Middle-class borrowers face new mortgage crackdown

The Sunday Telegraph looks at how middle-class borrowers face a new mortgage crackdown as lenders tighten their criteria and the cost of living crisis hammers credit scores. Analysis shows the number of middle-class borrowers - those with household incomes between £70,000 and £150,000 - with adverse credit searching for a mortgage has increased by two thirds since 2019. A survey by the lender of 7,000 adults found that more than a quarter of middle-class borrowers had been rejected for a mortgage in the past year because of a thin or impaired credit history. Each bank and building society has its own affordability benchmark that dictates how much it is willing to lend and the criteria borrowers must meet to secure a mortgage. Matthew Jackson of the mortgage broker Mint Financial Services said a growing number of applicants were being rejected as a result, especially when lenders used automated underwriting. He said: "This issue has been particularly rife among newly qualified professionals, who may have a great salary but not necessarily the bigger deposit to buy in cities or a particularly large credit file." 

The Sunday Telegraph (11/12/2022)