Haysto: 22% blame bad credit for mortgage refusals
According to a Haysto survey, around 22% of people blame bad credit history as the main reason they are unable to get a mortgage.
Almost three-quarters (70%) of those surveyed were unwilling to apply for a mortgage because they believed their bad credit rating would prevent them from qualifying.
The Buckinghamshire Building Society have pointed out that a couple have been denied a mortgage due to an unpaid mobile phone bill from the past five years worth just £ 24.
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There are a number of ways that mortgage companies can assess a person’s eligibility for a mortgage.
The traditional method, used by many banks, uses a thorough check of the person’s credit rating through a credit bureau.
This method, depending on the lender, can be a long process and does not take into account why that person’s credit rating is high or low.
An alternative option is to use credit searches, used by some construction companies.
The survey results were based on data collected from over 2,000 people.
Tim Vigeon, Loans Officer at the Buckinghamshire Building Society, said: “We are proud to go above and beyond to find solutions for even the most complicated of cases.
“Our human underwriting allows us to review cases on an individual basis to find the best solution based on that person’s individual situation. “