First-time buyer pressures are becoming more visible in the data. Reallymoving says 34% of London first-time buyer purchases now exceed the £450,000 Lifetime ISA property-price cap, up from 25.7% when the product launched in 2017. Separate research indicates that many aspiring buyers are relying on gifted deposits and additional work to build a deposit, while debate continues over stamp duty reform and the detail of a new first-time buyer scheme.
Advisers should treat this as a joined-up planning issue rather than solely a mortgage sourcing exercise. AI can help organise evidence of irregular or multiple income streams, model deposit pathways and produce scenario comparisons. Yet it should not make assumptions about acceptable income, gift provenance, lender policy or scheme eligibility; these require up-to-date criteria and adviser judgement.
Key client checks:
- Whether the chosen property may cause a Lifetime ISA withdrawal penalty.
- How gifts, side income, student loans and committed expenditure affect affordability.
- Whether stamp duty, moving costs and legal fees have been included in the cash budget.