A survey from Bluestone Mortgages, which measured responses of over 1,000 people, found that 67 per cent of respondents put the rising cost of everyday items at the top of their list. This comes as the latest ONS Consumer Prices Index rose by 4.9% in the 12 months to January 2022
The Bluestone data indicated that those with more complex credit histories are less concerned about putting their income toward homeownership in the face of looming financial instability, which 35 per cent listed as a top concern. Around 30 per cent said that they were worried about the financial implication of not being able to work, 29 per cent were anxious about the rising cost of rent, and 33 per cent said rising interest rates were their top financial worry.
The survey also found that around 30 per cent of borrowers without a credit score expect to be in a worse financial position this year, which compares to 17 per cent of self-employed borrowers.
Just over a third, 34 per cent, of those with who have traditionally struggled to secure a mortgage thought their financial situation would remain the same, whilst 18 per cent thought they would be worse off. However, 40 per cent thought they would be financially better off.
Steve Seal (pictured), chief executive at Bluestone Mortgages, said: “The rising cost of everyday items, soaring energy bills and the upcoming increase to National Insurance contributions will all have an impact on affordability and put further pressure on the cost of living.
“As a result, it’s likely many consumers will put off the homeownership process for fear of rejection, or they may have already been turned away due to their more ‘complex’ needs.”
He added that whilst there may be more challenges for self-employed and adverse credit borrowers there were other options available with specialist lenders and it was the “duty of these lenders to point them in the right direction”.
“Whether they have complex credit, a blip in their credit history or are self-employed, there are a number of solutions to help these would-be borrowers take their first, or even next move onto the property ladder,” Seal said.