"Our report highlights how many people believe they have low or no appeal to mortgage lenders; they have little faith in the market."
The study - comprising two surveys of over 2,000 UK adults, in July 2017 - found that almost two in three (65%) people polled believe that getting a mortgage is about ‘box ticking’ not the reality of someone’s situation. This opinion has risen markedly by ten percentage points (from 55%) since the first poll in January.
Respondents’ perception of their ‘mortgage-appeal’ varied across the UK. Respondents in Wales have the strongest doubts - 72% believe they would find it hard to get a mortgage today, compared to 53% in Scotland. 68% of people in the East of England feel it would be hard, compared to 50% in Yorkshire & Humberside.
74% of people surveyed also feel that meeting repayment criteria should determine mortgage eligibility, not age, while 60% believe that everyone who can afford the repayments when they retire should be eligible for a mortgage. This view has risen up from 53% since the January poll.
61% predict the shortage of affordable homes will increase in the next five years and nearly three in five (58%) think the price difference between homes in the north and south of the UK will increase, but views vary - ranging from 79% in Newcastle to 44% in Cardiff.
Jon Hall, Managing Director of Masthaven, said: “Just as homes have kerb-appeal to buyers, it seems people have a perceived sense of their own mortgage-appeal to lenders. Our report highlights how many people believe they have low or no appeal to mortgage lenders; they have little faith in the market. Whether these homeowners’ beliefs are founded or not, the industry cannot ignore how customers feel – their perceptions need attention.
"I believe the industry can adapt, and we’re publishing the report to encourage lenders to look at the new face of home borrowing: ordinary people with normal lives. The UK mortgage industry must create products and processes that are fit-for-purpose for society today – a world that’s rapidly evolved and looks different to even just a few years ago.”
