Mortgage and loan customers 'rejected four times'

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Mortgage and loan customers 'rejected four times'

Thu 21st Aug 2008

As many as 450,000 applicants for mortgages and loans needed to apply four or more times to be accepted in the last 18 months, according to new research.

GE Money Home Lending found that more than 412,000 people could not get a loan or mortgage despite trying repeatedly.

Gerry Bell, head of mortgage marketing at the company, said borrowers needed to use brokers to secure a deal as criteria constantly change.

As lenders tighten their criteria, the loan company said, previously creditworthy people are potentially rated as higher credit risk and therefore less able to secure a deal.

The Council of Mortgage Lenders recently reported "subdued" lending in the month of July.

Head of research Bob Pannell noted a small month-on-month increase in activity, but said there was still a "notable decline" from the same time in 2007.

He said it continued the "weaker picture seen in June" and predicted the trend to continue for the rest of the year.

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