The importance attached to the advice process in sourcing appropriate and responsible solutions to combat the challenges of homebuying has never been more apparent, yet some potential borrowers continue to go it alone.
The limited availability of housing stock, coupled with rising demand, is driving house prices up across the UK. There is hope that positive housing support via the Planning Bill – as announced in the Queen’s Speech - will generate more affordable housing in key regions and other government-led initiatives are helping buyers onto, and up, the property ladder.
The struggles facing such borrowers were highlighted in research from NerdWallet, The financial comparison platform, and this makes for some interesting reading from a lender and intermediary perspective.
Their independent survey of over 500 UK mortgage-holders found that, on average:
· Prospective applicants dedicated 22 hours to researching mortgage options
· They spoke to just two lenders before applying
· 12% of mortgage holders had an application rejected in the past, despite receiving a mortgage in principle from the same lender
· 10% of applicants reported being rejected because they had taken advantage of loan repayment holidays
· 10% faced rejection because of pre-existing debt
· 8% have had an application rejected in the past because of their credit score
· 9% of applicants had their application rejected without knowing the reason why
Elsewhere, NerdWallet’s research showed that almost half (48%) of mortgage customers found the application process stressful, with 50% calling upon the help of a mortgage broker.
We know that mortgage brokers should always be the first port of call for borrowers but this is even more apparent in the current climate. And that having access to the right lenders and options when it comes to an array of residential lending solutions will prove crucial for such borrowers going forward.
So, if you would like to know more about our residential offering, then why not contact your Regional Account Manager
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