New research from Boon Brokers reveals which parts of the mortgage application process borrowers found most stressful. The survey examined overall stress levels, the stages of the application that create the greatest pressure, and how experiences differ across age, gender and location.
88% of borrowers found their most recent mortgage application to be a stressful experience, with 45% describing the process as either very or extremely stressful.
Respondents were asked to identify the three main parts of the mortgage process that they found most stressful. The findings revealed that waiting for lender approval (29%) was the most stressful part of the process, closely followed by finding the best mortgage deal (28%).
Survey and valuation issues (23%), proving income (21%) and unexpected document requests (17%) also ranked among the most common sources of stress.
59% of 18-24-year-olds reported the highest levels of stress
Age was found to be an outlining factor that differentiated the stress levels, with younger participants showing increased levels of stress compared to older participants.
Borrowers aged 18-24 reported the highest levels of stress during their mortgage application, with 59% describing the process as either very or extremely stressful.
By comparison, only 29% of respondents aged 55-64 reported the same level of stress, making younger borrowers more than twice as likely to experience high levels of mortgage application stress.
The research also found that mortgage application stress generally declined with age. Just 3% of borrowers aged 18-24 said they experienced no stress during their mortgage application, compared with 23% of respondents aged 55-64.
Mortgage lenders the biggest source of stress
Mortgage lenders were selected by respondents to be the biggest source of stress during the mortgage application process, with 44% of borrowers selecting their lender as the party that caused them the most stress.
Surveyors followed at 25%, then mortgage brokers at 23% and only 7% stated that no individual party caused the most stress.
Although mortgage brokers received the lowest proportion of responses from the three options presented, still almost one in four borrowers (23%) identified their broker as the party that caused them the most stress.
This remains a particularly notable finding given that several of the biggest stress points identified elsewhere in the research are areas where borrowers would typically expect their mortgage broker to provide support.
The data showed that finding the best mortgage deal was the second biggest cause of stress (28%), while proving income (21%) and unexpected document requests (17%) also ranked among the most stressful parts of the mortgage application process.
Survey and valuation stress highest in South East England
The research found survey and valuation issues to be one of the most stressful parts of the mortgage application process.
Comparing the regional data, South East England recorded the highest percentage with 28% of borrowers, followed by South West England (25%) and Northern England (22%).
The data found that survey and valuation stress declined from 19% in Scotland and 18% in Central England to 11% in Wales and just 6% in Northern Ireland.
The city-level findings followed a similar pattern. London recorded the highest level of survey and valuation stress at 29%, compared with 28% in Leeds, 27% in Sheffield, and 26% in both Manchester and Norwich.
Comparatively, only 18% of borrowers in Cardiff, 16% of borrowers in Glasgow and 6% in Belfast selected survey and valuation issues.
While the research did not specify why their experiences differed by location, these findings indicate that the differences in local property markets, property values and the potential financial impact of valuation outcomes may be contributing factors.
Concluding, the research highlights is that the stress for borrowers is rarely caused by a single issue or stage during the mortgage application.
Instead, the data shows broad results of borrowers experiencing pressure at multiple stages of the process, from choosing a suitable mortgage and proving their income to waiting for lender decisions and navigating property surveys.
Together, these findings highlight clear opportunities within the mortgage industry. Improving communication, setting clearer expectations on stage progression from the start, and helping borrowers understand the lender requirements before an application is submitted could all play an important role in reducing unnecessary stress throughout the mortgage journey.
Gerard Boon, founder and managing director of Boon Brokers, commented: "What stood out from this research was that borrowers experienced stress across many stages of the mortgage application, while lenders, brokers and surveyors were all listed as contributing to that experience. These findings alone point to an opportunity for the industry as a whole to improve communication, set clearer expectations and help buyers feel more informed throughout the home-buying journey."
