Today, we’re joined by our marketing executive, Chloe. Chloe is a member of the LGBTQ+ community, and we’re going to discuss a topic which is very important to Chloe: creating avenues for fighting LGBTQ+ homelessness and how LGBTQ+ first-time buyers can get onto the property ladder.
Buying a first home can be challenging for anyone, but for LGBTQ+ individuals, there are unique obstacles to overcome. From finding inclusive lenders to navigating social biases, understanding the options available is crucial. With the right guidance and support, first-time buyers in the LGBTQ+ community can confidently take steps toward owning their own property.
Read here: Can I Still Get a Mortgage If I’ve Made Late Payments?
Understanding the LGBT Community in the UK
Statistics and Research
Could you talk a bit more about the LGBT community in the UK?
Absolutely. As of 2022, research has shown that 1.8 million people have identified as gay, lesbian, or bisexual. Research from Stonewall has shown that one in five LGBT people have experienced homelessness at least once in their life. Additionally, studies indicate that LGBTQ+ youth are particularly vulnerable, making support systems crucial.
Causes of Homelessness
Oh, can I ask why that may be?
Absolutely. A lot of LGBT people, when they come out or let their families know that they are part of the LGBT community, do actually get asked to leave their home. They face abuse, discrimination, or rejection. Lack of family support combined with social stigma often leads to higher rates of homelessness among LGBTQ+ individuals.
Financial Barriers
So, I suppose then it makes it difficult for them to potentially get a bank account, credit, or build a financial profile. This can ultimately prevent them from saving a deposit and potentially getting a mortgage in the future.
With 56% of first-time buyers in general having to lean on family members to afford a property, this makes it even more difficult for the LGBT community to actually afford one. Additionally, limited access to financial education and inclusive lending options can create further obstacles.
Bank of Mum and Dad
I agree with that, because the “Bank of Mum and Dad” is probably one of the biggest deposit contributors in the UK for first-time buyers. For LGBTQ+ individuals without family support, alternative funding options, grants, or LGBTQ+ friendly mortgage schemes can be explored.
Challenges Beyond Homelessness
Facing Discrimination
So, we discussed homelessness. Is there anything else that the LGBT community faces currently?
Yes. They are more likely to face discrimination from estate agents, solicitors, and housing advisors purely for being part of the LGBT community. One in four trans people have actually faced discrimination when trying to buy a property due to such issues.
Importance of Support
It’s very important that the LGBT community gets the right support so they can get onto the property ladder. Supportive networks, inclusive financial advice, and awareness among housing professionals can make a significant difference.
Solutions for LGBT First-Time Buyers
Government Help for Deposits
Now we’ll be answering some questions around getting onto the property ladder as an LGBT community member.
So, Gindy, what can LGBTQ+ people do to afford a housing deposit?
So, CL, what I’ll do is look at what government help is available. The government offers a Lifetime ISA. With a Lifetime ISA, the more you contribute, the more bonus you effectively get, and this can be used as a deposit towards a property purchase.
There are also some specialist home buying schemes available. For example, Deposit Unlock allows buying a new build property with a 5% deposit, which can be combined with the Lifetime ISA.
Role of Mortgage Brokers
So, how can working with a mortgage broker help an LGBTQ+ client secure a property more effectively?
Working with a broker, versus going directly to a bank, gives access to a large number of home buying schemes and lenders. If your credit has been impaired previously and you’ve been declined by a bank, a broker can access over 100 different lenders.
Even if you are rejected by your bank, a broker can provide over 100 different products. For example, if you have a CCJ, defaults, or late payments in your history, specialist lenders available through brokers can help you get onto the property ladder.
Choosing the Right Brokerage
It’s also important, Chloe, that the individual speaks to the right brokerage. By “right brokerage,” I mean checking the core values of the firm and seeing if they align with the individual. We’ve talked about the discrimination that the LGBT community faces, which is appalling, but not all firms are like that. I can guarantee that Create Bance does not have any discriminatory beliefs whatsoever.
That’s wonderful to hear.
Practical Advice for LGBT First-Time Buyers
Finding the Right Property
So, what advice would you give to an LGBT first-time buyer on finding a property?
Well, firstly, I would say identify the area that you are looking to buy in, but make sure it’s a safe and friendly neighborhood for you. I would do this by asking estate agents. Don’t limit yourself to just one estate agent; ask multiple agents because one agent could be trying to block you from a property. Also, go and visit the neighborhood to get a feel for the area. Once you’ve done that, get in contact with a broker, who will be able to go through some mortgage options with you.
Thank you. I’ll definitely be using those tips.
Strengthening the Mortgage Application
So, what can LGBT first-time buyers do to help their application further?
On that, the most important aspect of getting a mortgage is how your credit report looks. Lenders will perform a credit search or check your credit score. My advice would be to send it across to a broker, let the broker review it for you, and they’ll be able to give you the right options available.
Brilliant. Thank you very much, Gindy.
Conclusion
So, there we go. We’ve seen some very, very important issues today, especially for the LGBT community, and how they can get onto the property ladder.
By understanding the challenges, seeking the right support, and exploring available government schemes and specialist lenders, LGBT first-time buyers can take confident steps toward owning their own property. It’s all about being informed, prepared, and knowing where to turn for guidance and assistance.
Frequently Asked Questions
1. What government help is available for LGBT first-time buyers?
The government offers a Lifetime ISA, which gives a bonus on your savings that can be used as a deposit. There are also specialist schemes like Deposit Unlock, which allow buying a new build property with a 5% deposit.
2. How can a mortgage broker help LGBT buyers?
A broker has access to a wide range of lenders and home buying schemes. If your credit has been previously impaired, they can find specialist lenders who will consider your application, giving you a better chance of getting on the property ladder.
3. What should I look for in a brokerage?
Check the firm’s core values and make sure they align with you. Not all firms are discriminatory, and finding one that supports the LGBT community is crucial for a smooth experience.
4. How do I find a safe and friendly neighborhood?
Ask multiple estate agents for advice and visit the neighborhood yourself. Get a feel for the area and make sure it’s safe and welcoming before committing.
5. How can I strengthen my mortgage application?
The key is your credit report. Share it with a broker who can review it and guide you toward the right mortgage options. This helps even if you’ve had defaults, late payments, or other credit issues in the past.
