Research from Skipton Building Society, which was exclusively shared with Mortgage Solutions and surveyed 1,000 aspiring first-time buyers, showed that 12% of borrowers have “very much” held back on getting on to the property ladder due to current mortgage products and options available to them.
Approximately 38% said mortgage products and choice availability have meant they have held back a “moderate amount”.
The report found that 15% said they have not held back very much based on mortgage product choice and 6% said they have not held back much at all.
A fifth said mortgage product choice had not held them back at all, while 23% said they didn’t know what mortgage products and options were available to them or were not at that stage of the home buying process.
When asked what specifically held prospective first-time buyers back, around 45% said mortgage rates were too high, while 35% pointed to restrictive criteria and 32% said lenders often do not take rent into consideration.
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The report added that nearly a third said the application processes aren’t clear and highlighted the lack of options for “breathing space” between the first mortgage payments and last rental payment.
Over a quarter said there was not enough choice of products, and the same number said the loan to value (LTV) on products was not high enough.
Jonathan Evans, new-build lead at Skipton Building Society, said: “Our latest research reveals that almost half of aspiring first-time buyers agree they have held back from buying a home because of the mortgage options available to them. While rates play a big part, they’re heavily influenced by the economy, so our focus is on removing the other barriers that make homeownership harder. That means tackling restrictive criteria, improving flexibility, and creating new routes to affordability.
“At Skipton, we’re committed to innovating products that make a real difference to the barriers of homeownership. Helping renters buy without a deposit through our Track Record mortgage, offering high loan-to-value options and flexible criteria, and giving customers breathing space in those crucial first months with our Delayed Start mortgage. We’ll keep working to make homeownership fairer and more accessible for the generation that feels locked out.”
