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Almost a third of adults say prior credit blips are preventing them getting a mortgage
Around 29% of adults say that previous blips in their credit history have limited their ability to secure a mortgage, a report has found.
According to Bluestone Mortgages‘ research, which surveyed around 2,000 adults – of which 493 adults had one or more adverse financial event – approximately 14% of consumers have been turned away from a mortgage lender, rising to 38% among those with adverse credit.
A quarter of those with adverse credit whose mortgage was declined said they weren’t offered access to a specialist lender, showing a lack of signposting in the industry.
A fifth of consumers said that they felt like they had been discriminated against by lenders due to their credit history, going up to more than half for those with adverse credit history.
Around 28% of adverse credit customers said that they did not feel confident about securing a mortgage, compared to 12% for those without.
A quarter said they feel completely confident in their ability to secure a mortgage, falling to 5% for those with adverse credit.
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Ryan Davies, strategy director at Bluestone Mortgages, said: “Customers with adverse credit histories face significant obstacles in their journey to secure a mortgage. These challenges are not isolated incidents but a common experience for a growing cohort of the UK population.
“With missed payments on the rise and consumer confidence down, brokers must be prepared for the growing number of adverse credit customers looking for specialised support and direction.
“It is our responsibility to champion these consumers, ensuring they receive the support and resources they need to improve their credit history and achieve their homeownership goals. Together, we can make a significant difference in addressing the disparities in mortgage accessibility for those with adverse credit.”