13 million adults don’t think they’re eligible for a mortgage. Now they can check
Nearly one third (30%) of UK adults don’t think they would be eligible to borrow any money in the form of a mortgage, affecting almost 13 million people.
But six in 10 have never checked how much they could borrow via a soft check before applying, so they can’t be sure. Soft checks do not impact your credit rating, which is a key measure when a lender decides whether you are eligible for a mortgage.
The majority (74%) of UK adults admit that they have not made any attempt to improve their credit rating to boost their chance of bagging a mortgage.
How much can you borrow?
Neither do people know how much money they could borrow. Over half (58%) were not confident about what size mortgage they could get and only 12% of thought they could secure a mortgage large enough to cover a house at the average national price.
Now comparethemarket.com has launched its Mortgage Eligibility Checker, which asks for a few personal details to calculate how much you might be able to borrow and whether you are eligible for a mortgage. This allows you to be more informed when comparing mortgages or when speaking to an estate agent to look for a property.
Shakila Hashmi, head of money at the business said: “Buying a home is one of the biggest financial commitments and it is crucial that borrowers are fully equipped with the necessary knowledge before they apply. Borrowers should be aware that even small changes, such as registering on the electoral roll, taking out a credit card, paying off debt or simply saving more regularly can significantly increase their chances of securing a mortgage.
“Our mortgage eligibility checker allows customers to check whether and how much they can borrow, before making an application. In some cases people may find they are not eligible for a mortgage at the time of checking, but a soft check does not impact your credit rating and allows you to make the changes necessary to help secure a mortgage at a later date.”