If you said no, you probably don’t live in London.
A recent study we conducted with YouGov revealed two-thirds of first time buyers living in London are terrified of getting a mortgage.
Worryingly a lack of trust in professionals and the market is preventing millions from securing an affordable mortgage deal as 42% of first time buyers are choosing to seek advice from friends and family with only 4% opting to trust a mortgage broker.
The Office of National Statistics released its House Price Index, showing a £50K drop in London house prices. Despite the decrease, London hasn’t seen a surge in mortgage applications as mis-informed first time buyers are too scared to even start. And of the millions that do have a mortgage found it to be one of the most stressful experiences of their lives.
The problem is there’s a widespread lack of understanding of the mortgage process and the overwhelming amount of information available online is impenetrable and often incorrect. As a result, 57% of Britons believe getting a mortgage is too hard. For an average house in London (£472,000), first time buyers need an estimated 15% deposit to cover additional costs like stamp duty — a figure often left out of online calculators.
This is exactly why habito was set up. Our founder, Daniel Hegarty experienced first-hand how difficult it was to acquire a mortgage, nearly losing his house in the process. He knew there had to be a better way. Digitising as much of the application process as possible is the first step in improving the experience for consumers.
While post-Brexit fearmongering has just made the landscape more confusing for homebuyers, it shouldn’t stop consumers from looking at their options. Hegarty explains why:
“Whilst we’re in for a bumpy few years as the market finds its feet again, interest rates are at historic lows, so now is a great to time to be looking at your mortgage options. The real problem is that people are afraid of their finances and finding the right mortgage product is like finding a needle in a haystack. But it’s time to stop burying our heads in the sand, as the experience doesn’t have to be terrifying if we’re willing to take control of our finances.”
So if you’re thinking about getting on the property ladder for the first time, don’t let the fear stop you.
Habito is the UK’s digital mortgage broker, using technology to bring the mortgage application process into the 21st century. Honest, transparent and easy, home buyers can be sure they’re getting the best mortgage on the market for the first time. No jargon, no fees and no misinformation.
Note: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 4236 adults, of which 1,258 were mortgage owners and 33 have a mortgage through shared ownership. The figures have been weighted and are representative of all GB adults (aged 18+). According to the ONS, the GB 18+ population is 49,501,761.
