23 Mar

Buyers not confident about mortgage application

Buyers not confident about mortgage application

Many buyers are nervous their application for a mortgage will not be approved, according to the latest research.

A study by online financial advisor Unbiased found 28 per cent of wannabe buyers are not confident their application will be successful and this level falls even further for those purchasing a home for the first time at 38 per cent.

It also discovered only 27 per cent seek professional advice when applying, with 32 per cent not taking any steps to increase their chance of being accepted, despite not being confident.

In recent months, many mortgage providers have reduced their rates to try to attract more prospective buyers, but people remain worried they will not be approved for a new or increased loan.

There are a number of steps that new property owners could take to help boost their chances of success, including checking their credit rating, producing a detailed analysis of outgoings or consulting with a professional financial advisor.

"One big concern from this research is that so many people aren't confident they'll have a mortgage approved, and yet aren't doing anything to increase their chances," said Karen Barrett, chief executive of unbiased.co.uk.

She added: "Getting professional mortgage advice can make a huge difference to the process from finding the best deal for your individual circumstances to planning specific steps to make you a more attractive candidate to a lender. Merely hoping for the best isn't enough."

The research found men rank higher on the mortgage confidence index than women, with 66 per cent of male applicants being confident, compared to 50 per of females.

It would also appear men are more likely to take steps to improve their chances of success, with 73 per cent taking action before applying, compared to 60 per cent of females.ADNFCR-1222-ID-801780678-ADNFCR

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