Consumer concerns over credit discrimination on the rise

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29% of UK adults – the equivalent of 14.8 million – report that previous blips in their credit history have hindered their ability to secure a mortgage, according to research by Bluestone Mortgages.

14% of consumers have been turned away by a mortgage lender in the past, with this figure surging to 38% for those with adverse credit. 25% of those with adverse credit whose mortgage application was declined, weren’t offered access to a specialist lender, highlighting a lack of signposting in the industry.

The findings also reveal that discrimination based on credit history is a growing concern. 18% of consumers feel they have been discriminated against by lenders due to their credit history. This number sharply rises to more than half (51%) amongst those with adverse credit history, and is having a significant impact on people’s confidence in securing a mortgage.

28% of adverse credit customers were not confident at all, compared to 12% for the average consumer. Conversely, 24% of consumers feel completely confident in their ability to secure a mortgage, this drops to just 5% among those with adverse credit.

Ryan Davies, strategy director at Bluestone Mortgages, said: “Customers with adverse credit histories face significant obstacles in their journey to secure a mortgage. These challenges are not isolated incidents but a common experience for a growing cohort of the UK population.

“With missed payments on the rise and consumer confidence down, brokers must be prepared for the growing number of adverse credit customers looking for specialised support and direction. It is our responsibility to champion these consumers, ensuring they receive the support and resources they need to improve their credit history and achieve their homeownership goals. Together, we can make a significant difference in addressing the disparities in mortgage accessibility for those with adverse credit.”

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