Just a third of borrowers confident of getting a mortgage

Only one in three borrowers are very confident they would be accepted for a new mortgage if they applied for one, research by Legal & General Mortgage Club and the Association of Mortgage Intermediaries shows.

The survey of 2,113 borrowers, which was carried out by YouGov, also shows that 81% of respondents would prefer to make one attempt at securing a mortgage than trawl the high street, but only 44% plan to visit a broker during their next attempt to obtain a mortgage.

Legal & General and AMI say the research highlights the need for brokers to actively target borrowers who are not being serviced by high street lenders.

The survey reveals that a third, 3.4 million people, of the current mortgage holders in the UK plan to secure a new mortgage over the next 12 months, of which the majority will be looking to refinance their current deal.

But 10% of those surveyed are worried their credit rating may stop them obtaining a mortgage, while 25% believe their income is too low to be accepted and 20% believe they do not have a big enough deposit.

Ben Thompson, managing director at Legal & General Mortgage Club, says: “Many borrowers don’t realise that chasing the headline rates that high-street lenders advertise may lead them to making multiple attempts at securing a mortgage.

“It’s clear that borrowers would benefit from professional, impartial advice that will potentially open up a lot more financing options for them and brokers have a golden opportunity to tap into this part of the market.”   

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Robert Sinclair, director of AMI, says there is a significant gap between the needs of borrowers and the reality of what is being offered by high street lenders.

He says: “Such is the dearth in appropriate products that more people need better advice and a wider choice and this represents a vast pool of potential business for brokers.

“Brokers need to educate the consumer and be more proactive if they are to turn this latent demand into new business. The mortgage market isn’t suddenly going to spring back to pre-downturn levels so it’s up to brokers to make the most of the opportunities out there.”