An estimated 22% of individuals blame bad credit history as the main reason why they are unable to get a mortgage, according to a survey from Haysto.
Almost three quarters (70%) of individuals in the survey were unwilling to apply for a mortgage because they think their poor credit rating will prevent them being eligible.
Buckinghamshire Building Society outlined that a couple were refused a mortgage due to an unpaid mobile bill from five years previous, worth just £24.
There are a number of ways in which mortgage companies can evaluate someone is eligibility for a mortgage.
The traditional method, used by many high street banks, uses an in-depth check of the person’s credit rating through a credit agency.
This method, according to the lender, can be a lengthy process and does not take into account the reasons why that person’s credit score is high or low.
An alternative option is using credit searches, used by some building societies.
The survey results were based off of data collected from over 2,0oo people.
Tim Vigeon, head of lending at Buckinghamshire Building Society, said: “We pride ourselves on going above and beyond to find solutions for even the most complicated of cases.
“Our human underwriting allows us to look at cases on an individual basis to find the best solution based on that person’s individual circumstances.”