Almost two-thirds of UK homeowners find mortgage process intimidating, study reveals

More than a third (37 percent) were kept awake by the mortgage process, while one in five admitted to crying because of it. But it also emerged that the impact of COVID-19 on their personal finances has made 28 percent fearful of their next mortgage application.

When buying a home, it is vital to not rush the process and to ensure you’re getting the right deal at the right time

James Tucker, CEO of Twenty7Tec

The research was carried out by mortgage technology company Twenty7Tec, which works with mortgage lenders and advisors to scan the market and help identify the best deals for home buyers.

CEO James Tucker said: “For most people, buying a home is their biggest ever purchase and parting with so much money can be a daunting and stressful experience.

“They want to feel secure in that process, safe in the knowledge that they are making the right decision – and seeking out the advice of a qualified mortgage professional gives you the best opportunity to do just that.

“With interest rates low at the moment, lenders are offering some incredible deals, and so for many, there has never been a better time to consider remortgaging.”

The research was carried out following a red-hot few months in the property market as restrictions were eased and buyers took advantage of the Chancellor’s stamp duty holiday.

In June, the government estimated there were around 200,000 UK residential transactions, an increase of 219 percent on the pandemic-affected June 2020, and 74 percent higher than May this year.

It was the highest estimate since the introduction of these statistics in 2005.

The research by Twenty7Tec also found mortgage fears impact younger people the most, with 79 percent of 18- to 30-year-olds, many of whom taking their first step on the property ladder, finding the process stressful.

And 78 per cent find it confusing.

But it doesn’t necessarily get easier with age, with 49 percent of respondents aged 61 and over admitting they found it confusing.

Overall, 59 percent said they found getting a mortgage an intimidating process.

With house buying an arduous process for many, 69 percent think it should take less time, with a fifth adding that delays when purchasing their property stopped an important life event taking place.

James Tucker, the CEO of Twenty7Tec, added: “When buying a home, it is vital to not rush the process and to ensure you’re getting the right deal at the right time.

“Almost a fifth of the homeowners we spoke to said they had regretted the mortgage they had taken out, so getting sound advice from a professional can play a vital role in ensuring you’re comfortable with the deal you have.”


Source: Read Full Article