Thousands of mortgage applicants are facing the emotional burden of being locked out of a “broken” mainstream market. This is according to new research published in Togetter's Residential Real Estate Market Report.
Fast forward to 2022, and in the aftermath of the coronavirus crisis, we have seen an increase in the number of non-standard mortgage applicants (applicants who do not neatly fit the automated criteria of mainstream banks and building societies) over the past one to five years. 19% were rejected. 
Two years on, Togetter's research shows that mortgage approval rates remain painfully low for these applicants with 'non-standard' needs, with 7% still struggling to secure a mortgage. It became clear.
This is for people who wish to purchase property under a government-backed shared ownership scheme, or who may be refused a loan due to age, employment status, poor credit history, or a combination of these factors. You may be eligible.
For example, two in five (39%) potential borrowers looking to get on the mortgage ladder say their mortgage application has been rejected because they are buying with shared ownership.
Nearly a third (29%) were rejected because they had a poor credit history or bad credit score, 27% said it was because they were over 55 or divorced, and 22% He answered that it was because he was self-employed.
Together research shows a significant need to support these underserved borrowers, with the specialist lending market expected to grow from £32bn to £54bn between 2023 and 2029. , is predicted to increase by 70%.
And the stress of rejection due to these factors is impacting applicants' mental health. For example, a quarter of “non-standard” applicants who tried to get a mortgage had felt stressed or upset during the process, including those who were self-employed, elderly or divorced. 14% of this group have also felt criticized when taking out a mortgage, rising to almost a quarter (24%) of those with bad or declining credit.
When asked what they found difficult when applying for a mortgage, 32% said it was the time they spent gathering information for the application, and 17% said it was the time it took to complete all the requirements for a successful application. answered that it was too difficult or too time consuming.
Ryan Etchells, chief commercial officer at Together, said: “Life and work as we know has evolved and we no longer follow the 'one size fits all' lending approach that worked in previous generations. The number of people is increasing.''
“To support more people with property ambitions, we are working with a wide range of industries to make the application process as seamless as possible, eliminating the outdated systems, processes that cause many property We need to continue to challenge stereotypes and the access barriers that exist. ”
He added: “Chancellor Rachel Reeves' October budget included an important commitment to solidify plans for next year's affordable housing and homebuilding initiatives. But what's missing is… Affordability and housing in the UK government intervention at an industry level to re-evaluate exactly how to bridge the issue of ownership, while specialist lenders were locked out of home ownership by the collapse of the mainstream mortgage market. We're trying to continue to help people.”
