53% of UK adults with a credit blip has impacted their ability to get a mortgage, rising to 86% of those aged 18-34, according to new research from specialist lender, Together.
Among those who’ve had a mortgage application rejected, a fifth (20%) couldn’t secure the mortgage they needed in time so lost their dream home and 16% gave up on purchasing altogether.
In response, 23% said they had relied heavily on family and friends to act as a guarantor – opening themselves up to possible repayment anxiety in the future – and 17% used up all their savings just to be able to buy with a cash deposit.
Among those who had been turned down, 32% say the result left them feeling worried for their future, 26% said it made them depressed and 23% said they felt 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 CCJs, 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 highstreet mortgage.
“Brokers may be approached by home-movers 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.”
