Lendinvest Survey Finds That Getting A Mortgage Is More Difficult Than Planning A Wedding

A Lendinvest survey involving 1,000 UK participants, primarily self-employed individuals and those with complex income streams, discovered that 30% had experienced mortgage rejection, compared to 14% in the general population.

Among the respondents, 35% felt there were insufficient mortgage products catering to their situations, and 48% claimed the mortgage application process negatively impacted them.

The survey unveiled that 51% altered their life choices to increase their chances of application success, and 43% considered the cost of living crisis a barrier to homeownership.

Results indicate that obtaining a mortgage is perceived as more challenging than moving home (19%), planning a wedding (14%), parenting (13%), and applying for a new job (11%) among self-employed individuals and those with multiple or non-traditional income sources or complex credit histories. A quarter of respondents ranked acquiring a mortgage as the most difficult task, with only flying a plane (49%) ranked as more difficult.

Lendinvest reports that over a quarter of self-employed workers struggle with obtaining a quick mortgage decision.

Furthermore, 20% of respondents found it challenging to locate someone who understood their situation, and 29% felt discriminated against by high-street mortgage lenders or banks due to their employment status or income streams.

Lendinvest CEO Rod Lockhart believes these findings highlight the challenges faced by those with more complex cases when applying for a mortgage and the general sentiment regarding the mortgage process during a difficult period for potential homeowners. He expressed concern over the significant emotional toll experienced by a worryingly large number of people.

Ian Angus-Felton, Senior Mortgage & Insurance Broker and Technical Manager at Greenshoots Financial said, “A seasoned independent Mortgage Broker will come across self-employed and people with complex scenarios on a frequent basis and will know exactly which Lenders will accommodate the unique needs of their clients. Yes, a Broker's job is to find their clients the most appropriate mortgage, but just as importantly, it’s to take away the stress, anxiety and emotional toil this survey suggests is prevalent among clients”.

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