8 Jul

Mortgage reality better than Brits believe

Mortgage reality better than Brits believe

The reality of the mortgage market may be better than credit-crunched Britons think it is, according to one firm.

Unbiased.co.uk, the independent financial advisers directory, said that lending criteria has improved, with many lenders now offering up to four times a borrower's annual income.

However, many people are unaware of this fact, with the average potential borrower expecting to be able to get a mortgage only 3.1 times their salary.

Only 24 per cent estimated the correct level that they would be able to borrow.

David Elms, chief executive of Unbiased.co.uk, said it is "not surprising" that many people are off the mark when it comes to predicting the size of the mortgage they can apply for.

"The mortgage market has been going through tremendous change over the past year and lending criteria certainly isn't what it used to be. There is a lot of consumer confusion out there," he continued.

In other research by the firm, it was found that nearly five million homeowners are considering letting their properties out rather than selling them.

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