A recent HSBC survey has discovered that people looking to get on the housing ladder have little faith in their ability to seal a fixed rate mortgage or any other mortgage that would help them buy a house in the not too distant future.
The housing market has suffered since the recession, with ill judged mortgage lending at blame for the global downturn and lenders have become extra stringent, with most asking for at least a 20% deposit.
Even those with a deposit have faced extra checks and questions about their ability to pay off the loan, something that is clearly worrying potential buyers.
HSBCs survey found that 80 per cent of the people they asked hoped to become a first time buyer, but only 19 per cent believed they’d be able to make that happen in the next five years.
45 per cent responded saying they didn’t believe they’d ever be able to buy their own house.
The vast majority explained that the huge deposit requirements were a barrier, with the average house costing in excess of £160,000, a 20% deposit would require a £32,000 deposit.
A further 59% explained that they didn’t earn enough money to pay for the mortgage each month, which is particularly worrying in a time of such low interest rates.
HSBCs Stuart Beattie looks after the mortgage department of the bank and urged the
“HSBC is committed to helping FTBs and is currently working on a number of initiatives that will help the FTB cause.”
Buyers could soon be offered better protection on mortgages after an EU resolution insisted that lenders offer simpler and more informative information on all their mortgages.