Almost 1 / 2 of potential first-time purchasers have now been refused for a home loan, relating to brand new research from Aldermore.
Over a 3rd (35%) say they’ve been refused as soon as for a home loan and an additional one out of ten (10%) state they’ve been rejected over and over again.
The top reason behind a rejected mortgage application ended up being that the potential very first time buyer is self-employed or perhaps a agreement worker (20%). This can be a change that is big Aldermore’s pre-lockdown research in March with regards to was just the 9th most typical cause for a credit card applicatoin being declined. Being a total result, nearly 25 % (23%) state they’ve quit being self-employed to secure home financing.
Other reasons behind potential first-time buyers being rejected for the loan include deposit size (18%), salary intake (16%) and dismal credit history (15%).
Almost 25 % (23%) of potential first-time purchasers state credit score is a big concern, with a 3rd (34%) trying to actively enhance their credit history to increase their odds of securing a home loan.