Millions of borrowers dissapointed

GE Money Home Lending, the parent company of mortgage and loan brands First National and IGroup, has released statistics which claim that up to 3.5 million borrowers have had a mortgage or loan application declined at least once in the last eighteen months. They also discovered that up to 450,000 applicants had to make four or more applications before being accepted, and more than 412,000 were unable to secure finance, regardless of the number of applications made.

Gerry Bell, head of mortgage marketing, at GE Money Home Lending, says: “Multiple failed applications can be time consuming and, of course, can be detrimental to a borrower.

"With criteria changing regularly and the risk of decline increasing all the time, it is even more important that borrowers looking to obtain a mortgage use reputable mortgage professionals with broad experience, knowledge and systems at their disposal which will increase the chances of the borrower getting the deal they need.”

The reasearch, which is based on data from 2007 and the first six months of 2008, claims that the reason for the vast majority of failed applications is the credit crunch. Of those that were declined on the first application, 13% went on to make four applications with around 30,000 making eight or more applications. Around 30% of applicants gave up once rejected, and around 12% were not accepted by any lender, despite repeated applications.

Bell adds: “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. In addition there are a number of dedicated specialist lenders with strong pedigree who may be able to help meet borrowers needs."

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