Help to Buy hopefuls unprepared for mortgage scheme application
Up to 40 per cent have not made key checks on their credit rating or electoral roll entry
Alex Johnson has been part of The Independent's online team since 2007. He has been writing about microarchitecture on his internationally-acclaimed Shedworking blog since 2006 and is the author of Shedworking: The Alternative Workplace Revolution. His latest book is Bookshelf, published by Thames & Hudson.
Thursday 23 January 2014
Around two fifths of 20 to 40-year-olds are planning to apply to the Government’s Help to Buy mortgage scheme in 2014, according to a report from Experian.
But figures from the study show that only 40 per cent are registered on the electoral roll at their current address which can be a key factor in passing initial identity verification checks as well as ensuring an accurate credit report.
In fact, the report indicates that a quarter of potential Help to Buy applicants have never reviewed their own credit report, and one in seven of those looking to buy admit that they have been managing their current credit accounts poorly in recent years.
"Help to Buy has brought homeownership to within touching distance for thousands of younger buyers earlier than they may have dreamt possible," said Peter Turner, Managing Director, Experian Consumer Services, UK & Ireland. "But it’s important to remember that the deposit is only part of the equation and consideration must be given to how much you can afford to borrow, and crucially repay in the years to come.
"A larger loan means lenders taking close look at your ability to repay and a large factor in that will be based on your credit history."
The report also shows that:
* More men than women (43% compared to 34%) are planning on applying for the scheme
* People in the North East are most likely to be considering Help to Buy while those in the South East and the South West are least likely.
* The average deposit saved by those planning to use the Help to Buy scheme is £9,590
* Help to Buy Hopefuls currently owe an average of £4,600 in other borrowing
Board creates magnetic field to achieve lift
Singer says the track was 'force-fed down people's throats'
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
George Lucas criticises the major Hollywood film studios
Film follows park rangers in the Congo
Does Chris Grayling realise what a vague concept he is dealing with?
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 4 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 5 The inventor of the Facebook 'like' button says he never made a 'dislike' button because he feared the 'unfortunate consequences'
Ukraine crisis: Donetsk 'tactical missile' explosion at factory sends blast wave across rebel-held city
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
iJobs Money & Business
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...