An estimated 89% of mortgage advisers believe first-time buyers need more education on purchasing a property and what is needed for a mortgage application, according to Mortgage Advice Bureau (MAB).
In a recent survey of more than 200 mortgage advisers, MAB sought to discover some of the main sticking points advisers come across in first-time buyer mortgage applications.
The survey found 54% of advisers have first-time buyers approaching them ‘very often’ for advice before getting started on their mortgage applications.
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Looking into the reasons why prospective buyers approach mortgage advisers before starting their applications, the most common one was to find out how much they could borrow (96%), followed by finding out what they could afford in terms of monthly costs and budget (88%).
Other reasons why first-time buyers approach mortgage advisers include seeking advice on what would help them be accepted for a mortgage, such as getting on the electoral roll (41%), getting a credit check (33%), and to get advice on what government support schemes are available to them (27%).
Mortgage advisers also revealed the most common reasons they see for causing delays in first-time buyer mortgage applications. Lack of deposit or unrealistic aims in terms of affordability (78%) came out as the top reason.
Only 13% of advisers said that first-time buyers approached them for advice on how to boost their credit scores, yet poor credit scores (68%) was the second biggest reason for delays in mortgage applications, highlighting the need for more education for buyers looking to get on the property ladder.
Around 60% of advisers expect an issue or fault in an application to delay the process by an average of less than a month and 25% said they expect delays to be between one and two months.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Getting onto the property ladder is an exciting moment in anyone’s life, but many find it to be one of the most stressful experiences.
“It’s only when buyers start thinking seriously about purchasing a property that they realise what is required and so can be caught on the back foot.
“The mortgage application process isn’t something that is taught in schools and the majority of people are left to figure things out for themselves, which can make the process a little daunting.
“This is why MAB has created the Home Buying App to help alleviate some of the stress and anxiety first-time buyers may have when it comes to the home-buying journey.
“This app is there every step of the way to give prompts when needed and to share helpful tips with buyers who are starting or even thinking about the mortgage application process.”