Taking out a mortgage is such a stressful process a quarter of borrowers would rather have an injection or be stuck in a traffic jam than go through the process.
In fact, in a list of stressful situations, getting a mortgage came out at number three just behind being fired from your job and the death of a pet.
The study by mortgage broker, Habito, also revealed one in five people would much rather meet their partner’s parents for the first time than go through the stressful mortgage application process.
And it’s no wonder, with a third of those quizzed admitting they experienced such high levels of stress when they were applying for their home loan, they had sleepless nights and suffered from bad moods.
What caused the stress?
There were certain elements of the process which proved more stressful than others, it emerged. Indeed, the study found the length of time taken was the biggest problem with 61% of respondents saying the slow pace created anxiety.
Nearly half of those questioned said they fretted about whether they would be accepted or rejected and nearly as many found submitting documents to be stressful.
The expense of the whole process and the jargon used by professionals was also a source of tension amongst many of those quizzed.
But what about when things went wrong? In another survey by specialist bank Aldermore a third of recent first-time buyers revealed they had also experienced a property sale falling through before they eventually bought their home.
The average loss involved, said Aldermore, was £2,157 – a figure which rises to £2,855 in London – and it caused a typical delay of seven months.
Around 60% of the respondents to Aldermore’s survey thought the mortgage process in general was overly complicated and 39% said they stress of buying made them feel ill.
Making it easier
Daniel Hegarty, founder and CEO of Habito, said getting expert help from the outset was a good way of avoiding the stress often involved in the mortgage process.
He said using a free, online broker could take away some of the stress as because it meant applicants didn’t have to take time off work to make the face-to-face meeting and would not have to worry about the financial cost.
“If you are not sure about using an online broker, do consider using a broker, period,” Hegarty continued.
“While they may charge you for their service (usually £300 to £400) it’s their job to assess your situation and put forward your application to a lender where they think there’s the best chance you’ll be accepted.
“They will deal with all the paperwork and back and forth with the bank on your behalf, so taking some of the admin stress away.”
Make sure the broker is a ‘whole of market’ broker so you can access the widest range of products possible and shop around for the best deal for you.
Hegarty also advises having open and honest conversations with your partner, family and friends about how you’re feeling about your house purchase.
“If they’ve bought a home, it’s likely they’ll have felt the same stress too, and hearing others’ experiences can often help, so that you know you’re not struggling with mortgage stress alone,” he said.
