You are here: Home - Uncategorized -

Nearly fifth of potential mortgage borrowers rejected in past year

0
Written by:
21/12/2022
More than a thousand hopeful borrowers have been rejected for a mortgage in the past year, but demand for homeownership remains strong.

According to research from specialist mortgage lender Together, which surveyed around 7,000 adults, the reasons behind rejections ranged from adverse credit to being turned down for government schemes.

Around 26% said they had planned to use government schemes like Help to Buy or shared ownership but they had been rejected.

Nearly a third said having a County Court Judgement (CCJ) was a key reason for being turned down for a mortgage.

 

 

Bad debt incoming

Almost a fifth of all UK adults are categorised as having adverse credit.

Adverse credit covers those who have missed payments on a loan or credit card. Of those surveyed, 7% said they had missed payments on unsecured loans while 6% said they had entered into debt management plans .

Financial rejection also takes an emotional toll, with 32% saying it left them feeling worried about the future, 26% said it made them depressed and 23% said it made them feel like a failure.

Pete Ball, personal finance chief executive at Together said: “It is imperative that the mortgage market works towards becoming more inclusive, especially as today’s the cost of living crisis will likely have a long-term impact on our financial wellbeing.

“As the cost of living crisis shows no signs of letting up, we anticipate the proportion of those with adverse credit is set to rise in the immediate-term. We will see more potential borrowers being overlooked by some mainstream lenders because of factors such as missing a bill payment on a credit card or another type of unsecured loan.”

He continued: “These credit blips may date back years – or be something the applicant is completely unaware exists – but can have repercussions on their ability to successfully apply for a mortgage.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week