Research from LendInvest Mortgages has found that over one-third (35%) of aspiring homebuyers say that the fear of being rejected is the biggest barrier to applying for a mortgage. That figure jumps to nearly half (45%) of renters.
Elsewhere, the research found that for 29% of renters, not knowing how to apply for a mortgage is a significant barrier to starting the process, and the same is true for 20% of aspiring homebuyers.
Additionally, 21% say the impact on their credit score is a barrier, and 14% don’t know of mortgage products that fit their situation.
Conducted by Opinium Research, the survey of 1,000 UK adults looking to purchase or remortgage a home within the next 5 years also found that over one-third (34%) of respondents say that when it comes to buying a home, they don’t know what financial products and services are right for them.
Commenting on the research, Rod McPherson, Head of Distribution at LendInvest, says: “This data set confirms that fear of the unknown is often what puts people off from applying for a mortgage.
The percentage of renters who feel this is also rather staggering, and it tells me that mortgage lenders and brokers need to do a better job of making sure that the first steps of the process are accessible and understandable.
A good mortgage advisor can help any client, and sometimes that includes getting them on the right path to homeownership when approval doesn’t seem likely.
As a specialist lender, all of us at LendInvest are committed to working with brokers directly to support their clients because we know that home ownership doesn’t have a ‘one-size fits all’ approach.”
