Public perception of mortgages behind the times - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Public perception of mortgages behind the times

Public perception of mortgages behind the times

Category: Mortgages

Updated: 18/05/2010
First Published: 18/05/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Britons' perceptions of the mortgage market and the availability of home loans is lagging behind reality, as the effects of the credit crunch have left a lasting impression.

Some 40% of the public think they would need a deposit of at least 20% to secure a mortgage, research conducted by has found.

Such attitudes are likely to have been influenced by the collapse of the housing market and the tightening of credit that was subsequently implemented by the UK's high street institutions.

However, data shows that at the end of last month, the number of mortgages requiring just a 10% deposit had increased to 162, while there were 19 products that allowed a down payment of only 5%.

Would-be homebuyers who have managed to put together a 15% deposit had the choice of 358 home loans at the end of April.

"An increasing number of lenders are now offering 90% LTV deals, meaning especially first time buyers who were previously priced out of the market can now see if they can access an affordable deal," said Karen Barrett, chief executive of

In addition, the majority of Britons believe that salary multiples to obtain a mortgage have only improved slightly since early 2009, despite the average now though to be 3.3 times an individual's salary.

One fifth of respondents thought that they would only be able to obtain a mortgage worth between 0.5 and 2.5 times their salary, while a quarter thought lenders would give a maximum mortgage of three times salary.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.