Nearly three in 10 adults – equivalent to 14.8 million – have found that blips in their credit history have hindered their ability to secure a mortgage, research by Bluestone Mortgages has revealed.
One in seven (14%) consumers had been turned away by a mortgage lender in the past, rising to 38% for those with adverse credit.
A quarter (25%) of those with adverse credit whose mortgage application was declined said they were not offered access to a specialist lender, highlighting a lack of signposting in the industry.
A fifth (18%) of consumers felt they were discriminated against by lenders due to their credit history.
This number rose to more than half (51%) among those with adverse credit history.
Nearly one in three (28%) of adverse credit customers were not confident at all, compared to 12% for the average consumer.
Conversely, 24% of consumers felt completely confident in their ability to secure a mortgage, but this dropped to just 5% among those with adverse credit.
Ryan Davies, strategy director of Bluestone Mortgages, said: “Customers with adverse credit histories face significant obstacles in their journey to secure a mortgage.
“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.”
Davies added: “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.”
