Applying for a mortgage is often considered one of the most stressful decisions people can make with a significant impact on their mental health – even more so if you’re considered a ‘non-standard’ applicant by high street lenders.
Research from Together’s residential mortgage market study found that 16% of applicants found themselves stressed during the application process, with those who had thin or impaired credit or with a non-standard buying situation more likely to say they felt stressed (26%).
24% said they struggled most with gathering the necessary application information, rising to 36% of those with a non-standard buying situation. Following mortgage rejection, 32% said the result left them feeling worried for their future and 26% said it made them depressed and 23% said they felt like a failure.
Scott Clay, Head of Introducers at Together, said: “Our research speaks for itself – buying a house is an extremely stressful experience. But it doesn’t have to be this way, it’s clear that many of those who struggle to be accepted for a mortgage are perfectly viable candidates who simply fall foul because of the strict criteria of mainstream lenders.
“In 2023 we expect there to be a growing need for specialist lenders to help support the likely rise in non-standard applicants and those requiring additional support as people’s finances are under increased pressure.
“The mortgage industry and the Government need to work together to resolve these long-standing issues so that the homeownership process carries less of an emotional toll to give prospective homeowners the confidence, at the start of the New Year, that their property ambitions are achievable.”
