Alliance & Leicester has revealed that many potential house buyers are staying off the property ladder because they fear the cost of a mortgage would be too high.
In the building society's quarterly Mortgages movingimproving index, surveys found that more than six million of British adults would rather rent than buy a home, because of concerns about costs.
Nearly a third of those who said they would rather rent, claimed this was because they thought the cost would be too high, while 17 per cent said a mortgage seemed like too great a commitment.
Stephen Leonard, director of mortgages at Alliance & Leicester, said: "It seems the cost of a mortgage is the main reason why many people choose to stay off the property ladder.
"Of those who would rather rent, nearly half think a mortgage is too expensive or too much of a commitment.
"People are afraid that mortgages are unaffordable but the reality is that even though a mortgage is a financial responsibility, it needn’t be a burden if people get the right deal to suit their circumstances.
"There is good news for these ‘mortgage-phobes’ - the mortgage market is becoming increasingly competitive and borrowers can take advantage of the increased rivalry between lenders to provide the best products and rates."To read more about mortgages, click here.
© Adfero Ltd