A third (31%) of people who were rejected for a mortgage were left feeling depressed, a survey by specialist mortgage broker platform Haysto has found.
More than half (53%) felt marginalised, unfairly treated and with a sense of injustice as a result, while 21% said the process had left a long-term negative effect on their mental health.
A third of Brits (35%) feel they couldn’t get a good mortgage deal for themselves, wouldn’t want to go through the stress of applying or are unlikely to apply at all for fear of being rejected.
Paul Coss, co-founder of Haysto and himself an experienced mortgage broker, said: “It’s disappointing that the entire mortgage process remains shrouded in misconceptions and confusion as this is having a significant and often unnecessary impact on mental health.
“Self-employment and poor credit histories are on the rise in the UK so a growing number of people applying for mortgages simply don’t fit the traditional eligibility mould. Many are rejected by traditional lenders and online platforms that can’t see past their situation, while others are put off from applying at all.
“We want to help everyone access their dream home. Even if they have been rejected before, there are specialist lenders and brokers specifically for self-employed and bad credit mortgages who can help.”