The turbulent nature of the mortgage market over the past year is leading to considerable stress and anxiety among UK borrowers, research from Market Financial Solutions (MFS) has revealed.
The specialist lender commissioned an independent survey of 2,000 UK adults. It found that of those who have applied for a mortgage in the past 12 months, 64% have struggled with stress or anxiety because of the process. Among first-time buyers applying for mortgages, the figure rises to 80%
Two thirds (66%) of mortgage applicants search online at least once a week to uncover the best mortgage rates available. Half (50%) of those who have applied for a mortgage since 1 July 2022 have seen their desired product withdrawn by a lender during the application process.
Elsewhere, MFS’s research found that just a third (35%) of mortgage applicants think the government is doing enough to calm the mortgage market as rates rise.
Further, 47% think lenders should be providing enough support and communication about product changes, with the vast majority (69%) of mortgage applicants saying that brokers are essential for navigating the current mortgage market.
Paresh Raja, CEO of MFS, said: “The mortgage market has become far more complicated to navigate over the past year or so. Not only are rates going up but there are regular product withdrawals from high-street lenders. Our research shows the toll this is taking, most notably with elevated levels of stress and anxiety among mortgage applicants.
“Borrowers clearly need more support in the current climate. To that end, we can see that most are turning to brokers who can help them locate the best products for their needs. Lenders can also help matters by providing much-needed assurance to borrowers – they can do this through transparent services, thorough communication and endeavouring to hold products and rates wherever possible.”