Over one-third (35%) of aspiring homebuyers named the fear of being rejected as the biggest barrier to applying for a mortgage, research from LendInvest Mortgages (LSE: LINV) has found.
That figure jumps to nearly half (45%) of renters.
Elsewhere, the research found that for 29% of renters, not knowing how to apply for a mortgage was a significant barrier to starting the process, and the same was true for 20% of aspiring homebuyers.
Additionally, 21% said the impact on their credit score was a barrier, and 14% didn’t know of mortgage products that fit their situation.
Conducted by Opinium Research, the survey also found that over one-third (34%) of respondents said that when it comes to buying a home, they don’t know what financial products and services are right for them.
Rod McPherson, head of distribution at LendInvest, said: “This data set confirms 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.
“A good mortgage advisor can help any client, and sometimes that includes getting them on the right path to homeownership when approval doesn’t seem likely.
“As a specialist lender, all of us at LendInvest are committed to working with brokers directly to support their clients because we know that home ownership doesn’t have a ‘one-size fits all’ approach.”
