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Finite-Alphabet-based blind channel estimation in OFDM systems is known to be extremely complex due to an exhaustive search to be performed over a tremendous number of channel coefficient combinations. In this paper, we present a novel blind channel estimator which dramatically reduces this number of coefficient combinations to be checked without a significant deterioration in estimation quality. Hence, the new low complexity approach enables the application of blind channel estimators based on the finite alphabet set even if the transmitted data are high-rate modulated. Furthermore, we show that the performance of blind channel estimation can be improved by an iterative process based upon the capabilities of channel coding. Using bit error rates, the algorithm is tested with simulations and compared to other blind and nonblind channel estimators.