"With 40% of rejected mortgage applications coming directly from traditional lenders, this research highlights the crucial role of mortgage brokers who champion specialist lenders, who often can offer solutions beyond the scope of high street banks"
- Paula Mercer - LendInvest
New research from LendInvest Mortgages shows that over a quarter (26%) of aspiring homebuyers have been refused a mortgage at some point. Of those turned down, 22% cited income levels as the reason, while 18% reported credit history issues and 16% identified age or affordability as the main barriers.
According to the findings of a survey of 1,000 UK adults planning to purchase or remortgage within the next five years, among applicants who were denied, 40% applied directly to a high street lender, 40% went through a mortgage intermediary, and 25% applied directly to a non-high-street lender.
Respondents who were refused a mortgage often reported feeling stressed, embarrassed, frustrated or ashamed, though 14% said the experience left them feeling determined and hopeful.
The survey, conducted by Opinium Research, also revealed that 35% of respondents felt discouraged from applying for a mortgage due to income or employment concerns, rising to 40% among 18- to 34-year-olds.
Paula Mercer (pictured), sales director at LendInvest, said: "This data solidifies that for many, factors like income levels and credit histories are the biggest blockers to purchasing or remortgaging a home."
"The impact of getting denied a mortgage is significant, leaving many feeling stressed, embarrassed, frustrated and even ashamed. With 40% of rejected mortgage applications coming directly from traditional lenders, this research highlights the crucial role of mortgage brokers who champion specialist lenders, who often can offer solutions beyond the scope of high street banks."
Mercer concluded, “At LendInvest, we realise that there is no ‘one-size-fits-all’ approach to mortgages, and we take pride in our lending criteria that can support those with complex income streams, the self-employed and those with the occasional blip on their credit history.”
