BSA: Mortgage lending conditions easing but buyers wary
Credit conditions for homebuyers have begun to ease, with fewer people citing access to mortgage finance as a significant obstacle in September 2012, a report from the Building Society’s Association has suggested.
According to the BSA, results of a survey of 2,000 people suggest the availability of mortgage finance has improved although fear of being turned down is still putting some would-be borrowers off.
Fewer than half of respondents said access to mortgage finance remains a hurdle to overcome in September 2012, 13 per cent fewer than the 59 per cent who cited this as a barrier in September 2011.
However, only a very small proportion of people who said the prospect of getting a mortgage put them off from buying had actually spoken to a lender or done their own research.
Just over one in five said they had concerns that their income was not high enough to borrow as much as they would like. Another 16 per cent said they were put off because news stories reported a lack of mortgage lending by banks and building societies, a further 16 per cent were worried their deposit was not large enough, and 14 per cent said it was because of a fear of being turned down for a mortgage.
Only three per cent had actually applied for a mortgage and been turned down, and four per cent had spoken to a broker or lender or done other research, concluding they might not get a mortgage.
Paul Broadhead, head of mortgage policy at the BSA, said: “Results from our Property tracker report indicate that the barriers to purchasing property may be largely down to perception, rather than actual experience.
“Although mortgage availability has undoubtedly reduced since the start of the financial crisis, some lenders such as building societies and other mutuals have actually increased their lending to all types of borrowers, including first-time buyers, over the last year or so.”