Credit blips impact 53% of adult’s ability to get a mortgage

13th June 2023

New research by lender, Together has found that over half (53%) of adults with a credit blip have revealed that it has impacted their ability to get a mortgage, with the figures rising to 86% of those aged 18-34.

The specialist lender’s survey also shows that among those who’ve had a mortgage application rejected, a fifth (20%) couldn’t secure the mortgage they needed in time so lost their ideal home and 16% gave up on purchasing altogether.

According to Together, others had to go back to the drawing board and resort to more drastic measures, with a quarter (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.

For those rejected outright, 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.”