New research highlights growing concerns about discrimination and a lack of specialised support
Nearly three in 10 UK adults — equivalent to 14.8 million people — report that past credit issues have hindered their ability to secure a mortgage, according to research by Bluestone Mortgages.
The study, conducted by Pegasus Insight among 2,000 UK adults on behalf of the specialist lender, found that one in seven consumers (14%) had been turned down by a mortgage lender, with this figure rising to 38% among those with adverse credit histories.
Furthermore, 25% of applicants with adverse credit who were declined a mortgage said they were not offered access to a specialist lender, underscoring a lack of guidance within the industry.
The research also highlights growing concerns about discrimination based on credit history. Nearly one in five consumers (18%) believe they have been discriminated against by lenders due to their credit history, a figure that jumps to 51% for those with adverse credit.
This perception is impacting consumer confidence, with 28% of those with adverse credit expressing no confidence in their ability to secure a mortgage, compared to 12% of the general population. Only 5% of consumers with adverse credit felt completely confident in obtaining a mortgage, compared to 24% of the broader consumer base.
“Customers with adverse credit histories face significant obstacles in their journey to secure a mortgage,” said Ryan Davies (pictured), strategy director at Bluestone Mortgages. “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.”
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