Crunch fuels spike in credit applications

Lenders are rejecting loan and mortgage applications in greater numbers, as the credit crunch continues to make conditions difficult for borrowers.

New research conducted by GE Money Home Lending found that over the last 18 months one in 20 Britons has been turned down for either a personal loan or mortgage.

Of these some 13 per cent said that they applied four times or more before they were advanced the money, while a further one per cent of the sample had to submit eight or more applications.

Gerry Bell, head of mortgage marketing at GE Money Home Lending, said: "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."

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