Almost half of Scottish non-homeowners believe they will never buy
Almost half of Scottish adults who do not own a home believe they will never be able to, according to Pepper Money research published as the lender launches its first charge mortgage proposition in Scotland.
Almost half of Scottish adults who do not currently own their home believe they will never be able to, according to new research from Pepper Money.
The lender’s Scotland Specialist Lending Study found that 47% of non-homeowners believe homeownership will remain out of reach, rising to 55% among people with more complex incomes, including the self-employed, contractors and those with variable earnings.
The findings coincide with Pepper Money’s launch of its first charge mortgage proposition in Scotland, expanding its specialist lending offering for brokers and borrowers across the country.
More than one in 10 Scottish adults, at 11%, said they would like to buy a home but do not believe it is possible, rising to 15% among those who have experienced adverse credit.
A quarter of non-homeowners said they do not feel financially ready to purchase a property, while 19% believe it will take more than five years before they are in a position to buy.
Despite these barriers, 7% of Scottish adults said they plan to purchase a home to live in within the next year. This rises to 11% among self-employed respondents and 8% among those with adverse credit.
Affordability remains a significant concern, with 57% of Scottish adults saying house prices are increasing too quickly. Some 39% said the cost of living has affected their ability to purchase a home, while 30% cited rising household bills.
Among respondents who have experienced adverse credit, 42% said they are concerned about securing a mortgage and the same proportion expressed concerns about the mortgage application process.
The research also found that 31% of Scottish adults would want to use a mortgage broker when purchasing their next home, rising to 41% among those with adverse credit.
Among people with adverse credit who hope to purchase within the next 18 months, 61% said they would want to use a broker.
Paul Adams, director of sales at Pepper Money, said: “These findings show a clear gap between the aspiration to own a home and what many people in Scotland feel is achievable. Those who are self-employed, have variable income or have experienced credit difficulties can feel particularly locked out of the mortgage market, but this shouldn’t be the case.
“As we launch our First Charge mortgage proposition in Scotland, Pepper Money will work closely with brokers to help more customers understand what may be possible through specialist lending and what they need to do to take their next step towards homeownership.”
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