‘Fear of rejection’ biggest barrier for one in three aspiring buyers

Over one third (35%) of aspiring homebuyers have said that the fear of being rejected is the biggest barrier to applying for a mortgage, according to new research from LendInvest Mortgages.

The lender highlighted that the figure jumped to 45% of renters.

LendInvest’s research, based on an Opinium survey of 1,000 UK adults, found that for 29% of renters, not knowing how to apply for a mortgage was a significant barrier to starting the process, while the same was true for 20% of aspiring homebuyers.

The study indicated that 21% of aspiring buyers believe the impact on their credit score is a barrier, while 14% did not know of mortgage products that fit their situation.

Head of distribution at LendInvest, Rod McPherson, suggested the findings had confirmed that “fear of the unknown” is often what puts people off from applying for a mortgage.

“The percentage of renters who feel this is also rather staggering, and it tells me that mortgage lenders and brokers need to do a better job of making sure that the first steps of the process are accessible and understandable,” McPherson added.

“A good mortgage adviser can help any client, and sometimes that includes getting them on the right path to homeownership when approval doesn’t seem likely.”



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