13th January 2014
Despite the UK property market enjoying a wave of growth well over a third of potential homebuyers are worried their application will be rejected.
According to new research by TSB, some 38% are concerned their mortgage application may not get accepted and of those looking for a new property, those under the age of 35 are the most concerned, with 66% anxious about their prospects.
People’s concerns vary quite significantly depending on where they live. Londoners, at 54% are the most concerned their application may get turned down, closely followed by aspiring homeowners in the Midlands, at 46% and south east at 40%.
In contrast, respondents in the north east of England and Yorkshire and the Humber were most confident, with less than a fifth, at 19%, indicating they are worried about the outcome of their application.
Consumers believe the greatest barrier to their mortgage application not being accepted is the level of their earnings, at 41. An unsatisfactory credit rating and an insufficient deposit were also common concerns among respondents.
Nearly a third at 32% of the younger generation also worry about their lack of understanding of how mortgages work. Females, at 20%, were also twice as likely to be worried about their lack of understanding of mortgages than men, with 11%.
When thinking about purchasing a property, half of potential homeowners visit a bank, building society or IFA as their first port of call, whilst nearly three quarters at 70% start their search for a property before they even know how much they can borrow.
Ian Ramsden, TSB’s director of mortgages, says: “Many aspiring homeowners are concerned their mortgage application may get declined. However, there are some easy actions that customers can take to improve their chances.
“In particular, anyone looking to buy should talk to a qualified mortgage adviser before beginning their property search. This will allow them to hunt in confidence safe in the knowledge that they can obtain an affordable mortgage deal.”
In order to maximise the chances of having a mortgage application accepted, would be homebuyers should following the following steps.