A significant number of mortgage applicants are being turned away unnecessarily and not directed to specialist lenders who could help them secure a home, according to new research from Shawbrook.
The lender’s latest Home A-Loan report highlights widespread gaps in the UK mortgage system, particularly when it comes to serving borrowers with complex financial backgrounds. The study found that over a third (34%) of applicants who were declined for a mortgage were never referred to a specialist lender—despite many fitting the criteria.
The most common reasons for mortgage rejections included:
Volatile income (26%)
Poor credit score (25%)
Missed payments (21%)
Affordability concerns (21%)
These are precisely the kinds of scenarios that specialist lenders are designed to handle—especially for groups like the self-employed, freelancers, contractors, or those with minor credit issues.
Yet, awareness of these alternative solutions remains worryingly low. Only 25% of consumers said they understand what a specialist lender is or how to access one. Nearly half (46%) had heard the term but didn’t know what it meant—highlighting a serious lack of education and signposting within the industry.
The report also underscores the value of using a mortgage broker:
97% of those who worked with a broker were matched with the right lender
97% appreciated their broker’s market expertise
95% said brokers made the process easier
Despite these benefits, just 22% of applicants had used a broker—indicating a major missed opportunity for many buyers navigating an increasingly complex mortgage landscape.
Shawbrook’s findings point to an urgent need for better education, improved referral pathways, and more proactive support from mainstream lenders and advisers to ensure would-be homeowners are not left behind simply because they don’t fit the mould of a traditional borrower.
Steve Griffiths, commercial director for retail mortgages at Shawbrook, commented: “There is a concerning lack of support for those with unconventional profiles, whether this is due to their employment type or credit history – and this can often stop people’s homeownership goals in their tracks, without any explanation or advice for next steps. Specialist lending is a solution to this dead-end, but it continues to be something that only a minority of borrowers understand, or are even aware of.
“Everyone deserves an equal footing on the property ladder, especially as the market and economy continues to change, and there isn’t a cookie-cutter image of the perfect borrower. Too many people think a ‘no’ from one lender means the end of the road. In reality, there may be a perfectly viable solution – but the industry needs to do a better job of helping people find it.”
Read the orginal article: https://propertyindustryeye.com/no-help-no-home-a-third-of-buyers-rejected-without-referral/
