Mortgage warning to first-time buyers despite banks’ increased lending pledge
Industry experts have warned first-time buyers may still struggle to get a mortgage despite banks pledging to offer more home loans.
Half of all buyers with a 10% deposit are refused a loan, according to the latest findings from mortgage brokers.
And this is despite a significant rise in the availability of mortgage deals especially for first-time buyers.
‘Lenders have been offering more low-deposit mortgages. However, borrowers still need an excellent credit score to qualify for one of these deals,’ says Aaron Strutt, adviser at broker Trinity Financial.
Applicants are often unsuccessful because they have a poor credit score.
This could mean they have missed bill payments, are not on the register of voters or have never had a credit card and, therefore, have no history of using credit responsibly.