An innovative new online mortgage company is campaigning for banks to offer better support to their customers after refusing them a mortgage.

Specialist mortgage platform Haysto recently unveiled its new ‘Thanks For Nothing’ initiative, which aims to raise more awareness of the specialist lending market among would-be homeowners.

Haysto launched to make mortgages possible for those with the odds stacked against them or who have been told they can't get one.

It specialises in bad credit, self-employed and complex mortgages, matching customers to a specialist mortgage broker based on their unique situation.

It then gives customers real-time visibility on specialist mortgage products, and 24/7 access to see how their mortgage application is progressing.

You could be eligible

More than half of Haysto’s customers have been rejected for a mortgage elsewhere - either by their high street bank or mortgage brokers.

Worry over bad credit is a huge hurdle when it comes to mortgage applications, with 70% of people fearing they won’t be able to buy a home because of their credit score.

Buyer profiles are changing. According to a survey of 1,000 consumers who were previously rejected by the high street, most were refused as a direct result of a low credit score (68%), adverse credit (28%), irregular income streams (22%) or CCJs (19%). A substantial minority (11%) said it was due to multiple income streams.

But those in complex situations, such as having a bad credit history, could still qualify for a mortgage, even if they’ve been previously rejected.

So unknowingly, many people who are actually eligible for a mortgage are trapped paying high rents unnecessarily.

No more 'computer says no'

Worry over bad credit is a huge hurdle when it comes to mortgage applications

According to research, 45% of people who are refused a mortgage by their bank said being rejected made them feel less inclined to reapply for a mortgage. This means they won't seek the advice of a specialist mortgage broker who could help them.

Haysto co-founder Paul Coss said: “Some banks and mortgage brokers will make you feel like a bad person when they refuse to give you a mortgage.

"Automated online mortgage advisors won’t judge for themselves. It’s simply a case of 'bad credit means computer says no’.

“But even if you have bad credit, you can still get a mortgage. You’ll just have different options open to you than if you had a perfect credit score.”

Tackling the stigma

That's why Haysto is working so hard to tackle the stigma around bad credit and help those who’ve been refused and unsupported by the high street banks.

It recognises there are all sorts of reasons people miss monthly payments and find themselves labelled as ‘bad credit’.

The pandemic has thrown numerous curveballs into the mix - from furlough to redundancy - with many people taking home less money and perhaps missing monthly payments.

This doesn’t mean they aren’t trustworthy and should be penalised for years to come.

'Thank heavens for Haysto'

Angela and Tony found a mortgage with Haysto

This is what happened to Angela and Tony. After finding their dream home, they managed to sell their current house and approached their bank of over 20 years to sort a home movers mortgage.

Like so many people, they’d previously found themselves in a bit of financial difficulty and had some late payments from several years ago on their credit file.

Since that time, they’d worked hard to get back on their feet and were looking forward to a fresh start in their new home.

However, their bank refused them a new mortgage because of the historic blips on their credit report.

With four children to worry about, Angela and Tony were at a loss for what to do. They were stressed and worried about potentially losing the sale of their home AND their dream home.

Luckily they found Haysto, which matched them with a specialist mortgage broker with a track record of helping people just like them. Their broker found them a mortgage with specialist lender Bluestone.

Bluestone looked at the ‘big picture’ and understood that life gets in the way, and was confident that the couple could happily afford a new mortgage.

Speaking about their experience, Angela said: “Banks just don’t provide the service these days - a slight blip in your credit file and they’re unwilling to help.

"Thank heavens there are companies like Haysto around that actually listen, rather than just punch into a computer.”

Personalised experience

Over half of Haysto’s customers have been rejected for a mortgage elsewhere

Over a third of mortgage brokers surveyed (37%) say that in the majority of cases where they refer a client to a specialist lender, it’s because they’ve been previously rejected by the high street – up from 29% in the previous year.

Yet awareness of specialist lenders remains low, due to the fact they’re usually only accessible through specialist mortgage brokers. They don’t tend to come up in online searches, and banks won’t tell their customers about them.

Haysto’s unique platform matches customers who don’t fit the traditional mortgage mould with a specialist mortgage broker who can find them a mortgage with one of these lenders.

Their application will then be assessed on a case-by-case basis, where their unique situation is taken into account.

Many specialist lenders don’t do credit scoring, as the score alone doesn’t always provide an accurate picture of someone’s financial situation.

They use human underwriters rather than automated decision making to assess an individual’s application.

Using common sense

Borrowers’ needs are changing in the wake of the pandemic, and with fewer cases being straightforward, being able to use common sense and understand the nuances of someone’s situation is essential to getting deserving people onto the property ladder.

Finding a specialist lender for bad credit has never been easier. Haysto’s initial enquiry process takes two minutes and doesn’t impact your credit score.

It’ll match you with a specialist broker who can find you the right mortgage with the right lender.

Please remember, getting a mortgage is a very important financial decision and there are circumstances where a mortgage may not be right for you. It is advised that you should always seek independent financial advice.

Find out more?

Haysto is the first online mortgage platform specifically for the self-employed and those with a bad credit rating. For more information, see the Haysto website.