"These findings are a damning indictment of the inefficient mortgage application processes delivered by banks’ archaic legacy systems."
- Jerry Mulle, UK managing director at Ohpen
New research has revealed the emotional and economic impact of the mortgage application process on consumers.
The study by core banking SaaS provider, Ohpen, found that half of people who have applied for a mortgage felt anxiety.
More than one in ten (13%) people that have applied for a mortgage would rather be stuck in a lift for 12 hours straight than go through the process again – rising to more than one in five (23%) of under 25s. More than one in eight (14%) would also rather listen to roadworks continuously for 4 hours.
Although all age groups had some level of stress regarding the application process, there is a stark generational divide. Nearly three times as many Gen Zs (28%) found the mortgage application process significantly more stressful than moving house than Baby Boomers (11%).
This is creating feelings of regret, with 38% of homeowning 24–35-year-olds wishing they had chosen to rent for longer instead of going through the mortgage application process.
Mortgage stress impacting relationships, work and lifestyles
The stress of lengthy and inefficient mortgage application processes is impacting working habits, lifestyles and relationships. A quarter of 25–34-year-olds surveyed admit to comfort eating due to stress triggered by their mortgage applications, while a further 26% started forgetting things they would normally remember, such as food shopping or texting a friend on their birthday.
While almost seven in ten (69%) over 55s didn’t have to give up any lifestyle habits while applying for a mortgage, the vast majority (89%) of Gen Zs (18–24-year-olds) admitted they did, with almost a fifth giving up on self-care (18%), exercising (22%), and even spending time with friends and family (22%).
People also confess to crying more, including at work, and drinking more alcohol due to stress triggered by the application process.
Interestingly, people that applied for a mortgage with a partner or spouse are more likely to relate the application process with stress (51%) than those who applied on their own (45%), or with their friends (44%).
Economic impact of inefficient and stressful mortgage processes
The stress of mortgage application processes is also having an impact on workplace productivity – the falling rate of which Keir Starmer has called out as a priority for the new government. Nearly a quarter (22%) of younger adults surveyed (18–24-year-olds) admit to calling in sick to work due to stress triggered by their mortgage applications, and more than one in ten respondents (12%) wished they knew how much time at work they would have been distracted by doing mortgage admin before applying.
Call to action for banks and government
Three in ten people (30%) said a better understanding of the process beforehand would have relieved stress during the mortgage application process, as well as fewer delays in the process (37%) and less paperwork (36%). 15% also called for better online tools.
Four in five people that have applied for a mortgage (81%) believe mortgages and financial education should be on the secondary school curriculum, with many admitting they didn’t understand basic mortgage terms before the application process.
Jerry Mulle, UK managing director at Ohpen, said: “These findings are a damning indictment of the inefficient mortgage application processes delivered by banks’ archaic legacy systems. Hundreds of thousands of Brits apply for a mortgage every year, and so the total impact on mental health and wellbeing, consumer spending and productivity is significant. The generational gap in the impact of mortgage applications on wellbeing and consumer spending makes it clear that banks’ processes have not modernised – what was cutting edge 40 years ago is no longer fit for purpose.
“We need to see a coordinated effort to make the process more transparent and inclusive from the outset, and speed up the application process by taking complex legacy technology out of the equation and enabling better real-time data sharing between all the stakeholders involved in the home-buying journey.”
