Costs, delays and the uncertainty associated with the house-buying and mortgage process are contributing to a high level of stress and worry amongst first-time buyers, a new study has found.
While the number of first-time buyers reached a 12-year high in February, of those who are about to embark on this major life event only 3% said they had not a single worry about buying a home.
And it’s no wonder, as the research by online mortgage broker Habito revealed almost half of buyers aged 18 to 34 had to make an offer on more than one property before being accepted. In London, buyers were making offers on three or more homes before landing a deal.
One in five young buyers are waiting six months or more to receive that all-important offer acceptance.
Yet, despite going through all this hassle, one in five said they didn’t get the best house for their needs.
Factors causing the biggest worries
Habito’s investigation found cost was causing the most concern to would-be first-time buyers with 65% admitting this was a major worry, a figure which rose to 71% for those located in the South of England.
But nearly half of those quizzed said uncertainty – the fact nothing was set in stone until exchange of contracts – was causing them anxiety.
And a third said being stuck in a chain or delays in the process which could cause the transaction to slow down, were a worry.
Daniel Hegarty, CEO and founder of Habito, said: “It’s no surprise given the state of the UK’s property market, that the worries surrounding buying a home start with the cost.
“But the fact that uncertainty around the mortgage process, the time it takes and the fear of something going wrong are impacting 5.4 million homeowners is a shocking indictment of the home financing process as it stands today.”
Mortgage-related stress
Last year, Habito carried out research which found two thirds of people with a home suffered from ‘mortgage-related stress’ during their application.
It said symptoms of mortgage stress included lost sleep, mood swings, having arguments and worrying about their application every day.
It said 6% had admitted to seeking help from a mental health professional or GP and this figure soared to 10% for homeowners aged 25 to 34 years old.
Hegarty added: “The whole mortgage industry needs to drastically improve transparency, certainty and speed to be fit for today’s consumers.”
