once they become homeowners, reflecting a shift from worries about buying a property to maintaining one.
MAB’s findings reveal how homeownership concerns evolve across generations:
- Gen Z buyers fear the upfront and hidden costs of purchasing a home
- Young millennials are focused on affordability and mortgage rates
- Older millennials are increasingly concerned about ongoing maintenance and repair costs.
However, the research also suggests many younger buyers may not realise products already exist to help address the affordability pressures they’re most worried about. Although buyers aged 25-30 were among the most aware of specialist mortgage products overall, awareness of newer affordability-focused options remained strikingly low across all younger age groups.
Just 19% of 25-30-year-olds and 15% of 18-24-year-olds had heard of track record mortgages, which use proof of rental payments to support affordability assessments. Awareness of part-and-part mortgages - designed to lower monthly mortgage repayments through a mix of repayment and interest-only borrowing - was similarly limited.
The findings highlight a significant knowledge gap among first time buyers, particularly at a time when lenders are introducing more flexible products designed to support affordability and lower-deposit borrowing.
Rachel Geddes, Strategic Lender Relationship Director, Mortgage Advice Bureau, said: “Our research shows there’s no longer a one-size-fits-all first time buyer journey. Every generation is facing a different set of financial pressures and priorities when it comes to getting onto the property ladder.
“Many of these concerns are completely understandable, particularly at a time when affordability pressures remain high and buyers are trying to navigate rising living costs alongside saving for a home. However, there are now far more flexible lending solutions and affordability-focused products available than many people realise, designed specifically to help first time buyers overcome some of these financial barriers.
“That’s why speaking to a broker earlier in the process can make such a difference. The right advice can help buyers understand what may already be achievable, giving them the confidence to take that first step onto the property ladder sooner.”
Sara Palmer, Sales and Distribution Director at Gen H, added: “This research reinforces what we see every day: everyone’s path onto the ladder looks different, but the market’s often inflexible mortgage products don’t always allow for this. There are so many aspiring homeowners out there who don’t feel recognised or supported by the mortgage industry, or who aren’t aware of the tools that exist, and that gap is keeping people locked in the rental cycle, missing out on opportunities to build community, wealth, and security.
“This research not only demonstrates the importance of mortgage product innovation, but the critical role played by the broker-client relationship. Brokers are perfectly positioned to connect aspiring buyers with the flexible, affordable options that can turn their long-shot homeownership dreams into reality. If I had a message for the respondents of this survey, it would be: there are options out there to support you. Talk to your broker, and let’s get you into a home."
