Aldermore, the specialist finance lender, has published the results from a survey of 1,000 prospective homeowners. The findings show that only 19% of first-time buyers were successful on their first attempt to get a mortgage in the last year, with 43% experiencing multiple rejections. Before the pandemic, 48% were successful on the first time of trying.
A number of factors contributed to the rejections, with many first-time buyers being turned away for multiple reasons. Poor credit history, low deposits, low income or being self-employed, overdrafts, student loans and credit card debt were all barriers to getting a mortgage. In light of these findings, Aldermore have highlighted the increased amount of options that are now available.
Jon Cooper, head of mortgage distribution at Aldermore, said: “The growth of specialist lenders – who with human underwriting dig into the detail of more complicated applications – have opened the door for those with complicated income streams or credit issues in their past to find a pathway to home ownership.
“The home buying process can be confusing and complicated, especially as this generation of first-time buyer is more diverse in financial circumstances than ever before.”
He added: “It may feel daunting at times so we would recommend seeking advice from a mortgage broker that can give a whole of market view, and provide options specific to a new buyers’ individual circumstances.”
Original article featured here…
Aldermore recently joined the Mortgage Market Alliance (MMA), which aims to promote the availability of lending for today’s diverse range of customers.