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