Wednesday, Apr 15, 2009
Massive increase in mortgage application rejections
The Telegraph: Mortgage rejections increase fourfold
Nearly 9pc of vetted mortgage applications are being rejected this year compared to just 2.3pc in 2007, according to moneysupermarket.com. The website said that all the applications were qualified against the lender's criteria prior to submission and on paper appeared to fit. However, lenders still found reasons to reject them. Louise Cuming, head of mortgages at moneysupermarket.com, said: "Lending criteria has become too strict – even vetted applications that we would expect to be accepted without a hitch are being rejected."
Posted by wanderinman @ 11:24 PM (444 views) Add Comment
3 Comments
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1. Doghouse said...
Thanks wanderinman, I needed a bit of bear food after all the ramping over the past few days. I was beginning to feel quite queasy!!
No, lending criteria hasn't become too strict....it's called SENSIBLE lending, and long may it continue. Just hope the banks don't revert to idiotic 100% + mortgages and ridiculous income multiples once their balance sheets are healthier - if we appear to need such products, then house prices are too high. I can live with 4x max salary, just so long as it is 4 times highest salary and not joint - that way we can all afford to buy a home without entering into slavery until our dottage!!!
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3. it_is_going_with_a_bang said...
Vetted applications? On paper appeared to fit?
Bah, by whom? A slip of paper saying what they earn and a quick credit check?
Not enough and never was. I would take a guess and say people are being found out to be little liars a little more frequently now.
I hope one thing comes out of this and that is an end to liar loans.