Millions of stressed out Brits are turning to family rather than mortgage professionals when buying a house and are ending up with the wrong deal.
According to research by YouGov and digital mortgage broker habito, Brits are failing to secure affordable deals as a lack of trust in professionals means they are seeking advice from friends and family.
The study found that only 4% of borrowers are opting to trust a mortgage broker. It means millions of Brits end up with the wrong mortgage, which is estimated to cost consumers on average £4,000 a year.
Two million Brits also say they are overwhelmed by the process of applying and that it is one of the most stressful experiences of their lives.
The most confused and stressed about mortgages in the UK are Londoners, with 65% of first-time buyers claiming the prospect of applying for a mortgage “terrifies” them due to the wealth of options available.
Overwhelmed by average house prices of £525,000 and £70,000 deposits in the capital, the research revealed a widespread lack of understanding among first-time buyers about how the mortgage application process works.
More than half (57%) of first-time buyers think applying for a mortgage is too hard and are reluctant to seek professional help at the outset.
Daniel Hegarty, chief executive and founder of habito, said: “Post-Brexit fearmongering has just made the landscape more confusing for homebuyers. Whilst we’re in for a bumpy few years as the market finds its feet again, interest rates are at historic lows, so now is a great to time to be looking at your mortgage options.
“The real problem is that people are afraid of their finances and finding the right mortgage product is like finding a needle in a haystack. But it’s time to stop burying our heads in the sand, as the experience doesn’t have to be terrifying if we’re willing to take control of our finances.”
What Mortgage has teamed up with London & Country to offer you expert advice on the right mortgage deal.
Whether you’re buying a new home, remortgaging to a new deal or buying an investment property, L&C can help – and you’ll pay no fee for their advice. To find out more, click here.
