Seventy-two per cent of mortgage enquiries are coming from people who have already been refused a mortgage for not being the ‘perfect candidate,’ according to new findings from Mortgage Experience.

The broker firm has suggested some of the main reasons people have been declined a mortgage are down to issues such as being self-employed, or not meeting strict lending criteria.

Mortgage Experience CEO, Shaun Evans, commented: “The vast majority of our work comes from either people who have been refused a mortgage, or can’t get a good rate, because they aren’t an ideal candidate.

“While it’s obviously critical to ensure people buy based on what they can afford, this difficulty in getting mortgages or becoming a prisoner to an existing mortgage on a high rate, is still a major issue.”

“I’ve seen people denied mortgages simply because of their employment type, particularly if they are self-employed. The issue we have is that the mainstream criteria set down doesn’t really reflect changing trends in the market, with what people want to buy, how they work and how they spend.”

Mortgage Experience’s new findings, backed by a report from Which, revealed that one in six of current mortgage holders have been refused a mortgage in the past, whilst a different study from YouGov suggested 54% of potential home buyers have been dropping out of the process altogether – because they were unable to get a loan to purchase a property.

The most common reasons for being denied a mortgage, according to Shaun, are either based on credit history, employment status or having an inadequate deposit.

He continued: “The secret to actually getting a good mortgage deal is to shop around. So many people come to us completely disheartened after going on comparison sites and then failing once they’ve gone through the process, or (haven’t got) the rate they thought was available because of their circumstances.

“It’s almost a vicious circle as well, because if you get refused for a mortgage when you go through this process, this could have a further negative impact on your credit rating. Brokers are one of the best go to points because they’ll look at what your personal circumstances are and use their own knowledge to find the lenders that will offer the best deals for those candidates.”

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