16-10-2007
Mortgage application rejections on increase
The number of mortgage application rejections is increasing, it has been claimed.
According to data released by MoneyExpert.com, over the last six months, the number of mortgage application rejections has increased at a rate of 60 per cent to over 738,000.
Over the previous six-month period to March 2007, the number of mortgage application rejections was lower at a rate of approximately 463,000.
"Life is tough at the moment if you're applying for a mortgage," said Sean Gardner, chief executive of MoneyExpert.com.
"The financial environment is far more stringent than in the summer of last year and people need to be prepared for rejection," he added.
The increase in the number of mortgage application rejections is believed to be the result of a stricter interpretation of lending criteria by banks and building societies.
In related news, it is thought to be increasingly less likely that the Bank of England will choose to lower interest rates from their current level of 5.75 per cent, according to reports by Reuters.