Experian findings show mortgage misunderstandings are extremely widespread

New research from Experian found that nearly two fifths (38%) of Brits said they were considering buying a new home within the next five years, rising to 66% of people in their 30s and 67% of those in their 20s.

People also suggested they are prepared to stretch themselves to secure their dream home, with nearly one third (31%) saying they would buy a property even though it could mean a very small amount of disposable income left each month.

Yet, even though they want to own a home, 49% of people in their 30s and 42% in their 20s were worried that they’d never appear ‘mortgage-ready’ to providers.

Further, nearly one third of consumers (27%) said they were unsure of how to prepare to get a mortgage.

Experian has found common misunderstandings in the mortgage application process and is clearing up assumptions to help people secure their dream properties.

James Jones, Head of Consumer Affairs at Experian, said: “It’s important to understand what properties are in your price range and the types of mortgages available to you.

“With our research suggesting that many are prepared to stretch their budget and purchase a property at the top of their price range, it goes to show how much home ownership is a source of pride and joy for people in the UK. Taking the time to improve your credit score when searching for your perfect home will help you access the best mortgage rates and, as a result, have more disposable income every month to spend on other things.

“It’s positive to see that the majority of potential buyers understand the importance of their credit history, as unpaid bills and other red flags on credit reports can scupper people’s chances of securing a good mortgage deal. Making yourself as attractive as possible to a mortgage lender starts with knowing your credit score, which you can check for free with Experian.”