The recent poll of brokers undertaken by NatWest Intermediary Solutions also found that 4% of advisers said first-time buyers were most hampered by poor credit ratings and 3% by the affordability of monthly interest repayments.
For homemovers, the biggest problem in getting a mortgage was having insufficient equity built up in their existing property, with negative equity still a spectre many are having to cope with.
Despite the Bank base rate still being rock bottom, 17% of brokers said the affordability of increased monthly repayments was the second biggest hurdle faced by people trying to move house and secure a mortgage. 13% of brokers said Stamp Duty payments were an issue for this category.
Poor credit ratings were given as the reason for difficulty obtaining a mortgage by only 12% of brokers polled.
This is in spite of loud protests by intermediaries against lenders relying too heavily on credit scoring without taking into account a borrower’s financial health by underwriting the case manually.
Only 7% of brokers thought that future concerns over house prices would prove to be a deterrent to homemovers.
Graham Felstead, head of intermediary channel, NatWest Intermediary Solutions said: “Unsurprisingly, the challenge for most first-time buyers continues to be the funding of a large enough deposit. For those who are lucky enough, they can turn to the Bank of Mum & Dad to supplement their savings but it’s important to recognise the alternatives that are on offer.
“Government-backed shared equity schemes such as HomeBuy Direct enable first-time buyers to reduce the size of a self-funded deposit by securing a low interest loan of up to 30% of the house price before getting a mortgage for the balance. We also allow parents to be guarantors on a mortgage or be one of up to four applicants along with their children.”
