Mortgage lending reality 'is better than public perception'

Posted: 18 May 2010 11:15:35 GMT

The belief among consumers that they will not be able to obtain large enough mortgages for house purchases is misguided, it has been argued.

Karen Barrett, chief executive of unbiased.co.uk, observed confusion among Brits as to what is available to them, after a survey by the site revealed perception does not tend to match up with reality.

According to the study, 40 per cent of people believe they would have needed a deposit of at least 20 per cent in order to buy a home in the last 12 months, while around one-fifth think they can only get a loan of 0.5 to 2.5 times their salary.

However, Ms Barrett noted many lenders are offering up to four times a person's annual wage, adding: "It will be interesting to see whether public perception will keep up with these developments."

Earlier this month, Paul Collins of BuyAssociation.co.uk argued government help is still needed if first-time buyers are to get onto the property ladder.

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