Majority of UK adults with credit blips face challenges getting a mortgage

Over half of UK adults have had their ability to get a mortgage impacted by having a credit blip, according to new research from Together.

Related topics:  Finance,  mortgages
Property | Reporter
13th June 2023
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"There is a trend in mortgage applicants, particularly amongst the younger demographic, continually facing issues securing mortgages due to having CCJs, or blips on their record"

The cost-of-living crisis and rising inflation are making it far harder to get on the housing ladder due to affordability issues and the resulting impact on credit scores.

New research Together has found that 53% of UK adults with a credit blip have faced challenges when getting a mortgage, rising to 86% of those aged 18-34.

Among those who’ve had a mortgage application rejected, 20% couldn’t secure the mortgage they needed in time so lost their dream home and 16% gave up on purchasing altogether.

Others had to resort to more drastic measures, with 23% relying heavily on family and friends to act as a guarantor – opening themselves up to possible repayment anxiety in the future - and 17% draining all their savings just to be able to buy with a cash deposit.

Among those who had been turned down, 32% say the result left them feeling worried for their future, 26% said it made them depressed and 23% said they felt like a failure.

James Briggs, Head of Personal Finance Intermediary Sales at Together, said: “Our research clearly shows there is a trend in mortgage applicants, particularly amongst the younger demographic, continually facing issues securing mortgages due to having CCJs, or blips on their record. 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.

“Brokers may be approached by home-movers or first-time buyers looking for advice about finance needed to purchase a property despite having a blip on their record. They should feel encouraged that there are specialist lenders like Together, who are best positioned to support these cases, rather than the automated approach of high street banks.”

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