Half (50%) of UK homeowners believe that they would find it hard to get a mortgage today, a new survey has revealed.
The report by challenger bank Masthaven has found that overall three in five respondents (60%) believed that they would find it hard to get a mortgage today, while almost two in three (65%) felt that getting a mortgage was about ‘box ticking’ and not the reality of someone’s situation.
More than four-fifths (81%) of respondents believed that lenders should make an effort to understand homebuyers’ individual circumstances.
“Just as homes have kerb appeal to buyers, it seems people have a perceived sense of their own mortgage appeal to lenders,” said Jon Hall, managing director of Masthaven (pictured above).
Nearly three in four (74%) said they felt that meeting repayment criteria should determine mortgage eligibility, not age, while three in five (60%) believed that anyone who could afford the repayments when they retire should be eligible for a mortgage.
Jon added: “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.
“It shouldn’t be ‘game over’ for many homebuyers before they’ve even put a foot on the property ladder.
“I’m concerned to hear so many borrowers feel unsupported when in reality an experienced lender – with flexible processes and great broker partnerships – may be able to help.”
More than two in three (67%) thought that UK interest rates would increase in the next five years, while almost a third (32%) believed the average wage of homeowners will decrease in the same period.
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