Mortgage Lending Myths - "Myth-Busting" the Mortgage Market

London, United Kingdom (PressExposure) September 23, 2009 -- Despite some encouraging signs from lenders, there has been a shift in perceptions for the worse amongst the public – 33% of Brits now think they can only get between 0.5 times and 2.5 times their salary, compared 31% of Brits at the start of the year. Similarly, only 24% of Brits think they could borrow over 4 times their salary now, compared to 28% of Brits at the start of the year.

In reality, whilst mortgage lenders are still being more conservative than before, as a basic guide most lenders will now offer around 4 times an individual’s annual income3. Those looking for a mortgage also need to ensure they understand deposit sizes, as well as income multiples, as in the current mortgage market to get a good rate they will also need at least a 20% deposit4.

Those living in Wales and the South East have shifted their perceptions of income multiples even further than the UK average since the beginning of the year. 32% of those living in Wales and the South West now believe they can only get a maximum of up to 2.5 times their income, compared to a lesser 28% at the start of the year. Similarly, only 25% of those living in Wales and the South West believe they can get 4 times or more their income now, compared to 33% of those at the start of the year.

People in the South East and East of England also believe the myth that mortgage lenders are tightening their income multiple criteria, meaning they could be missing out on the mortgage they need. 34% believe they can now only get up to 2.5 times their salary compared to 28% at the start of the year. Only 25% believe they can get 4 times or more their income now, compared to a higher 30% at the beginning of Q1 2009.

David Elms, chief executive of Unbiased.co.uk, which offers a 'Find a mortgage adviser' search, comments: "The mortgage market has been going through tremendous change over the past year and lending criteria certainly isn’t what it used to be. There is a lot of consumer confusion out there. It is not surprising that many potential homeowners have taken a pessimistic view of lending criteria and what income multiples are available to them.

Unbiased.co.uk's research, which highlights these misconceptions of the mortgage market, urges prospective buyers to visit a whole of market mortgage adviser for the best advice on their mortgage options. Many may be unnecessarily putting off buying a property due to their belief they cannot obtain their required mortgage. A whole of market mortgage adviser can look at all the mortgages available and find the best deal not just by rate but also by income multiple and deposit size.”

About Unbiased

1 Opinium Research carried out an online poll of 2,026 British adults from Friday 15th May to Tuesday 19th May 2009. Results have been weighted to nationally representative criteria.
2. Opinium Research carried out an online poll of 2,088 British adults from Friday 23rd January to Tuesday 27th January 2009. Results have been weighted to nationally representative criteria.
3. Average income multiples are based on London & Country mortgage calculator
individual circumstances may vary and this calculator is for guidance only.
4 Lowest deposit size according to Money Supermarket’s best buy table on 3rd July 2009.


Unbiased.co.uk is the free and confidential UK-wide search service matching consumers with the most appropriate local professional advisers for their needs. The portal currently houses three professional advice searches: ‘find an IFA’, ‘find a mortgage adviser’, and ‘find a solicitor’, and is inviting accountants to sign up for its ‘find an accountant’ service. These searches enable consumers to find relevant professional advisers by postcode, area of specialism and payment method, amongst other options.

Press Release Source: http://PressExposure.com/PR/Unbiased.html

Press Release Submitted On: September 23, 2009 at 11:06 am
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