New online mortgage broker platform Haysto draws attention to issues of anxiety and depression in rejected mortgage applicants, according to the results of their latest research.
As mortgage application rejections increase in the UK, there is growing awareness of how the process can adversely affect the mental health of applicants. The survey by specialist mortgage broker Haysto found that 31% of those who experienced rejection after applying for a new mortgage were left feeling depressed.
Although 21% reported the process had negatively affected their mental health long-term, 51% were left feeling insignificant, unfairly treated and with a sense of grievance as a result.
The research also revealed that 35% of respondents who felt they could not acquire a good mortgage deal were disinclined to suffer the stress of reapplying or were unlikely to apply at all for fear of rejection.
Of greater concern, 91% were wrongly under the impression that taking a Covid-19 mortgage payment holiday could affect their credit score negatively. This is despite the Financial Conduct Authority (FCA) and lenders stating that credit reports would not be affected.
Specialist mortgage brokers for self-employed
Haysto commissioned the research because the company believes the mortgage world is inaccessible to those who don’t fit the stereotype of the traditional applicant. Consequently, they wish to address people’s fear of the mortgage application process and correct the mistaken belief of some that due to their circumstances, they will never be given a mortgage.
In fact, over 50% of mortgages for the self-employed or those with poor credit scores are not directly available from lenders and can only be accessed through specialist brokers.
Haysto works to raise awareness that those in complex situations could still qualify for a mortgage, even if previously rejected, and that the process would be more user-friendly and less of an ordeal than they assume. More than half of Haysto’s customers have already been rejected for a mortgage elsewhere.
The company was launched recently to cater for those who feel they are unlikely to succeed in obtaining a mortgage, or perhaps have been told previously that they would not be eligible for one. The broker specialises in complex mortgages that are not run of the mill and customers who are self-employed or have poor credit scores.
The firm also seeks to reduce the psychological impact of rejection and, to this end, has pledged that for every mortgage completed, they will donate a percentage of their profits to the mental health charity Mind, in order to continue supporting people with financial worries.
Use of personalised profiles
The company doesn’t employ the automated decision making used by online mortgage brokers and traditional lenders to determine eligibility, a method which is inappropriate to complex situations.
Haysto treats every customer instead as an individual with unique requirements, creating in the process a profile with which to seek out specialist mortgages often not directly available to them.
The platform then matches each customer to a broker with the expertise to advise on the right mortgage. Customers can track their application online and speak to their broker at any time to receive expert advice.
Paul Coss, co-founder and experienced mortgage broker, is disappointed that the mortgage process is still ill-informed and misunderstood, as these barriers impact negatively on mental health.
As a result of Covid-19, he says, self-employment and poor credit histories are increasing in the UK, hence a growing number of people applying for mortgages just don’t fit the stereotype. Many are rejected by online platforms and traditional lenders that apply rigid criteria, while others are discouraged from applying, full stop.
Mr Coss is proud that in not using automation his platform offers the market’s most customised mortgage experience by matching applicants to specialist brokers according to their unique circumstances. He aims to help people achieve their dream home.
Even if they have been rejected previously, he says, there are lenders and brokers specialising in mortgages for the self-employed and those with poor credit scores who can help.