Nearly a quarter of mortgage holders took the first mortgage they were accepted for because they were worried about their credit score.
Research from free-for-life credit report provider Noddle.co.uk discovered these borrowers were concerned that applying for any more products might damage their credit score and jeopardise their chances of a home loan altogether.
It has underlined, said Noddle, the level of concern Brits have around their credit scores. But it has also highlighted that people needed help to understand what deals they were likely to be accepted for before they applied for a mortgage and how their credit score might impact their options.
Noddle’s research also revealed one in three homeowners claimed to know nothing about mortgages and, consequently, spent much less time comparing products before signing up to them.
As such, 17% said they had found themselves stuck in a contract they were not happy with.
Research pays
And it also found people spend more time searching for a holiday than they do looking for a mortgage. Despite it being life’s biggest purchase, an average of just 3.6 days is set aside ‘mortgage hunting’ in contrast to the five days devoted to looking for travel destinations and the six days Brits spend searching for a car.
Jacqueline Dewey, managing director at Noddle.co.uk, said: “The excitement of finding a house you’ve fallen in love with, combined with worries about being accepted for a mortgage, means it can be easy to rush a decision about a mortgage.
“But when we are talking about thousands of pounds on the line it really does pay to do your research. Rates vary across the market so don’t take the first deal available and try to speak to more than one lender.”
Noddle said anyone concerned about applying for too many mortgages should speak to a broker who can recommend the best products before the application process.
It has joined forces with online broker Trussle so that people can go to its website, check their credit score and report for free and see how they might be viewed by lenders before getting access to mortgage brokers who can make recommendations before they apply.
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