When to rebuff potential FTB clients

Outside of London, he notes that there is no house price inflation so there should be no cost of delaying the purchase. In fact, prices may even fall and benefit the potential buyer in the long run.

People are also sometimes better off waiting if they have adverse credit history, recent self-employment or too much unsecured debt.

Brian Murphy, head of lending at Mortgage Advice Bureau, adds that advisors should be blunt and tell a client when it is financially unfeasible for them to buy a house.

This advice will either give the client time to raise the level of deposit needed or increase their salary to enter the housing market, especially when no parental contribution can be made.

“Although 5 per cent and 10 per cent deposit availability is improving, it’s unlikely no-deposit mortgages will return in the foreseeable future.”

But in a ‘computer says no’ scenario there are ways to still prevail, Mr Clark suggests. “If you get turned down for 90 per cent, try 89.9 per cent instead, this often works. Having an active bank account with the lender concerned also seems to help these days.”

Mr Murphy stresses that employment status is also important to lenders, while lifestyle choices and spending habits mean FTBs may find it difficult to demonstrate to a lender they can budget or manage their own affairs

“If FTBs have only recently begun full-time employment, or are attempting to enter the market straight out of university, it’s unlikely they’ll have adequate savings, proof of regular saving or in some cases may not have built up a sufficient credit history on which a lender can assess their ability to repay a mortgage.”

Many people are unaware of their credit worthiness and how it may be affecting their ability to borrow.

To convert a customer today into a future client, Mr Murphy says advisers would explain and encourage them to understand their credit rating and if it is poor now how they can improve it.

“Lenders need to be able to evidence a number of aspects of any applicant in determining their eligibility for a mortgage.”

There are alternatives for those with irregular credit histories, he adds. Saffon Building Society offers alternative mortgage assessments for those who may not pass a mainstream high street lenders credit score approach to underwriting.

Finally, for some aspiring FTBs owning a property is simply not in their best interests, perhaps due to volatile employment income or changing location. “Renting shouldn’t be viewed as second rate option, for some it’s a preferable solution,” insists Mr Murphy.