A study, by mortgage advice website Online Mortgage Advisor, has found that thousands of borrowers could be avoiding applying for a mortgage because they wrongly believe they wouldn’t be able to get one.

The research found the vast majority of people thought a low credit score, zero hour contract, payday loan, new job or even parental leave would mean they won’t be able to get a mortgage.

Just 31.6% of the 2,400 respondents recognised that none of the reasons listed automatically prevent someone from getting a mortgage.

47.5% believed a low credit score could stop someone getting a mortgage, 33.4% thought a zero hour contract would be a barrier and 15.6% said a payday loan would stop an application from being accepted.

The same percentage believed starting a new job or being on a probation period would prevent an offer being made and 6.4% said parental leave could cause problems.

Pete Mugleston, managing director at Online Mortgage Advisor, said: “It’s sad to think so many people would avoid applying for a mortgage because they think they’d automatically be turned down as a result of a reason that is actually acceptable for many lenders.

“We may be a long way away from the pre-credit crunch days of no income, no job or asset mortgages and free-for-all credit (and rightly so) but lenders do recognise that people’s circumstances have changed and as such, many have adjusted their criteria to reflect this.

“Lenders will use the information found within a credit report to assess a customer’s eligibility but they won’t make a decision purely based on a credit score.

“At Online Mortgage Advisor, we connect many non-standard borrowers with brokers who are able to help them, whatever their situation. I hope we can encourage more would-be borrowers to apply for a mortgage if they want to be a homeowner and not be put off trying by past mistakes or circumstances that they fear will affect their chances.”