Mortgage myths stop Brits from buying new homes

Michael Lloyd

May 21, 2018

Some 41% of Brits said that being declined a mortgage is an embarrassing secret that means they’d failed in life.

Many thought it worse than missing out on a promotion at work or being dumped by a partner.

Online Mortgage Advisor also found that the failure associated with being declined a mortgage would make a fifth of Brits think twice about trying.

David Bird, Online Mortgage Advisor, director, said: “Despite the value placed on owning a home showing no sign of changing, there are still major misconceptions about mortgage eligibility.

“Our research showed that people are avoiding pursuing their dream of getting on the property ladder because of outdated myths about what it takes to get approved.

“With 35% assuming they’re not eligible or don’t earn enough and 33% finding the process and advice confusing, and stressful, it’s fair to presume that a huge amount of people who could potentially own a property, are discounting themselves without even trying!”

One of the drivers of this trend is the fact that there are rapid changes in the world of work. While businesses look to embrace the fourth industrial revolution, globalisation and a growing gig economy, the way Britons make money is more varied than ever before.

When it comes to trying to get a mortgage, people living a varied working life might feel like a minority; but they’re a fast-growing minority and are leading the way for the rest of the country.

There’s over four million self-employed people in the UK country, many of which mistakenly think their varied income or lack of three years’ worth of accounts means they automatically don’t meet requirements for a mortgage.

Bird added: “No longer does everyone aspire to a nine-to-five with good benefits; a lot of people want to work for themselves, or for a variety of employers, choosing where and when they earn their living.

“Despite this fantastic pace of change, unfortunately the mortgage advice market hasn’t necessarily kept pace with these key economic and social developments.

“Advice varies enormously between brokers and criteria varies significantly from lender to lender. When one person goes to a broker that fails to secure a mortgage or applies directly to the wrong lender, they presume this goes for everyone and tell their friends and family so.

“Of course, there will still be some people who will face challenges for one reason or another, but the key to truly understanding your eligibility for a mortgage is getting the right advice for your situation.”

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