New research from the Building Societies Association (BSA) shows access to mortgage finance is now the single biggest barrier to owning a home among first-time buyers.
For the first time since 2012, accessing finance is now considered harder for new buyers than raising a deposit, the BSA’s study shows.
Now 57 per cent of these buyers say that getting a mortgage is the most difficult hurdle to overcome, compared to 41 per cent in June 2014 and 33 per cent in September last year.
Difficulty in accessing finance for homemovers has been marginally less striking, rising from 42 per cent in September 2013 to 51 per cent in September 2014.
Substantial press coverage around the changes to mortgage regulation implemented in April may be one of the reasons why first-time buyers are especially concerned about getting a mortgage, the BSA says.
Recommendations from the Financial Policy Committee (FPC) to bring in a cap of 15 per cent on the total number of mortgages available at or above 4.5 times a borrowers’ income may also have affected confidence – especially to those buying for the first time in London and the South East, the BSA says.
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