Research from Ohpen found that half (46%) of mortgage applicants associate the process with anxiety.
More than one in 10 (13%) would prefer to be trapped in a lift for 12 hours than go through the application again, a sentiment echoed by 23% of those under 25.
Additionally, 14% would choose to listen to roadworks for four hours instead.
Nearly three-times as many Gen Z applicants (28%) found the process more stressful than moving house, compared to only 11% of Baby Boomers.
Two-fifths (38%) of homeowning 24 to 35-year-olds wished they had rented longer instead.
A quarter of 25 to 34-year-olds admitted to comfort eating due to stress, while many reported forgetting important tasks.
In contrast, 69% of those over-55 did not experience lifestyle changes during the application process, whereas 89% of Gen Zs felt the need to give up self-care, exercise, and time with friends due to the stress.
The report also highlighted the economic implications of stressful mortgage processes, with nearly a quarter (22%) of younger adults admitting to calling in sick due to the stress.
Three in 10 (30%) respondents believed that a better understanding of the process could have reduced their anxiety, alongside calls for fewer delays and less paperwork.
Ohpen advocated for improved financial education, arguing that knowledge about mortgages should be included in school curricula.
Four in five (81%) mortgage applicants agreed that better transparency is needed.
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.”
