Its research reveals that the self-employed and those with irregular incomes suffer most.

According to the poll of 752 people who had applied for a mortgage within the past five years, 32% have faced at least one rejection from a lender, while 68% were successful at their first attempt. 

Of those who had faced a knock-back, 44% were rejected due to having an irregular income rather than a monthly pay-check.

Three in 10 of those who had been rejected were self-employed

Furthermore, a third of borrowers who had been declined at least once already owned another mortgaged property at the time.

Half of the respondents had used a mortgage broker.

Almost six out of 10 felt lenders should be more flexible in assessing applications and take account of an individual’s full financial circumstances. 

Meanwhile, 28% are dissatisfied with the experience they have had with their current lender.

More than a third (36%) of those who were turned down by a lender said that they were never told why their application had been unsuccessful. Almost half (46%) had received an agreement in principle from a mortgage provider, only for the company to later reverse their decision.

 KSEYE head of underwriting Kynan Benjamin says: “Given how busy and competitive the UK property market has been over the past 12 months, the mortgage industry has come under scrutiny. 

“And understandably so, with our research highlighting just how difficult it can be for individuals to jump through the necessary hoops to secure a mortgage. 

“Clearly, the inflexible application process that many lenders rely on is precluding some people from getting onto or moving up the property ladder. The self-employed, those working in the gig economy, and people with irregular sources of income are suffering the most.

“So, it is of little surprise that the specialist finance sector has seen an increase in applications in 2021. 

“Those keen to purchase a property, particularly during the stamp duty holiday, have had to consider their options – for some, as the data shows, mortgages are not always viable, and so greater flexibility or a more bespoke option is required.”