Over 50% of homeowners in the UK believe that they would struggle to obtain a mortgage in the current climate, according to recent research.
The study, which was produced by Masthaven, a challenger bank, revealed that 60% of respondents felt that they would face difficulties trying to get a mortgage, despite having previously obtained one successfully. Masthaven’s managing director, Jon Hall, said:
“Our report highlights how many people believe they have low or no appeal to mortgage lenders – they have little faith in the market.”
In April 2014, the Mortgage Market Review was introduced, subjecting borrowers to far stricter lending criteria than before. Some borrowers find that they struggle to secure a new mortgage, despite their circumstances remaining the same, as they don’t meet the revised criteria.
The Game of Loans report shows that 80% of respondents believe that lenders should aim to have an understanding of an individual’s circumstances, and is viewed strongly by those aged 55 and above. Almost three quarters of respondents think that eligibility should be decided by whether a borrower can meet the criteria for making repayments, rather than age. Three out of five respondents also believe that if a borrower can afford the mortgage repayments during retirement, they should be able to secure a mortgage.
Obtaining a mortgage can be a complex situation, but CeMAP qualified mortgage advisors have the necessary skills and knowledge to help buyers to secure a suitable product to buy a property.