Over two fifths (44%) of traditionally underserved customers by high street lenders are being turned down for financial products and services, with a quarter of those being rejected for a mortgage, new research by Bluestone Mortgages reveals.

Research, which was undertaken by Opinium and surveyed 1,003 UK adults, showed that 33% have been turned down for credit cards, 23% for mortgages and 12% for loans. 

Most likely to be turned down for a financial product or service are those who have missed a payment that has impacted their credit score, compared to 28% for the self-employed. 

Bluestone’s research also found that younger would-be borrowers are more likely to be turned away by lenders. 

More than three quarters (77%) of those aged between 18 and 34 have experienced being turned down, compared to 55% for those aged between 35 and 44 and 13% for those aged 55 and above.

Non-vanilla customers who were turned down for a mortgage application were most likely to be rejected by high street banks (84%), followed by their main bank (23%). 

However, 88% of the lenders then provided further advice on how to secure a mortgage.

The most popular advice was to recommend a different lender (82%), with 13% recommending a mortgage broker. After the recommendation, 98% were able to secure a mortgage.

Bluestone Mortgages chief executive Steve Seal comments: “It’s discouraging to see just how many people are being turned down for financial products and services. In an environment where inflationary pressures continue to mount and the cost of living is rising, the number of customers who do not fit the ‘vanilla’ profile is only set to grow.”