Changing habits of mortgage seekers

Posted: 27 Apr 2015 16:37:08 GMT

            Property News - Changing habits of mortgage seekers

Individuals hoping to secure a future mortgage have been shown to have changed their spending habits in the wake of changes to lending criteria in the UK.

New research from MoneySuperMarket has revealed the changing habits of individuals seeking mortgage borrowings in the wake of a tightening of lending criteria in recent months.

According to a poll of more than 2,000 online interviewees, one-fifth (20 per cent) of those planning to apply for a mortgage in the next three years stated they now pay for more items with cash rather than credit than they used to prior to the tightening of criteria.

Meanwhile, 21 per cent said they are now making paying off debts a higher priority than in years gone by, with 29 per cent of respondents stating their hope to be debt-free by the time they apply for borrowings.

Kevin Mountford, head of banking at MoneySuperMarket, commented: "While the rules were introduced for the right reasons, in some cases borrowers who can easily afford a mortgage are being turned down for arbitrary reasons, despite them being able to easily afford mortgage repayments."

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