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Rejection of first time buyer mortgages keeps rental sector buoyant

New data suggesting that only a third of first time buyers are able to secure a mortgage at their first attempt may indirectly explain why demand in the rental sector remains so strong.

Data from a study conducted by the Aldermore Bank shows that just 35 per cent of FTBs were able to get a mortgage on the first attempt, considerably down from the 49 per cent before the pandemic. 

Over a quarter of prospective first time buyers are worried about their credit history and a third are currently actively looking to improve their score.


Some 49 per cent of FTBs have experienced disruption to their employment, such as furlough or redundancy, since the pandemic began, and two in three are worried about their current financial situation.

Aldermore bank’s First Time Buyer Index - a survey of 2,015 prospective first time buyers - reveals many are struggling to secure a mortgage as conditions created by Covid-19 continue to bite. 

Jon Cooper, head of mortgage distribution at Aldermore, says: “It’s easy to see from the research why many first time buyers can feel disheartened by the challenges when looking for their first home.

“I would also recommend getting help from a broker, which can be a great boost in navigating the many pitfalls and confusing processes. They provide a whole of market view and cut through the jargon to provide options specific to a new buyers’ individual circumstances.”


Reason for mortgage application getting rejected


Poor credit history


An administrative error


I didn’t have a large enough deposit


I’d taken out a payday loan


I was self-employed, have irregular income or a contract worker


I haven’t always lived in the UK


I had a large amount of debt


I’d made too many credit applications


Me/my partner was not on the electoral roll


Me/ my partner were not earning enough


Credit issues


Used my overdraft


Had a student loan


Missed bill payments


Had a gap in employment


Been responsible for dependents (e.g. children)


Been in credit card debt


I have had gambling transactions on my history


Taken out a payday loan


Any account handled by collection agencies


Had a County Court Judgement (CCJ)


Been declared bankrupt


Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    First mortgage I applied for, 1978, was the old Abbey National, didn't get past the young girl on the counter, every thing was negative, they just didn't want to know, so I drew all my money out there and then, went to see the bank manager at Barclays and had a first class letter next morning offering me the loan, it's always been difficult getting that first loan, probability even more so now as most young people live their lives on credit

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    Dear Landlords

    Please continue to risk your life savings renting to those whom the big banks won't touch- but don't expect any help or thanks from anyone!

    Theodor Cable

    It is the responsibility of Local Authorities to take care of people who are known thieves, rent defaulters and house trashers.

    I will never go anywhere near them no matter how much Councils try begging..

    Theodor Cable

    Quite right......Let Councils house these people.

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    Quite right Andrew, that was in the days when banks had managers and you could book an
    appointment and go and see them. They had the authority to make a decision based on their conversation with you, not that all the boxes on a questionaire were ticked!
    My cousin was a senior bank manager and he told me that his cashiers then had more discretion than a current bank manager today.

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    Computer says 'No!'

    Many people have no idea that defaulting on a loan payment or missing a payment on your phone bill can affect your credit rating or any idea how to improve it. My kids got credit cards as soon as they were 18, went on the electoral roll & paid all their bills to ensure a good credit rating when needed.


    I did the same but one son was initially refused his first mortgage because of a dispute with an online music store who disputed he had returned under £20 of CD's. It took weeks to sort out whilst the entry date loomed nearer.

    They now track all 3 credit agencies' monthly reports meticulously to avoid any future such issues. A lesson well learnt!

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    When I had savings in 1971 and tried to buy I was turned down they expected you to be married. Also got turned when a friend & I tried to buy one between us. It was the biggest favour they could ever have done for me, avoiding that noose around my neck for 25 years. Subsequently I bought the land in Ealing to build one, went to the Bank with the Deeds as collateral and they gave me money to Build, the interest rate was high at 13% but part of the deal was I wouldn’t make any re-payments in year one obviously I couldn’t. That time your Deeds just went in the Bank safe until you redeemed them. Anyway I have told you before that I personally built the house which I still have, now I am expected to do courses and collect DCP or a mark against me. I must learn how to do it, but I could do it with computer to comply only problem is I am not capable of use those things, obviously far more important than Building a House


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