Residential market research findings from mortgage lender Together suggests that despite indications that house price affordability has improved, there are still significant challenges would-be owners need to contend with.

Together’s Residential Market Survey finds that 53% of the population are currently viewed as ‘non-standard’ applicants by mainstream lenders.

Because of this, 19% have been rejected for a mortgage in the past five years.

Having non-standard income (including multiple and complex incomes or being self-employed) was cited by 22% of those surveyed as a key reason for being rejected for a mortgage.

Having thin or impaired credit (21%) or being over 55 or divorced and considered a non-standard profile (21%) also worked against these applicants.

As did being in a non-standard buying situation (26%), like shared ownership or wanting to buy a non-standard property (12%).

Figure released recently by from Halifax pointed to a typical home in the UK costing 6.7 times average annual earnings of a full-time worker – down from 7.3 times a year ago.

However Together personal finance director Alan Davison insists that it’s not just the earning to house price ratio that matters but also the criteria which affects the borrower’s ability to buy.

“The residential mortgage market is just not built to handle specialist cases, and mainstream lenders can – and often do – reject applications outright if the borrower’s needs don’t meet a set of strictly-defined criteria.

“However, many of these applications are merely viable non-standard cases which could be approved if the mainstream mortgage process were adapted”.

He concludes “There is a critical need for specialist lenders to support the problems faced by borrowers who are categorised as ‘non-standard’ in realising their ambitions to own their own homes this year and in the future.”