Consumers are underestimating the availability of mortgages in the UK property sector, with many ruling themselves out of the market despite being eligible for a home loan.
Britons believe salary multiples to obtain a mortgage have worsened since the beginning of the year, with the average thought to be 3.1 times an individual's salary, research from Unbiased.co.uk has found.
A third of consumers think lenders have restricted the value of a home loan to the equivalent of 2.5 times that of a yearly wage.
However, data shows that less than one in four people (24 per cent) think they could borrow a four times salary mortgage, down four per cent from the beginning of the year.
In fact, most lenders have home loans equivalent to four times a borrower's annual wage, although a deposit of at least 20 per cent is usually needed to be eligible for the most competitive deals.
"There is a lot of consumer confusion out there. It is not surprising that many potential homeowners have taken a pessimistic view of lending criteria and what income multiples are available to them," said the website's chief executive, David Elms.
"Many may be unnecessarily putting off buying a property due to their belief they cannot obtain their required mortgage."
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