Consumers held back by mortgage ignorance

Nearly half of respondents in the Unisys survey thought that mortgages require a ten per cent deposit and that they can only borrow three times their salary, but this is not exclusively the case.

“These figures suggest that there may be a misinformed and therefore untapped market for mortgage lenders in the UK,” commented Peter Axson, head of banking solutions at Unisys.

“This could mean that there are millions of people across the UK who think they cannot afford to buy their own homes when in fact they can.”

Findings come as the mortgage market expands and growth areas include loans aimed at people who would normally be excluded due to their credit rating.

Mr Axson believes that with more people becoming bankrupt, the survey showed the risks people take by selecting the wrong mortgage.

He called for more education of mortgages and loans by banks and lenders to ensure that people are informed and take out the most suitable mortgage for them.