The quarterly A&L movingimproving index revealed over six million people would rather rent than buy a property and almost half (47 per cent) of those who would rather rent are 'mortgage-phobic' - nervous of getting onto the housing ladder because they fear the actual cost of a mortgage.
The index also reported nearly one in five (17 per cent) of those who prefer renting feel a mortgage is too much of a commitment. Another third (30 per cent) say a mortgage is too expensive and feel they would be unable to afford their property.
Stephen Leonard, director of mortgages at A&L, said: "It seems the cost of a mortgage is the main reason why people choose to stay off the property ladder. Of those who would rather rent, nearly half think a mortgage is too expensive or too much of a commitment.
"People are afraid that mortgages are unaffordable but the reality is that even though it is a financial responsibility, it needn't be a burden if people get the right deal to suit their circumstances."
"Despite 'mortgage phobia' our research shows the majority of people in the UK would be happier to call a home their own rather than to rent from a landlord," he added.
James Cotton, mortgage specialist at London & Country, commented: "Committing to a mortgage is clearly a deterrent for many people. Although the cost of a mortgage is highlighted as a concern with rates as low as they are at the moment the monthly cost for many people will be little more than the rent they are currently paying.
"There is, however, the further issue of raising a deposit which can be as much, if not more, of an obstacle."
