Almost two-thirds of those surveyed have sought face-to-face advice with a mortgage adviser while only six per cent said they had organised, or would look to organise, a mortgage online.
With the surge in house prices over recent years, affordability is now more of an issue than ever. Nearly half though, (46 per cent) are worried that house prices will become even more unaffordable the longer they wait and a quarter feel if they don’t buy now they never will. Such urgency is making people anxious to buy, at almost any cost. Worryingly, 13 per cent of respondents said they had already taken out or were looking to take out an interest-only mortgage without any intention of having some sort of investment plan to repay the capital at the end of the mortgage term.
Meanwhile first time buyers remain eager to step onto the ladder despite 79 per cent believing interest rates will increase over the next twelve months. Eight per cent believe they will stay the same and only three per cent think they will fall. Perhaps predictably, eight in ten of those who knew what type of mortgage they wanted, favoured fixed rates.
Gus Park, director of intermediary sales for Mortgage Express, said: “With 68 per cent of FTBs finding the mortgage process daunting and over three-quarters already managing existing debts, many with little or no deposit, the need for financial guidance is greater than ever. Fixed rate deals have always been popular with first time buyers because of the security they offer. If you are stretching yourself financially it helps to be able to plan your budget.”
