Mortgage process seen as ‘complex’ by many UK home buyers

Buying a house is proving to be stressful to buyers, including those with earnings topping £80,000, reveals survey by Atom bank

Buying a house is causing anxiety to two thirds of buyers and even those with earnings topping £80,000 say they are struggling with the financial challenges involved.

The complexity of the mortgage process appears to be the biggest contributor to stress with more than three quarters of first-time buyers searching for a home admitting it needs to be more ‘user-friendly’.

It’s a sentiment felt widely by all buyers – from builders to barristers. Indeed a third of buyers with a postgraduate degree feel dissatisfied with the mortgage process.

And a third of would-be buyers admitted they had pulled out of the home purchasing process altogether because of the stress of the situation.

The survey by online bank Atom bank, also revealed how saving for a deposit was creating high levels of stress and this was not necessarily limited to those on lower incomes.

It found almost half of households earning £80,000 or more said they were struggling to save for a deposit, despite the fact they were earning nearly three times the national average wage.

CEO of Atom bank, Mark Mullen said the findings have showcased just how much impact the mortgage process can have on a first-time buyer, before they’ve even entered the market.

Mullen said that buying a home is commonly the largest investment most people will make in their lifetime which is stressful enough without worrying about the mortgage process. This makes it vital that buyers feel at ease as early on in the process as possible.

Atom bank also found a disconnect between advisers and buyers, with many people getting advice from their parents. However, Atom bank warned this was risky since many parents may not have purchased a property in decades.

In fact many of those quizzed felt they had suffered from a lack of education around mortgages and wish they had been taught more in school.

Nearly as many first-time buyers would seek advice from their parents as they would a professional, despite facing different challenges to the older generations.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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