Consumers don’t understand mortgages
There is a widespread lack of understanding among mortgage borrowers, according to specialist lender, Beacon Homeloans.
Most consumers (75%) realised that being bankrupt or having CCJs could prevent them from getting a mainstream mortgage. Fewer than 50% knew that missing credit card payments could hinder a mortgage application – three missed payments can mean a mortgage application will be rejected.
And only 23% knew that being self-employed could impact on their ability to get a standard mortgages.
Spokesperson for Beacon, Nicola Severn, said: “This research shows that more needs to be done to educate consumers about the non-conforming market and the effect an individual’s financial status has on their ability to borrow.”