Research by Standard Life has found that more than half of consumers do not know that they can get a mortgage, because they think that they do not earn enough.
The company have said that salary multiples are no longer an accurate way of working out eligibility for a mortgage, and homebuyers should be able to borrow, based on what they can afford to pay every month.
The survey by Standard Life, found that when asked about borrowing to buy a house, 51% of respondents said that they were not aware that they could borrow based on affordability. The poll also showed that most people look for headline rates when they choose their mortgage, and 46% consider flexible mortgage products to be a better choice.
Our view
It makes sense to review how people borrow money. However, as ever the danger is, in debt riddled Britain, that people will borrow beyond their means and lenders will abuse the position and lend too much.