Mortgage rejections up 60% during credit crunch

clock

Rejected mortgage applications rose 60% in the last six months as a result of strict lending criteria since the beginning of the credit crunch, according to MoneyExpert.com.

The research claims younger mortgage applicants, aged between 25 and 34, are the worst affected by tightening lending criteria. In the six months to October, a total of 738,000 mortgage applications were refused, considerably higher than the six months to March 2007, which saw just 463,000 applications rejected. MoneyExpert.com says recent interest rate rises and tough lending criteria, partly due to the US sub-prime crisis, are the main reasons for the huge increase in rejected applications. Sean Gardner, chief executive of MoneyExpert.com, says the market climate is affecting the borro...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Mortgages

Client conundrum: Mortgage overpayments versus investments

Client conundrum: Mortgage overpayments versus investments

1.4 million people will see mortgage deals end this year

Laura Suter
clock 22 February 2023 • 3 min read

Summer economic update: Sunak confirms stamp duty holiday in 'mini-Budget'

Mini Budget

Hannah Godfrey
clock 08 July 2020 • 2 min read

FCA sounds alarm on equity release advice

'Tick-box exercise'

Hannah Godfrey
clock 17 June 2020 • 1 min read