New survey indicates it's not affordability
Mortgage affordability is not a major concern for most borrowers, with only 8% expressing worries about the long-term financial burden, a recent survey by MPowered Mortgages has suggested.
However, while affordability is less of an issue, uncertainty in the mortgage process remains a key concern. According to the survey, 69% of brokers said borrowers struggle with not knowing where they stand with their mortgage offer, while 20% cited timeframes and delays as a significant issue. Only 12% of borrowers were reportedly satisfied with the current mortgage process.
The survey highlighted four major pain points for borrowers: excessive paperwork and administration, balancing mortgage applications with other life commitments, slow processing times, and a lack of transparency from lenders.
“Getting a mortgage can be arduous and time-consuming, requiring extensive documentation, credit checks, and strict eligibility criteria,” said Stuart Cheetham (pictured), chief executive of MPowered Mortgages. “This new survey reveals that borrowers are quite simply fed up with the mortgage process. It’s no wonder that our recent consumer survey showed that speed was important to 80% of borrowers in the mortgage process.
“In the worst-case scenario, delays in the mortgage process can cost a consumer their dream property or, in some instances, the best rate on offer to them, potentially costing thousands of pounds. Lenders need to remove the admin burden on borrowers because buying a home is stressful enough.”
The survey also found that brokers share many of the same frustrations. When asked about their biggest concern, 54% pointed to delays in processing, 24% cited lender communication issues, and 10% highlighted inaccurate documentation. Only 9% said losing clients to competitors was their primary concern.
The MPowered survey contrasts with other reports that highlight affordability as the primary challenge for mortgage borrowers. This finding offers some reassurance, especially as 1.8 million people in the UK are set to remortgage this year amid rising monthly payments despite recent interest rate cuts. MPowered analysts suggest that growing incomes may be helping to ease cost-of-living pressures.
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