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 borrowing of both homebuyers and those looking to remortgage.
“With so many applications being rejected it’s unlikely that only first-time buyers are being affected. Anyone looking to remortgage should apply with caution and take professional advice if they’re unsure – too many failed applications could affect your credit rating,” he says.
Young houme buyers, aged between 25 and 34, were the most likely to be refused an applications. According to MoneyExpert.com, around 4% of all people in the age bracket has had application turned down, equivalent to 382,000 people.
Gardner says it is important to speak to an adviser when looking to remortgage to ensure applicants apply for the products they are most likely to be accepted for.
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