With over 70% without a mortgage and nearly half of them in a professional or Director/Manager position, Rising Metropolitans present a great opportunity in the first time buyer market.
So, who are they?
According to CACI (February 2020) about 5 million of the total UK population are classified as a Rising Metropolitan.
CACI’s research indicates that their average age is 30. Usually in the early stages of their career, their household income is estimated at £42k.
With high outgoings from rent and aspirational lifestyles, they are more likely to have loans. And, are more likely to live in privately rented flats in areas where property prices are higher.
They do manage to save though and are more likely to be saving a lot.
And, how can we engage them?
As part of its strategic commitment to helping first time buyers, Principality has been testing a range of different products with different sectors to provide more bespoke options for a variety of home buyers.
As the result of the research data and the results of its product development activity, it has introduced a 5.5X loan to income across its standard residential mortgage range for newly qualified professionals (NQP), a large proportion of the Rising Metropolitan group.
If they have qualified in the last five years, accountants, actuaries, architects, barristers, dentists, doctors, optometrists, pharmacists, solicitors, surveyors and vets in England and Wales can all benefit.
The aim is to give brokers as much choice as possible to help these clients buy their first home.
With average house prices in the UK at a record high of £281,161* in April 2022 according to HM Land Registry, a rise of 12.4% in a year, NQPs need all the support that’s available.
There’s plenty more information for brokers about our the new NQP proposition on our dedicated webpage.