More than two-fifths (44%) of customers traditionally underserved by high street lenders are denied financial products and services, with a quarter of them rejected for a mortgage, new research from Bluestone Mortgages reveals.
Research, which was undertaken by Opinium and surveyed 1,003 UK adults, showed that 33% were turned down for credit cards, 23% for mortgages and 12% for loans.
Those most likely to be denied a financial product or service are those who missed a payment that impacted their credit score, compared to 28% for the self-employed.
Bluestone’s research also revealed that younger potential borrowers are more likely to be turned down by lenders.
More than three quarters (77%) of people aged 18 to 34 have been refused, compared to 55% for those aged 35 to 44 and 13% for those aged 55 and over.
Non-vanilla customers who were turned down for a mortgage application were most likely to be turned down by big banks (84%), followed by their primary bank (23%).
However, 88% of lenders then provided additional advice on how to get a mortgage.
The most popular advice was to recommend another lender (82%), with 13% recommending a mortgage broker. After the referral, 98% were able to get a mortgage.
Bluestone Mortgages Managing Director Steve Seal comments, “It is disheartening to see how many people are being denied financial products and services. In an environment where inflationary pressures continue to mount and the cost of living increases, the number of customers who do not fit the “vanilla” profile will only grow. »