Can't get a mortgage?

Thursday, November 1, 2007

People are finding it harder to get a mortgage in the current economic climate. The 'credit crunch' has seen the number of mortgage and remortgage applications rejected by lenders, rise by 60%.

More than 738,000 applicants have been turned down by lenders in the past 6 months as stricter lending criteria is applied.

Many of these rejections have been to first time buyers who are usually classified as applicants between the age of 25 and 34. This has mean't first time buyers are disappearing at an alarming rate. The financial environment is much tougher and people will have to get used to this sort of rejection.

You must proceed with caution if you are being affected in this way as to many failed applications can affect your credit history.

The reason for these rejections other than the squeeze on credit liquidity, is that lenders do not want to take risks when there is pressure on how much people can afford.

Lenders have been acting independently of the Bank of England in terms of pricing their rates.

If you have been turned down for a mortgage or remortgage recently due to your credit history you could speak to Solution Mortgages on 0845 123 1260 or apply on-line at www.solution-mortgages.co.uk