The ‘Asset Rich, Credit Poor’ report surveyed over 2,000 UK adults which found that 17% of high-net-worth individuals had been unable to secure a credit card, bank loan, an overdraft or commercial loan in a timely manner.

MFS also reported that over a third of Londoners had been unable to secure credit in the past five years with 42% feeling that the current process to acquire credit from banks was too restricted by red tape and bureaucracy.

Despite the struggles Londoners were facing, 59% said that they  did not know enough about alternative finance to consider it as a funding option.

MFS stated that just under a third of 18 to 34 year olds had struggled to acquire some form of credit from a bank with 40% dissatisfied with the bureaucratic measures impeding their investment aspirations.

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The lender’s research highlighted that general consumer awareness of alternative finance was very low with only 10% relying on it as part of their investment strategy and 55% saying they did not feel informed about alternative finance options.

 “Whether you’re a high-net-worth individual or a prospective property buyer, there is a clear problem for British consumers and investors attempting to access traditional lines of credit,” said Parash Raja, CEO of MFS.

“Londoners are clearly struggling, and this is concerning when you consider that the price for London property is continuing to rise.

“The current processes adopted by the UK high street’s big-name lenders are clearly restricted in their effectiveness due to excessive red tape that is putting property purchases at risk, and inhibiting borrowers from fulfilling their intentions, both in business and in their personal lives.”