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.
source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-findings-show-high-rejection-rate-for-first-time-buyers/
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