Banks Increasingly Rejecting Application
Saturday, March 21, 2009 16:47
Last month, despite government pledges to get the market moving again, the mortgage lending fell by 15% to only £10 billion, hitting the lowest level for eight years.
According to brokers, the banks and building societies are increasingly rejecting applications even for those with big deposits or good credit ratings. Every day, the lenders seem to dream up a new reason to reject application by ‘good’ borrowers who have perfect credit ratings and deposits in excess of 40%.
Financial Services Authority said last week that it would consider capping mortgages where customers borrow a big multiple of their income or proportion of the property value. But, brokers claim that lenders are already imposing limits, and the pendulum has swung “too far the other way”.
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