New research has found that more than 50% of adults who have minor issues in their credit histories are finding it more of a struggle to secure a mortgage now.
This research was carried out by Together and the company spoke to roughly 2,000 people across the UK for it. The figures are even worse for younger people with blips in their credit histories, as among those aged between 18 and 34, the percentage that are struggling to get mortgages due to credit issues is 86%.
A further 20% of these respondents told Together that they had ultimately lost out on the home they hoped to buy due to their inability to get a loan in time. 16% of them stated they had abandoned hope of ever being able to buy their own home.
Close to 25% of them said that they had only been able to get a mortgage because they had friends or members of their families who were able to act as guarantors of the loans for mortgage lenders. Another 17% had been forced to pay a deposit using their savings.
James Briggs from Together told Mortgage Solutions:
“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 high street mortgage.”
Mortgage advisors with CeMAP training and knowledge of the specialist market could help these people.