75% of first time buyers think banks must lend responsibly despite the fact it will stop some people getting a mortgage, according to a new survey from Shelter.
The charity is currently calling on the FSA to implement reforms set out in the Mortgage Market Review and for the government to support this.
The exclusive YouGov poll also found that 79% of first time buyers think banks and building societies lent irresponsibly before the credit crunch and 38% do not think they can be trusted to lend responsibly in the future.
Despite high costs of housing, respondents did not agree that easy credit was the answer to overpriced housing with 84% of first time buyers believing that banks should only offer mortgages to borrowers who can prove they can afford it.
83% strongly agreed that lenders should check a borrower’s income before giving them a loan, while 75% believe banks should make sure borrowers have enough cash to pay the mortgage once other costs have been taken into account.
53% of first time buyers agree the high cost of homes, not the availability of credit (41%), is the biggest barrier to them getting on the ladder. 28% said they had been offered a bigger mortgage than they had asked for, or knew someone that had.
Campbell Robb, chief executive of Shelter said: “This survey shows people really want simple