Over the past five years, around 1.57 million mortgage applications, worth £227 billion or an average of £144,600, were rejected.
This is according to new research from Castle Trust, the partnership mortgage provider.
| Region | Number of people who have had mortgage applications rejected over the past five years | Percentage of the national total |
| London | 450,000 | 29% |
| North West | 191,000 | 12% |
| Yorkshire & Humberside | 189,000 | 12% |
| West Midlands | 165,000 | 10.5% |
| North East | 112,000 | 7% |
| South West | 111,000 | 7% |
| South East | 104,000 | 7% |
| Scotland | 99,000 | 6% |
| East Midlands | 60,000 | 4% |
| East of England | 47,000 | 3% |
| Wales | 40,000 | 2.5% |
Of those people interviewed who have been rejected for a mortgage over the past five years, 60% were first-time buyers. 22% were to move to another home, and 11% were for re-mortgages. Some 3% were to take a further advance on an existing mortgage, with 4% for ‘other purposes’.
Castle Trust argues that it could become harder to secure a mortgage because further research reveals that because they now have to hold more in capital reserves, 71% of IFAs believe the amount banks will be willing to lend will be lower than historical levels. Indeed, 72% anticipate that mortgage rates will increase over the next five years.
“Buying a home is the most important financial decision most of us will ever make,” said Sean Oldfield, chief executive officer, Castle Trust.
“Our Partnership Mortgage can make that decision safer for homebuyers because they only pay interest each month on 60% of the value of their home with a deposit or equity of 20%. It is also safer for lenders, who can lend to more customers with less capital per customer.”