Nearly a third of potential buyers are
worried their mortgage application will be rejected but most are failing
to take steps to boost their chances, research showed today.
Around 28 per cent of people who hope to buy a property are not confident that their mortgage application will be approved first time, according to adviser search website unbiased.co.uk.
Concern is greatest among first-time buyers, with 38 per cent of people taking their first step on the property ladder worrying that their mortgage application will not be successful.
Overall, the group’s new Mortgage Approval Confidence Index currently sits at just 5.7 points out of a possible 10 points, reflecting how uncertain most consumers are about the mortgage application process.
But despite their concerns the majority of would-be buyers are failing to take any steps to boost their chances.
Only 28 per cent of people have checked their credit rating in preparation for submitting a mortgage application, while 25 per cent of potential buyers have taken steps to boost their credit rating.
Just one in four people have made a detailed analysis of all of their outgoings, something lenders are likely to want to do following new affordability criteria introduced as part of the Mortgage Market Review.
Around 23 per cent of people have carried out research on different mortgage providers to try to learn about their lending criteria, while 22 per cent have reduced their spending to cut down on their outgoings.
However, a third of prospective borrowers admitted they had not taken any steps to boost their chances of having their application accepted.
Just 19 per cent of prospective mortgage applicants had consulted a professional financial adviser about their application, although 27 per cent said they planned to do so.
But there are significant benefits in seeking advice, with 81 per cent of people who sought help having their application approved first time, despite the fact that one in five people using mortgage advisers had had their initial, non-advised application rejected.
Around 28 per cent of people who hope to buy a property are not confident that their mortgage application will be approved first time, according to adviser search website unbiased.co.uk.
Concern is greatest among first-time buyers, with 38 per cent of people taking their first step on the property ladder worrying that their mortgage application will not be successful.
Overall, the group’s new Mortgage Approval Confidence Index currently sits at just 5.7 points out of a possible 10 points, reflecting how uncertain most consumers are about the mortgage application process.
But despite their concerns the majority of would-be buyers are failing to take any steps to boost their chances.
Only 28 per cent of people have checked their credit rating in preparation for submitting a mortgage application, while 25 per cent of potential buyers have taken steps to boost their credit rating.
Just one in four people have made a detailed analysis of all of their outgoings, something lenders are likely to want to do following new affordability criteria introduced as part of the Mortgage Market Review.
Around 23 per cent of people have carried out research on different mortgage providers to try to learn about their lending criteria, while 22 per cent have reduced their spending to cut down on their outgoings.
However, a third of prospective borrowers admitted they had not taken any steps to boost their chances of having their application accepted.
Just 19 per cent of prospective mortgage applicants had consulted a professional financial adviser about their application, although 27 per cent said they planned to do so.
But there are significant benefits in seeking advice, with 81 per cent of people who sought help having their application approved first time, despite the fact that one in five people using mortgage advisers had had their initial, non-advised application rejected.
Karen Barrett, chief executive of
unbiased.co.uk, said: “It’s great that so many people are looking to get
on the property ladder, and the recent spate of good deals from
mortgage providers means this figure is likely to rise even higher.
“One big concern from this research is that so many people aren’t confident they’ll have a mortgage approved, and yet aren’t doing anything to increase their chances.
“Getting professional mortgage advice can make a huge difference to the process, from finding the best deal for your individual circumstances to planning specific steps to make you a more attractive candidate to a lender. Merely hoping for the best isn’t enough.”
Men are more confident about getting a mortgage than women, with 66 per cent of men expecting their application to be accepted, compared with just 50 per cent of women.
“One big concern from this research is that so many people aren’t confident they’ll have a mortgage approved, and yet aren’t doing anything to increase their chances.
“Getting professional mortgage advice can make a huge difference to the process, from finding the best deal for your individual circumstances to planning specific steps to make you a more attractive candidate to a lender. Merely hoping for the best isn’t enough.”
Men are more confident about getting a mortgage than women, with 66 per cent of men expecting their application to be accepted, compared with just 50 per cent of women.
But men are also more likely to have taken steps to
boost their chances with 73 per cent taking action to improve their
situation, compared with just 60 per cent of women.
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