- 11 February 2021
- Posted by: mikey0809
- Category: Mortgage
A major problem to mortgage applications is the concern over credit, with 70% of people concerned that buying a house will be impossible due to their credit score, this data from mortgage broker platform Haysto.
“The fear of credit scores is preventing people from making their home buying dream a reality.” said by the survey
Just over one in five, or 22%, of possible homeowners say they have been turned down for a mortgage because of their bad credit history.
Approximately 29% of consumers, say they don’t think their credit score is ‘good’ or ‘excellent’, while 11% have no idea what their credit score is.
Paul Coss, Haysto co-founder says: “There are many various reasons why people miss monthly payments and find themselves labelled as ‘bad credit’. This last year has thrown numerous curve balls into the mix- from furlough to redundancy-with many people taking home less money and perhaps missing monthly payments. That doesn’t mean they are not trustworthy and should be penalised for years to come.”
He also adds: “Some banks and mortgage brokers will make you feel like a bad person when they refuse to give you a mortgage. Automated online mortgage advisors won’t judge for themselves. It’s a case of: Bad credit means computer says ‘No’. But even if you have bad credit, you can still get a mortgage. You’ll just have less options open to you than if you had a perfect credit score.”
The pandemic has beleaguered the economy since last March, with thousands of workers placed on furlough, stretching household budgets.
Earlier this month, Bank of England governor Andrew Bailey forecast that the UK economy is expected to shrink 4.2 per cent in the first three months of the year, amid tighter lockdown restrictions to slow the spread of the virus.
But the governor expects a rebound this spring as consumer confidence returns, as a result of the country’s rapid Covid-19 vaccination programme.
Haysto did a survey interviewing 2,012 UK adults.