Wednesday 17th October 2007
The number of mortgage applications being rejected by lenders has risen by as much as 60 per cent over the past six months, according to new research from Money Expert.
More than 738,000 home-loan applicants have been turned down since March of this year, compared to 463,000 in the previous six months.
Money Expert put the changes down to more stringent lending conditions, as lenders tighten their belts amid fears of a credit crisis, as well as five interest rate rises since last August pushing up the cost of borrowing.
Younger applicants, those aged between 25 and 34, have been the worst ht by the trend, with some 382,000 young mortgage applicants being refused a loan in the past six months.
Sean Gardner, chief executive of Money Expert, said: "Life is tough at the moment if you're applying for a mortgage.
"The financial environment is far more stringent than in the summer of last year and people need to be prepared for rejection.
"Lenders, quite reasonably, do not want to take risks when there are pressures on how much people can afford, so it's up to the applicant to convince their bank that they can cope with the repayments."
|
Mortgages
While today’s decision by the Bank of England MPC was literally a no brainer it does not help the thousands of home owners who are struggling to make ends meet. As we read another report from the... 
.gif)
.gif)
.gif)
