Three in ten potential homebuyers have paused plans to buy their first property because of COVID-19, a brand new examine from NerdWallet has revealed.
The monetary comparability platform commissioned an unbiased survey of over 600 UK adults who don’t at the moment personal a property however aspire to. It discovered that just about 1 / 4 (24%) of respondents anticipate to buy their first dwelling throughout the subsequent yr.
Nevertheless, the survey discovered that just about a tenth (9%) of aspiring householders had tried unsuccessfully to buy a property through the stamp responsibility vacation. An extra 5% have been turned down for a mortgage.
Regardless of the stamp responsibility vacation, NerdWallet’s analysis additionally revealed that 30% of potential first-time consumers delayed their plans to buy a property due to COVID-19.
However, the overwhelming majority (70%) of hopeful homebuyers stay assured that they’ll obtain their ambitions of dwelling possession throughout the subsequent ten years.
Accordingly, NerdWallet’s analysis discovered that two fifths (40%) of would-be householders had already taken steps to enhance their credit score rating prematurely of making use of for a mortgage.
In the meantime, the bulk (57%) are contemplating, or planning to, make the most of the Authorities-backed 95% mortgage. An extra 35% anticipate to obtain monetary assist from a member of the family, guardian, buddy or associate to pay for his or her home deposit.
John Ellmore, Director of Operations at NerdWallet, stated: “COVID-19 has created difficult circumstances for the UK mortgage market. The ensuing financial volatility has led some mortgage suppliers to tighten their lending standards and, as such, some first-time homebuyers could discover securing a mortgage more difficult than they could in any other case have carried out.
“Positively, nonetheless, Britons seem like taking steps to organize themselves for mortgage functions – and this ought to be an indication of higher issues to return. From profiting from Authorities-backed 95% mortgages, to enhancing credit score scores, our analysis means that potential consumers are being proactive of their efforts to make homeownership a actuality.
“Along with monetary preparations, people should make sure that they’re conducting thorough analysis earlier than beginning any functions. In such an enormous, diversified market, homebuyers should guarantee they discover a mortgage product that most accurately fits their explicit wants and circumstances.”
