Over half of those with credit blips still struggle to get a mortgage

High cost-of-living and inflationary pressures are taking its toll on households, making it harder to get on the housing ladder due to affordability issues and the resulting impact on credit scores, according to new analysis from Together.

Its recent survey found that over half (53%) of UK adults say a credit blip has impacted their ability to get a mortgage, rising to 86% of those aged 18-34.

Among those who’ve had a mortgage application rejected, a fifth (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 go back to the drawing board, with a quarter (23%) relying on family and friends to act as a guarantor and 17% using savings to buy with a cash deposit.

For those outright rejected, there is also a significant emotional penalty. 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.”