3m borrowers rejected

Over three million borrowers have been turned down at least once for a mortgage in the past 18 months, new research has found.

GE Money Home Lending, the specialist lender, revealed that nearly half a million loan customers had to apply at least four times before successfully securing credit in the same period.

A further 400,000 consumers were not accepted by any lender despite applying for credit multiple times, reflecting the recent trend of lenders tightening their borrowing criteria.

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, said Gerry Bell head of mortgage marketing for GE.

"In addition there are a number of dedicated specialist lenders with strong pedigree who may be able to help meet borrower's needs," he added.

Last week, the CML disclosed that gross lending for July was 23.6 million, which is a fall of 32 per cent from the same time last year.

Mortgages News posted on 21/08/2008 14:49:05