Mortgage rejections on the up

News Category: Industry News

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The number of mortgage applications being rejected has risen by 60 per cent since March, with 738,000 applications being rejected in the last six months, new research from MoneyExpert.com has revealed.

The financial comparison site found that interest rate rises, tougher lending conditions and the shrinking pool of available properties had all made it harder for people to secure a mortgage, with a number of first-time-buyers in particular looking to continue renting and hold off from purchasing property until prices begin to fall.

The research also revealed that applicants aged between 25 and 34 were the most likely to have suffered a rejection, with this age group accounting for 382,000 rejected applications.

"Life is tough at the moment if you're applying for a mortgage," said MoneyExpert.com chief executive, Sean Gardner. "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."

Landlords have not suffered from the same problem, with official statistics revealing that the market for buy-to-let and other non-residential mortgage lending has increased by 37 per cent in the last year.

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