Of those looking for a new property, younger buyers (under the age of 35) are the most concerned (66%).
People’s concerns vary quite significantly depending on where they live. Londoners are most concerned their application may get rejected (54%), closely followed by aspiring homeowners in the Midlands (46%) and south east (40%). In contrast, respondents in the north east of England and Yorkshire & the Humber were most confident, with less than a fifth (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 (41%). An unsatisfactory credit rating (24%) and an insufficient deposit (23%) were also common concerns among respondents.
Nearly a third (32%) of the younger generation also worry about their lack of understanding of how mortgages work. Females (20%) were also twice as likely to be worried about their lack of understanding of mortgages than men (11%).
When thinking about purchasing a property, half (50%) of potential homeowners visit a bank, building society or IFA as their first port of call, whilst nearly three quarters (70%) start their search for a property before they even know how much they can borrow.
The younger generation (under the age of 35) are more likely to check their credit rating ahead of buying a property with a fifth (21%) of those under 35 years checking their credit file before they buy. This compares to just six per cent of those aged over 45 years.
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.”
