Difficulty getting mortgages 'a serious problem'
Seven in 10 people believe difficulty in getting a mortgage is a serious problem in the current housing market, a survey has found.
Nearly one in three (32%) people said the ability for people generally to get a mortgage or remortgage was a "very serious" problem, and a further 40% described the issue as "somewhat serious", according to the research carried out for consumer group the HomeOwners Alliance and conveyancing firm myhomemove.
The survey included homeowners as well as people trying to get onto the property ladder.
Nearly four in five (78%) aspiring homeowners said getting a mortgage was a serious problem for people generally, while for people who were on the first rung of the property ladder this figure was 75%.
Compare mortgage rates
The findings suggested that despite mortgage rates being at rock bottom levels and mortgage support initiatives such as Help to Buy, many people still saw the prospect of being able to get a home loan as a struggle.
In this week's Budget, the government unveiled a Help to Buy Isa scheme which first-time buyers will be able to use from this autumn to save for a deposit, with the Government chipping in a maximum £3,000 "bonus" for each person.
While the scheme has been welcomed, some experts have suggested it could lead to house prices being pushed up further in areas where there was a shortage of homes to choose from.
They have also pointed out that while the new Isa scheme would help people to raise a deposit, they would still face the hurdle of finding a mortgage.
Toughened mortgage lending rules were introduced last year.
The Mortgage Market Review (MMR) rules force lenders to check people's spending habits more thoroughly to make sure they can truly afford their mortgage, both now and when interest rates start to increase.
Compare mortgage rates
The new findings among more than 2,200 people also suggested that 80% who were separated or divorced saw getting a mortgage as a serious problem for people generally, compared with 71% of people who were living with their partner and 69% of people who had never married.
Across the UK, people living in Wales were the most likely to say getting a mortgage was a serious problem, while those living in the North East of England were the least likely.
Paula Higgins, chief executive of the HomeOwners Alliance, said: "Despite all the talk of help, people from all walks of life say that getting a mortgage is a major hurdle to getting on the property ladder...
"With a desperate shortage of houses and sky high house prices, for many their mortgage difficulties will be the nail in the coffin of their dream of owning a home."
David Hollingworth, spokesman for London and Country mortgage brokers, said that ultimately, the stricter mortgage rules were in place "to prevent a return to the excesses of the market before the credit crunch hit".
He said of the mortgage market: "The rates on offer are currently at record lows and the product options for those with smaller deposits have been improving too.
"However, seeking out the right criteria for your circumstances is just as important as finding the right rate."
Housing minister Brandon Lewis said: "We're determined that anyone who works hard and wants to get on the property ladder has the help they need to do so.
"That's why we've introduced the Help to Buy, which has helped over 88,000 households, and announced ... a new Help to Buy Isa to help aspiring homeowners save for a deposit on their first home with contributions from the government."
Here are the percentages of people regionally who see the ability to get a mortgage generally as a serious problem:
Wales, 81%
Yorkshire and the Humber, 76%
West Midlands, 74%
South West, 74%
London, 73%
East Midlands, 73%
East of England, 72%
North West, 72%
Northern Ireland, 70%
Scotland, 69%
South East, 66%
North East, 65%
More on AOL Money
Compare mortgage rates
The insanity of our mortgage market
'People over 40 'too old to get a mortgage'
