While researching another issue, found the case of
Hiri v Secretary of State for the Home Department [2014] EWHC 254 (Admin). The Guardian summaries the case
here.
Some quotes from the judgment.
...
25.The Secretary of State is required to make an evaluation of the applicant’s character on the basis of the material before her, having proper regard to the guidance in the Nationality Instructions. The onus is on the Claimant to satisfy the Secretary of State that he is of good character. Although the Secretary of State must exercise her powers reasonably, essentially the test for disqualification is subjective. See Secretary of State for the Home Department v. SK (Sri Lanka) [2012] EWCA Civ 16
26. The Secretary of State’s decision is only reviewable by the courts on traditional public law grounds.
...
35....In my judgment, in deciding whether an applicant for naturalisation meets the requirement that “he is of good character”, for the purposes of the British Nationality Act 1981, the Defendant must consider all aspects of the applicant’s character. The statutory test is not whether applicants have previous criminal convictions – it is much wider in scope than that. In principle, an applicant may be assessed as a person “of good character”, for the purposes of the 1981 Act, even if he has a criminal conviction....
If you apply for reconsideration, you could quote the judgment above and point out that you have no other criminal convictions and offer to provide more referees to vouch for your good character.
I am not a lawyer or immigration advisor. My statements/comments do not constitute legal advice. E&OE. Please do not PM me for advice.