As lending conditions have tightened, over 738,000 mortgage applicants have had their mortgages rejected, research from internet financial site MoneyExpert.com has revealed.
Their findings showed that, since March, the number of mortgage applications that were rejected has risen by 60% – from 463,000 in the six months up to March, to 738,000 from March to October 2007.
The most affected were aged between 25 and 34, with almost 4 per cent in this age bracket having had their mortgage refused.
Sean Gardner, Chief Executive of MoneyExpert.com, 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.
“Anyone looking to re-mortgage should apply with caution and take professional advice if they’re unsure – too many failed applications could affect your credit rating.
“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. “
Chiltern’s Joanne Gill says: “Banks and building societies are enforcing their stricter lending policies at the moment as they don’t want to take unnecessary risks in the current climate.
“If people are considering re-mortgaging to pay off debts, it might be a better option to consider alternatives, such as an informal debt management plan where they can repay their debts to a more affordable level, until the situation changes.”
