Fourfold increase in rejected mortgages

Posted: 16 Apr 2009 12:59:13 GMT

The number of mortgages rejected despite the borrower fitting the lender's criteria has increased almost four times, research has found.

Figures published by consumer website moneysupermarket.com show that in 2007 the rate of such mortgage applications being rejected was 2.3 per cent.

In 2009, however, the website reported that that number has now reached 8.8 per cent.

With recent research from the Royal Institute of Chartered Surveyors claiming that house prices falls have begun to attract buyer interest, the rise in mortgage rejections may concern homeowners trying to sell a property.

Homeowners hoping for a quick sale may then wish to advertise their property online, to try to attract a greater number of potential buyers.

Louise Cuming, head of mortgages at moneysupermarket.com, advised that potential buyers should clear up their credit history if they are concerned about mortgage rejections.

She said: "Credit histories play an important part in the process and any blemishes will make finding a mortgage increasingly difficult.

"Details of all missed repayments are held on your personal files for six years and may count against you when your credit rating is accessed."


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