The majority of first-time buyers (FTBs) in the UK have worries about making their first property purchase. That’s according to new research by online mortgage broker Habito.
What Mortgage reported on the findings, noting that just three per cent of those questioned said that they didn’t have any worries about getting on the housing ladder.
But when you look at the housing market in the UK, it’s easy to see why so many FTBs are getting stressed or worried. For instance, the survey found that nearly half of all buyers in the 18 to 34 age bracket had to make offers on more than one property.
In London, it’s common for prospective buyers to make offers on three or four properties before a deal actually goes ahead. 20 per cent of young buyers are also waiting for more than six months to receive acceptance for an offer they’ve put in on a property.
Overall, the cost of the purchase and the process itself was found to be the biggest concern among FTBs, with 65 per cent stating that this was their main worry. However, next on the list is the uncertainty from not having definitive moving dates or the guarantee that a sale will go through until contracts are exchanged.
Nearly half of the young people questioned said that this lack of certainty was causing them stress. One third of those who answered the survey also said that being stuck in a chain or other delays that slowed down the process was a concern.
Habito founder and CEO Daniel Hegarty commented: “The fact that uncertainty around the mortgage process, the time it takes and the fear of something going wrong are impacting 5.4 million homeowners is a shocking indictment of the home financing process as it stands today.”
One way to reduce the stress of the house moving process is to find conveyancing solicitors that you trust. When you have experienced legal professionals working on your behalf, it can make the process run more smoothly and mean you aren’t bothered by some of the smaller issues that can arise.
Another survey recently revealed that, when it comes to funding a house purchase, half of mortgage brokers admitted that they’ve helped FTBs to stretch the affordability limits when applying for a mortgage.
The Mortgage Solutions poll found that they’ve done this by offering them advice on how to increase their affordability and appeal to mortgage lenders.
Speaking to the publication, Robert Winfield, managing director at Chartwell Funding Limited, said that it’s important to make the distinction between offering tips to help people get the mortgage they need, and encouraging them to overstretch themselves financially.
“It is a dilemma when helping clients to maximise their borrowing as to how much we coach them,” he stated.
Mr Winfield explained that tips like spending on a credit card and paying it off in full each month to help boost your credit rating are simple things that FTBs can do to increase their chances of their mortgage application being looked on favourably by lenders.