Welcome to The Daily Dosh 🗓️

This is The Daily Dosh, your fortnightly guide to helping your customers get smart with their money and access powerful ways to boost engagement.

In our second edition, we’re exploring the key factors behind the difficulties aspiring homeowners face and how Yorkshire Building Society is leveraging Financial Education in the Mortgage and Home-Buying Process.

Let's dive in!

🧵4-minute read. Here’s what we’ll cover today: 

🤿 Deep Dive: The Uphill Battle for Homeownership: What’s Making It So Hard?

💭Thought of the Day: the UK has highest housing costs in the English-speaking world!

📚 Must Reads: Yorkshire Building Society’s Home Improvement Report and September’s UK House Price Index

Thought of the Day 💭

Did you know that… the UK has highest housing costs in the English-speaking world🌎

Brits spend nearly 26% of their disposable income on housing costs, compared to 24% in Australia and Canada.

Must Reads 📚

1. Yorkshire Building Society’s Home Improvement Report

2. September 2024: UK House Price Index

Deep Dive 🔍

The Uphill Battle for Homeownership: What’s Making It So Hard? 🏠

For generations, owning a home has symbolised financial security and independence, but in today’s market, that dream feels increasingly unattainable.

From soaring housing costs to confusing mortgage processes, prospective homeowners face more hurdles than ever before.

In this edition, we’re unpacking why buying a home is so difficult in 2024 and how innovative solutions are helping to level the playing field.

Housing Costs Are Through the Roof 💸

Let’s start with the most obvious challenge: the cost of housing.

Over the past decade, property prices have surged, leaving many would-be buyers priced out of the market. In some regions, house prices have increased by over 50% in the last ten years, while wages have stagnated, making it impossible for most people to keep up.

As a result, saving for a down payment—once considered a manageable milestone—now feels like a distant dream. For first-time buyers, particularly Gen Z and Millennials, this gap between income and property prices is more daunting than ever.

Renters are finding it hard to save while dealing with rising living costs, leaving them unable to put away the necessary deposit.

In fact, research suggests that it now takes the average person almost 10 years to save for a 20% down payment on a modest home.

The Complex Maze of Credit and Mortgages 💳📑

Even for those who manage to save enough, securing a mortgage is no straightforward task. Today’s financial landscape demands an in-depth understanding of credit, loans, and a bewildering array of mortgage products.

Prospective buyers often find themselves overwhelmed with questions: What’s my credit score? How much credit is enough? What’s the best mortgage for me?

Understanding how credit impacts mortgage eligibility is one of the trickiest aspects. Many potential homeowners struggle to figure out what mortgage they can realistically qualify for, and financial literacy around credit remains a huge obstacle.

Without clear guidance, the mortgage process feels like a guessing game, leaving buyers at the mercy of unpredictable lending decisions.

Rejections from Mortgages and the Lack of Feedback ❌

For those brave enough to go through the mortgage application process, rejection is a hard pill to swallow. But what makes it worse is the frustrating lack of feedback.

When banks decline mortgage applications, many provide no clear explanation or actionable steps to improve the chances of approval in the future.

This leaves aspiring homeowners in the dark, often wondering, What did I do wrong? What can I do next time?

This lack of transparency and support creates a cycle of uncertainty and stress, where buyers are left guessing how to fix issues with their credit score, income, or savings.

Without meaningful feedback, the path to homeownership becomes an uphill battle.

There is hope: How FinTechs are Disrupting Homebuying 🛠️

As housing costs soar and navigating mortgages grows increasingly complex, traditional banking systems are struggling to keep up with the needs of modern buyers.

Fortunately, FinTech companies are stepping in to fill the gaps. Unlike direct competitors, these FinTechs act as enablers, offering tools that traditional players like building societies can leverage to enhance their customer experience.

Let’s explore how FinTechs are transforming three critical aspects of the homebuying journey: savings, search, and knowledge.

1. Disrupting the Savings Journey 💰

Saving for a home is one of the biggest challenges buyers face, especially with property prices skyrocketing. FinTechs like Homely and Stepladder are helping prospective homeowners take the first steps towards saving for a deposit through innovative, community-based approaches.

• Homely: This platform offers a collaborative savings environment where users can set goals, track progress, and receive personalized advice on saving strategies. Homely enables institutions to offer customers a tailored savings experience that feels both supportive and achievable.

• Stepladder: Through a unique peer-to-peer savings model, Stepladder helps users save more efficiently by pooling resources with others. This approach, known as a rotating savings and credit association (ROSCA), is particularly useful for first-time buyers struggling to reach their deposit goals. They provide an alternative savings route, giving first-time buyers a practical path to homeownership.

2. Disrupting the Search Process 🔎

Finding the right mortgage deal is often a daunting task, with countless products and terms to compare. FinTechs like MoneyPark simplify this search, acting as an intermediary that connects clients with tailored mortgage and insurance solutions.

3. Disrupting Knowledge with Financial Education 📚

A significant barrier to homeownership is a lack of understanding about the mortgage process itself. This is where Doshi comes in, empowering users with financial knowledge and personalized education tools.

How Yorkshire Building Society is Leveraging Financial Education in the Mortgage and Home-Buying Process 🏠

Yorkshire Building Society (YBS) is breaking new ground with an innovative tool designed to help aspiring homeowners navigate the often-confusing mortgage and home-buying process.

The Challenge 💡

The Solution 🤝

Partnering with Doshi, YBS has launched an online learning program that guides users through every step of the home-buying journey—from understanding the basics of home ownership to mastering the mortgage application process. This tool is designed to demystify complex topics, making them accessible and engaging.

Key Features ✨

• Step-by-Step Guidance: Users are taken through the entire process, from preparing to buy a home to maintaining it post-purchase.

• Bite-Sized Learning: The program breaks down complex topics like freehold vs. leasehold, types of mortgages, and financial jargon into easy-to-digest modules.

• Accessible to All: Available on the YBS website, this tool is free for both customers and non-customers, ensuring broad access to essential financial education.

Why It Matters 🌟

This initiative by YBS is not just about education—it's about empowerment. By equipping would-be homeowners with the knowledge they need, YBS is helping to remove barriers to homeownership and build confidence in their financial decisions.

Partnering with Yorkshire Building Society to empower aspiring homeowners is a significant step toward making homeownership more accessible. Our program provides engaging, bite-sized guidance every step of the way

Stay Updated with Doshi

Thank you for taking the time to read today’s update. It means a lot to make sure our members are up to date so they can receive the most value possible.

If you’ve got some feedback about the Daily Dosh, ideas or you are interested in working with Doshi, then I’d love to hear your thoughts in your reply or book a call with me - Daniel, Founder @ Doshi