Underprepared first timers need Help to Buy
Only 40% of those planning to apply for Help to Buy are registered to the electoral roll at their current address, which can be a key factor in passing identity verification and ensuring credit report accuracy.
Of those aged between 20 and 40, 39% plan to apply to the Government’s Help to Buy scheme in 2014.
Peter Turner, managing director of Experian Consumer Services, UK & Ireland, said: “It’s important to remember that the deposit is only part of the equation and consideration must be given to how much you can afford to borrow – and crucially repay in the years to come.
“Anyone looking to make the most of Help to Buy would be well advised to check their credit report to better understand their credit history, and ask for help if needed to ensure your credit report paints the best possible picture before you make your application.”
A quarter of applicants have never checked their credit report, while 26% have saved less than the £5,000 required to partake in the Help to Buy scheme.
The Experian Help to Buy Hopefuls Insight Report is based on interviews with more than 2,000 20 to 40-year-olds.
Turner added: “Hopefuls should also note that in the short term, future applications for credit could be negatively impacted as lenders may want to see how well you are repaying your current credit commitments before offering you any more credit.
“Take this into account in your financial planning for the year ahead and, where possible, give the mortgage time to mature before making any future applications.”