New Research Reveals Income Levels Named the Biggest Roadblock to Mortgage Approvals

London, 15 October – New research from LendInvest Mortgages (LSE: LINV), a leading UK fintech platform with a focus on specialist lending, has revealed that 26% of aspiring homebuyers have been denied a mortgage at some point.

Of those turned down, over one-fifth (22%) of aspiring homebuyers were turned away for a mortgage due to their income levels. Credit histories were the main reason for 18%, and age and affordability were the main reasons for 16%. 

The research also revealed that for those denied a mortgage, 40% applied directly to a high street lender, an equal amount used a mortgage intermediary and 25% applied directly to a non high-street lender.

For those who were denied a mortgage application, the bulk of respondents were left feeling stressed, embarrassed, frustrated and even ashamed. However, for 14%, they were left feeling determined and hopeful after the experience. 

The survey of 1,000 UK adults seeking to purchase or remortgage a home within the next 5 years, conducted by Opinium Research, also found that over one-third of respondents (35%) felt discouraged to even apply for a mortgage by high street lenders and banks due to their income or employment status. That figure jumps to 40% for those aged 18 to 34. 

Commenting on the research, Paula Mercer, Sales Director at LendInvest, says:  “This data solidifies that for many, factors like income levels and credit histories are the biggest blockers to purchasing or remortgaging a home.

The impact of getting denied a mortgage is significant, leaving many feeling stressed, embarrassed, frustrated and even ashamed.  With 40% of rejected mortgage applications coming directly from traditional lenders, this research highlights the crucial role of mortgage brokers who champion specialist lenders, who often can offer solutions beyond the scope of high street banks. 

At LendInvest, we realise that there is no ‘one-size-fits-all’ approach to mortgages, and we take pride in our lending criteria that can support those with complex income streams, the self-employed and those with the occasional blip on their credit history.”