Young people more at risk of being rejected for a mortgage

Ryan Bembridge

January 28, 2019

Young people are much more likely to be rejected for a mortgage, with four in 10 (41%) 18 to 24-year-old homeowners being turned down for a mortgage before buying their current home.

Which? Mortgage Advisers research found the proportion of homeowners with failed applications dropped to 15% for 35 to 44-year-olds and 8% for those aged 45 to 50.

This data may reflect that young people have had less time to build up a strong credit profile.

David Blake, principal mortgage adviser, Which? Mortgage Advisers, said: “While a mortgage rejection isn’t the end of the road when buying a home, it can clearly have a detrimental impact on the rest of your home-buying experience.

“Ensure you have all the documents and relevant information you need before submitting your mortgage application and don’t over-stretch your finances by applying for a loan that you won’t be able to afford.”

Overall one in six (16%) mortgage holders has been rejected for a mortgage in the past.

The most likely areas for mortgage rejections were London (29%) and the West Midlands (22%).

Of those rejected for a mortgage, over half (54%) took more than three months to be accepted for another mortgage, highlighting that it can significantly delay the process of buying a house.

It can also affect a borrower’s credit score, highlighting the importance of getting advice before applying for a mortgage.

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