The UK is home to an incredibly affluent population; however, our consumers’ fortunes often fail to translate into a healthy credit score, indicating inherent flaws in our current credit assessment criteria that demands a tick box approach to qualify for a loan or mortgage. A clear disconnect is apparent when comparing the UK’s most prosperous regions with the average credit scores in that area. The Barclays Prosperity Index 2015 ranked London and the surrounding South East as the wealthiest regions in the UK, with rising property values attributed as a major contributing factor in a 48% increase of millionaires over the past five years. However, in stark contrast, a 2015 report by ClearScore – which ranked UK regions by their credit score – indicated that the areas with the lowest credit scores in the country were South East London, East London, Southall, North West London, and West Central London, with all five areas scoring below the national average score of 381 out of a possible 700.
The disparity between wealth and credit score indicates that the UK’s wealthiest still face difficulties when trying to secure a mortgage, second mortgage, or loan. In order to discover what extent the UK’s affluent individuals are being inhibited by the traditional credit assessment process, Market Financial Solutions (MFS) has launched a new report – Asset Rich, Credit Poor. The report has sampled over 2,000 UK adults to determine their investment value, whether despite their wealth they have struggled to access credit – either in the form of a loan, an overdraft, or a mortgage – and if they believe the current process has become bound by bureaucracy and red tape.