Over one-third (35%) of aspiring homebuyers say that the fear of being rejected is the biggest barrier to applying for a mortgage, rising to nearly half (45%) of renters, according to new research from LendInvest.
For 29% of renters, not knowing how to apply for a mortgage is a significant barrier to starting the process, and the same is true for 20% of aspiring homebuyers.
Additionally, 21% say the impact on their credit score is a barrier and 14% don’t know of mortgage products that fit their situation.
The survey of 1,000 UK adults looking to purchase or remortgage a home within the next five years also found that over a third (34%) of respondents say that when it comes to buying a home, they don’t know what financial products and services are right for them.
Rod McPherson, head of distribution at LendInvest, said: “This data set confirms that fear of the unknown is often what puts people off from applying for a mortgage.
"The percentage of renters who feel this is also rather staggering, and it tells me that mortgage lenders and brokers need to do a better job of making sure that the first steps of the process are accessible and understandable.
"A good mortgage adviser can help any client, and sometimes that includes getting them on the right path to homeownership when approval doesn’t seem likely.
"As a specialist lender, all of us at LendInvest are committed to working with brokers directly to support their clients because we know that home ownership doesn’t have a ‘one-size fits all’ approach.”
