Affordability issues continue for FTBs

The problem is worst in London, with 54% of households unable to afford a property, followed by the South West (48%) and South East (47%).

The picture in the north is a little more positive. Scots are in the best position, with a smaller 24% unable to afford a property. 25% of those in the North East and 28% in the North West are unable to afford a property.

Jonathan Westley, MD of Consumer Information Services at Experian UK & Ireland, comments:

“With more homes being bought under the government’s ‘help to buy’ scheme and increasing numbers of properties appearing for sale, this could mean more people hoping to get onto the property ladder this year. Once they’ve found the house they love, they’ll want to move quickly and that means having a mortgage in principle already agreed.

“Lenders are going to great lengths to understand what mortgage applicants can afford, so that the final decision to lend is fair and responsible, thanks to the Mortgage Market Review, but this has unfortunately lengthened the process. One way forward is for lenders to ‘pre-qualify’ their mortgage applicants online, giving homebuyers a fast, but accurate and fair decision on whether they will secure a mortgage and for how much, without impacting their credit score. This means a better experience for homebuyers who can confidently put in a timely offer on the house they want to buy, but still enables lenders to protect their customers from taking on too much debt.”