Millions of Brits are being discriminated against by mortgage lenders because of past financial difficulties, a shocking new study has revealed.
The research, conducted by Bluestone Mortgages, found that a staggering 29% of UK adults – 14.8 million people – say their credit history has made it harder to get a mortgage.
And for those with so-called “adverse credit”, meaning marks on their credit file such as missed payments or defaults, the situation is even worse. A massive 38% have been rejected by lenders – that’s more than one in three!
Worryingly, a quarter of those rejected were not even told about the option of going to a specialist lender who may be able to help. This lack of information is leaving many feeling trapped and disheartened.
The study also exposed the emotional toll of credit discrimination, with 18% of all consumers feeling judged by lenders. This figure rises to 51% among those with past credit issues. This discrimination is clearly impacting people’s confidence, with 28% of adverse credit borrowers feeling completely hopeless about their chances of getting a mortgage.
Ryan Davies, a mortgage expert at Bluestone Mortgages, is calling for change. He said: “It’s clear that those with blips on their credit history are facing a huge uphill battle. With the cost of living crisis biting, and more people struggling to keep up with bills, this problem is only going to get worse.
“Mortgage brokers and lenders have a duty to support these customers, not shut them out. We need to make sure everyone has access to the advice and help they need to improve their credit score and achieve their dream of owning a home.”