The amount of prospective home buyers who meet the qualifying criteria for every mortgage deal on the market is as low as 3.5 per cent, according to analysis from Experian.
While one in five (22 per cent) of those using pre-qualification websites to find a suitable product meet the initial qualifying criteria for every lender on the market, this figure dropped significantly once their affordability for their desired loan is considered with an eligibility check.
Pre-qualification websites have increased in popularity in recent years and the tools have streamlined the process of identifying suitable mortgage products, matching customers to deals they are most likely to be eligible for.
However, despite the tools supporting a significant number of prospective homeowners, lenders decline a third of customers on average as they do not meet their full lending criteria.
Furthermore, just over one in four people searching for a mortgage find they are eligible for a mortgage with at least one lender but will not be able to borrow their desired amount. The analysis highlighted that 27 per cent are eligible for a mortgage but only for a reduced amount to meet the lender’s affordability requirements.
This figure increased to 31 per cent for those looking to remortgage with additional borrowing requirements.
Commenting on the figures, Experian managing director of data services Lisa Fretwell said: “People don’t want to leave anything to chance when they’re trying to buy their dream home. Pre-qualification websites strengthen their position, signposting mortgages which they will find affordable and be accepted for, so they can get the loan they want.
“Mortgage lenders are using new services to increase their acceptance rates. Pre-qualification connects them with people who are eligible to borrow from them, while Open Banking services allow them to quickly understand someone’s income and outgoings.”
Fretwell noted that the firm is continuing to work with mortgage lenders wanting to leverage pre-qualification and Open Banking technology to identify eligible new borrowers.
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories