Mortgages favour big deposit borrowers
More than a third (36%) said mortgages are too difficult to obtain for first-time buyers, as three quarters (76%) of renters between 18 and 24 saw saving a deposit as the biggest barrier to owning their own home.
The study also found that just 12% of UK adults found that mortgage access has improved over the past five years, down from 29% a year ago.
Alan Cleary, managing director of Precise Mortgages, said: “Prospective homebuyers are feeling more positive about their ability to save and find an affordable property, but with consumer sentiment towards mortgage accessibility falling in the last year, the industry has a vital job to do in reassuring prospective homeowners.
“The mortgage industry should serve prospective homebuyers, and we must dispel the belief that lenders continue to favour large deposits and are unforgiving of those with blemishes on their credit record.
“There are specialist lenders in the market ideally placed to help navigate the obstacles potential homebuyers face, but there is still more to be done across the wider industry. Ensuring that all viable homeowners have access to mortgage products should be the aim of the industry as a whole.”
Precise Mortgages recently improved its new build lending policy to give those left unserved by mainstream lenders a greater chance of securing the mortgage they need to purchase a new property.
Despite an uphill battle, 41% of those renting aged 18 to 24 still hoped to own their own home in the next five years. However only 14% of renters between 45 and 54 planned to own a property in the next five years, with the majority (67%) having no aspirations to be a homeowner.