One in three feel depressed following mortgage rejection, according to new study

One in three people who are turned down for a mortgage say they are left feeling depressed, according to a new study.

Research from Haysto, an online platform which specialises in mortgages for the self-employed and people with bad credit, also found that more than half of those rejected felt marginalised as a result of the process.

A further one-fifth of people said it left a long-term negative impact on their mental health.

Haysto is working to raise awareness among borrowers in complex situations that they could still qualify for a mortgage, even if previously rejected.

The company is also keen to address the psychological effect of being rejected for a mortgage and has pledged to donate a percentage of their profits to Mind, the mental health charity, to support those struggling with financial worries.

Paul Cross, co-founder of Haysto 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.”