Over 3 Million Borrowers Refused Credit

Fri, 22 Aug 2008

More than 3 million borrowers have been turned down at least once for a mortgage or loan since the start of 2007, according to new research.

Specialist lender GE Money Home Lending found that nearly half a million loan customers had to apply at least four times in the last 18 months before being able to successfully secure credit .

A further 400,000 consumers were still turned down by lenders despite applying for credit multiple times, reflecting the recent trend of lenders tightening their borrowing criteria as a result of the credit crunch.

Gerry Bell, head of mortgage marketing at GE Money Home Lending, explained: "Multiple failed applications can be time consuming and, of course, can be detrimental to a borrower."

"With criteria changing regularly and the risk of decline increasing all the time, it is even more important that borrowers looking to obtain a mortgage use reputable mortgage professionals with broad experience, knowledge and systems at their disposal which will increase the chances of the borrower getting the deal they need."

He added: "The focus in the mortgage market is now on availability more than anything else, with financially strong and experienced lenders the most likely to offer credit ."

"In addition there are a number of dedicated specialist lenders with strong pedigree who may be able to help meet borrowers’ needs."

Last week, the Council of Mortgage Lenders (CML) disclosed that gross lending for July reached £23.6 million, representing a 32 per cent fall from the same period in 2007.
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