Around one in ten people who have had an unsuccessful mortgage application cite being self employed as the main reason they were unsuccessful, according to new figures from Countrywide. A total of 11% were not given a reason why their mortgage application was unsuccessful.
The YouGov survey of 2,000 UK adults shows that nearly a third who have had an unsuccessful mortgage application said they initially spoke to a bank but were unsuccessful so they went to a broker and their mortgage application was then successful.
The two main reasons given by people who had unsuccessful mortgage applications were insufficient earnings/income (29 per cent) and credit score too low (24 per cent).
Around 18 per cent of 25-34 year olds said that being unable to afford mortgage repayments was preventing them from buying a property at this time. The report also revealed that more than half of all 35-44 and 45-54 year old adults own their home through a mortgage/loan.
Grenville Turner, Chief Executive of Countrywide, said: "These findings reaffirm what we see on a daily basis. The shortage of appropriate housing at the right price coupled with lending issues is creating a perfect storm for the housing market. The issue of deposit affordability remains the major barrier to purchasing a home for renters.
"Banks need to be encouraged to lend at more favourable rates, with the introduction of higher loan to value mortgage products, to enable prospective buyers with a deposit of 10% or even 5% get on the property ladder. Restoration of the mortgage market would help unlock the current stagnated property chain with the availability of more accessible mortgages, so that prospective property purchasers, both first-time buyers and downsizers, can buy their home at a price they can afford and in a location they want to live in."