However, of those who had already applied for a mortgage, less than half of this number (17%) actually found it difficult to provide all the information required.
The release of the research coincides with the anniversary MMR, and demonstrates the contrast in consumer perceptions about the mortgage application process and the reality of the property purchase process since the new rules came into effect.
Lisa Hardstaff, Equifax's Credit Information Expert, said:
“It seems that the affordability rules, introduced as a result of the Mortgage Market Review, are having less of an impact on the application process than was originally anticipated – and than homebuyers might expect."
As well as fears about information-gathering being unfounded, the Equifax and What Mortgage research has also identified that only 40% of home buyers found the process slower as a result of the new rules than they expected. Only just over 1 in 10 actually found they had over-estimated what they could borrow.
Jo Atkin, Editor of What Mortgage, added:
“The results of the new research identify some common misperceptions around the mortgage application process.
“From the level of financial information required by lenders; the amount that can be borrowed to the length of time the mortgage application process can take. This should give lenders and intermediaries a useful barometer to understand where there are gaps in understanding and how homebuyers planning to apply for a mortgage can be supported.”
Additionally, over a half of homeowners in the process of a mortgage application were either not aware of the new rules or how this would impact them (60%).
Yet almost half (48%) of prospective mortgage applicants believe that the new mortgage affordability rules will help prevent homeowners from over-stretching themselves.
Only 12% of mortgage applicants expected to be asked about their retirement plans when applying for a mortgage.
Lisa Hardstaff added:
“Our research provides a useful insight into perceptions of potential home buyers and their understanding of the mortgage application process.
“The key thing for those considering applying for a mortgage is to be ‘mortgage ready’ and prepared to show evidence of all income, expenditure and to be realistic about what is affordable.
“A lender will typically look at an applicant’s credit history when determining whether they meet eligibility criteria and may also use credit information during affordability assessments. Therefore, requesting a copy of their credit file ahead of starting the application process is a useful step for prospective homebuyers.”
