Almost half, or 49%, of adults in their 30s worry they will never be ‘mortgage-ready’ to lenders, with many fears based on misunderstandings around the mortgage process, according to Experian.

It adds 42% in their 20s harbour the same worries. 

Nearly a third of consumers, or 27%, said they were unsure of how to prepare to get a mortgage.

The credit score firm says consumer fears that they ‘can’t get a mortgage if you’re in debt’ was the top concern.

It found that 62% of those asked said, “it was either not possible to secure a mortgage when in debt, or were unsure whether they could do so”.

The firm says: “Any existing debt you have will be factored into a mortgage lender’s assessment of your ‘affordability’. 

“Making regular, on time payments to reduce any existing debt can increase your credit score and help you appear more attractive and mortgage-ready to lenders.”

The second most common misconception was that ‘comparing mortgages online can impact your credit score’.

It found that 58% of “consumers either thought comparing mortgages online would affect their credit score, or they were unsure if it would”.

The credit company says: “Searching for mortgages before you apply has no impact on our credit score”. 

It adds that free mortgage eligibility checkers “allow first-time buyers and those wanting to move home to see how much they can borrow, as well as the different mortgage options and interest rates on offer”.

The third most common fiction around homebuying was that ‘you should only apply for a mortgage once you’ve found the property you want’.

The firm adds 54% of “people surveyed thought that this was true, or were unsure about this”.

The company says: “In fact, people should start the mortgage process earlier, and before finding the home they want to buy. You can secure a decision in principle with a lender before formally attempting to secure the mortgage loan, which will give you an accurate idea of what you can borrow.

“This will help guide your property search as it gives you an idea of budget, and some estate agents could expect people to have a principle offer in place before a property is bid on, or even viewed.”

However, the urge to own a home remains strong, with 38% of Brits saying they were considering buying a new home in the next five years, rising to 66% of adults in their 30s and 67% in their 20s.

It adds that people “are prepared to stretch themselves to secure” their own home, with nearly 31% saying they would “buy a property even though it could mean a very small amount of disposable income left each month”.

Experian head of consumer affairs James Jones says: “It’s important to understand what properties are in your price range and the types of mortgages available to you.

“With our research suggesting that many are prepared to stretch their budget and purchase a property at the top of their price range, it goes to show how much homeownership is a source of pride and joy for people in the UK. 

“Taking the time to improve your credit score when searching for your perfect home will help you access the best mortgage rates and, as a result, have more disposable income every month to spend on other things.”

Experian commissioned research firm Opinium to poll a nationally representative sample of 2,000 adults online about mortgage aspirations, between 18 and 21 June.