Some 44% of first-time buyers secure a consultation with a mortgage adviser within two days of making an initial enquiry, research has shown.
A study of 1,000 first-time buyers conducted by Boon Brokers assessing the experience of clients found this was the most common response, suggesting advisers tended to act quickly.
Some 31% of respondents waited between three and five days to hear back from an adviser, with 11% waiting 6-10 days. Just 6% of respondents said they got a response from a broker the same day they made an enquiry.
The time it took for a first-time buyer to receive an agreement in principle (AIP) was similar, with 46% of respondents saying they waited 1-2 days after their consultation with a broker.
Most first-time buyers have speedy application experience
Nearly a third – 30% – said they received an AIP between three and five days, and 11% waited 6-10 days. A tenth of clients got their AIP the same day as their consultation.
Finding opportunity in your local first-time buyer market
Sponsored by Pepper Money
Boon Brokers said this was a positive reflection of broker efficiency despite some of the challenges faced when submitting an application, such as the need to verify documents, engage with lenders and process the application.
Regarding the time it took between a first-time buyer’s offer on a property being accepted and the submission of the full mortgage application, 47% of respondents waited 1-2 days before their broker completed this task.
The wait was between three and five days for 28% of first-time buyers, while 11% waited around 6-10 days. Just 6% of first-time buyers had to wait more than 10 days before their broker submitted a full mortgage application.
Again, Boon Brokers said this was “impressive” for advisers due to the steps required before submitting a full mortgage application. The firm said this included confirming that the client wanted to proceed with their illustration, view the property, reassess the market and potentially update income documentation.
Mortgage process slows down in lead-up to offer
Boon Brokers’ research showed a significant slowing-down in timescales when it came to first-time buyers receiving a mortgage offer.
Just 11% of clients got a mortgage offer in seven days or fewer, while 35% waited between eight and 14 days. A further 29% waited 15-21 days for their mortgage offer and 26% of first-time buyers waited more than three weeks.
Boon Brokers said this was the first part of the process that showed significant delays, noting that advisers were reliant on turnaround times from underwriters and surveyors.
Overall, from the initial enquiry to when an offer is issued, 43% of respondents said their process took 15-30 days – the most common response. Some 37% spent 31-60 days in the process, and only a tenth of people went through the whole process within 14 days.
Boon Brokers said this was a “strong outcome”, as despite the challenges and hurdles faced by brokers during the mortgage process, most completed their service within a month.
A quarter of first-time buyers were ‘very satisfied’ with the speed of the mortgage process, and 53% were ‘somewhat satisfied’. Some 16% felt neutral about it, and just 5% were dissatisfied.