According to Shawbrook’s research, one in three adults has trouble getting a mortgage.
The lender’s Home A Loans report found that 30% of UK adults have tried to get a mortgage more than once, with 13% trying multiple times.
Only one in five (20%) people are completely confident about getting a mortgage, with this figure falling to 10% for those with poor credit history.
Shawbrook found that while the final mortgage approval rate was 71 per cent, this dropped sharply for those with more complex financial situations.
More than half (54%) of people with damaged credit successfully found a mortgage, compared with only 46% of first-time buyers.
Among people who were denied a mortgage, the most common reason was poor credit score, at 35%.
Consumers also cited income instability (26%), late payments (21%) and unaffordability (21%) as the main reasons for the decline in mortgage lending.
Shawbrook’s research found that just one in five (22%) respondents used a broker, a finding the lender said was “clearly inconsistent with the general population”. Similarly, 12% said a lack of access to mortgage advice was a major barrier to home ownership.
However, among those who use intermediaries, satisfaction is extremely high. Nearly all (97%) said the broker helped them find the right lender, another 97% valued their expertise, and 95% praised them for simplifying paperwork and administration.
Steve Griffiths, commercial director of retail mortgages at Shawbrook, said: “As financial stress continues to take its toll, the situation for customers will become more complex.
“In this environment, brokers have a vital role to play in providing clients with the options available and helping them find support where they need it. By doing so, they can help bridge the gap between financial challenges and financial possibilities.”
Last month, Shawbrook confirmed plans to list on the London Stock Exchange, potentially valuing it at £2 billion.
