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More than half of adults with credit blip struggle to get a mortgage

  • 12/06/2023
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More than half of adults with credit blip struggle to get a mortgage
Over half of adults with a credit blip have said that it has negatively impacted their ability to get a mortgage, with the proportion rising among younger people, research has found.

According to research from Together, which surveyed around 2,000 adults, 86 per cent of 18 to 34-year-olds with a credit blip said it limited their ability to get a mortgage.

Within those who had been rejected for a mortgage, around 20 per cent could not secure a deal promptly and lost the property, and 16 per cent gave up on buying altogether.

Nearly a quarter said they relied heavily on family and friends to act as a guarantor and 17 per cent said they used all their savings to buy with a cash deposit.

Around a third said this left them feeling worried for their future, and over a quarter said it made them depressed or feel like a failure.

James Briggs, head of personal finance intermediary sales at Together, said: “Our research clearly shows there is a trend in mortgage applicants, particularly amongst the younger demographic, continually facing issues securing mortgages due to having county court judgments (CCJ), or blips on their record.

“As the cost of living crisis puts more pressure on people’s finances, we know the proportion of applicants in this category is only set to rise – opening them up to possible rejection should they try pursuing a high street mortgage.”

He added: “Brokers may be approached by homemovers or first-time buyers looking for advice about finance needed to purchase a property despite having a blip on their record. They should feel encouraged that there are specialist lenders like Together, who are best positioned to support these cases, rather than the automated approach of high street banks.”

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