A survey commissioned by Habito, digital mortgage broker, revealed that 65% of people buying their first home in London, were terrified by the mortgage process.
The YouGov survey also revealed that London’s first time buyers are the most stressed and confused about mortgages in the UK. In May this year, a survey of 4,236 adults found that millions of people are failing to secure a mortgage, caused by a lack of trust in the market and professionals.
Too many options for mortgages was the problem for four out of five respondents, who said that the application process was overwhelming and it was stressful. The most extreme response was found in London, with first time buyers requiring a deposit of 15% so that they could cover the extra stamp duty costs. Just over half the respondents thought that it was too difficult to apply for a mortgage, although they were reluctant to seek professional help. However, mortgage advisers are professionally qualified, as they are required to undertake CeMAP training before being allowed to practice.
According to the founder and Chief Executive of Habito, Daniel Hegarty, “fearmongering” following the Brexit vote has made the confusion even worse for first time buyers. He added that although the next few years may seem uncertain, the interest rates are at their lowest right now, and it is the best time to sort out a mortgage. According to the official data for house prices, the average cost of a home in London is £472,000.