Region ‘ill prepared’ for mortgage borrowing

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Help-to-buy hopefuls in the North West are ill-prepared for the full impact of what it will entail, according to researchers.

Nationally, almost two fifths of 20 to 40-year-olds are planning to apply to the Government’s Help to Buy mortgage scheme in 2014, says a report commissioned by Experian CreditExpert.

But researchers found just two fifths of Help to Buy Hopefuls being registered to the electoral roll at their current address – something that can be a key factor not only in passing the initial identity verification checks but also in ensuring your credit report is accurate as possible.

A quarter of would-be Help to Buy applicants have never reviewed their own credit report and seven per cent have not saved for a deposit. More urban areas account for the largest proportion of Help to Buy Hopefuls, with the North West accounting for 11 per cent.

Peter Turner, Managing Director, Experian Consumer Services, UK & Ireland, commented: “Help to Buy has brought homeownership to within touching distance for thousands of younger buyers earlier than they may have dreamt possible. 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 repay.”