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PalmerEldritch

Mortgage Refusals Go Through The Roof

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I guess in one year's time, those who were rejected will count themselves lucky.

Maybe there's been a real spike in rejections over the past 2 months,April , May, June probaby weren't so bad.

Edited by council dweller

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http://news.sky.com/skynews/article/0,,30400-1288417,00.html

Some decent news on an otherwise depressing Monday morning.

Fantastic story.

The number of people having their mortgage applications turned down has jumped by some 60% in the past six months.

Or 60% of all people applying for mortgages in recent years should have been turned down..... Or, over the passed few years, 738,000 people every 6 months have been granted a mortgage when the would have been refused one today.

Stable door, Bolted, Horse. <_<

Craaaaaaaash tastic.

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I don't think that I can be reading this correctly.

"The research showed that of the 738,000 people who had mortgage applications rejected in the six months to the beginning of October, applicants aged between 25 and 34 were worst affected.

Around 4% of people in this age bracket have had an application turned down - around 382,000 young mortgage applicants."

Have there really been over nine-million mortgage applications from 25 to 34 year olds in the past six months? :blink:

Adding in those outside that range, who were less likely to be refused, it seems that virtually every OO has mortgaged or remortgaged in the past six months!

Otherwise, many applicants must be being told "You didn't qualify for one of our mortgages this morning. It is now 3p.m. and you still don't. See you first thing tommorrow."

p-o-p

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Around 4% of people in this age bracket have had an application turned down - around 382,000 young mortgage applicants."

Have there really been over nine-million mortgage applications from 25 to 34 year olds in the past six months? :blink:

It must mean 4% of all people in that age range, regardless of whether they'd applied for a mortgage or not.

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Oh, rock and hard place if you're coming off a fixed low rate deal and hunting around for another good deal and getting told, sorry you're too chavy for us. That puts you straight onto the SVR, which is more or less by definition not a good rate to be on. I see a repo spike on the horizon. :blink:

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I don't think that I can be reading this correctly.

"The research showed that of the 738,000 people who had mortgage applications rejected in the six months to the beginning of October, applicants aged between 25 and 34 were worst affected.

Around 4% of people in this age bracket have had an application turned down - around 382,000 young mortgage applicants."

Have there really been over nine-million mortgage applications from 25 to 34 year olds in the past six months? :blink:

Adding in those outside that range, who were less likely to be refused, it seems that virtually every OO has mortgaged or remortgaged in the past six months!

Otherwise, many applicants must be being told "You didn't qualify for one of our mortgages this morning. It is now 3p.m. and you still don't. See you first thing tommorrow."

p-o-p

If a large percentage of 25 to 34 year olds are first buyers but they can't get mortgages and BTLer's can't get mortgages due to stricter lending policies etc then who will be getting onto the bottom rung of the housing ladder?

Did somebody just say House Price Crash?

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Oh, rock and hard place if you're coming off a fixed low rate deal and hunting around for another good deal and getting told, sorry you're too chavy for us. That puts you straight onto the SVR, which is more or less by definition not a good rate to be on. I see a repo spike on the horizon. :blink:

Those repossessed may not be the biggest losers. They may have time to recover.

Spending the rest of the life of a mortgage in negative equity, on SVR with no repayment vehicle could screw you for life.

I don't think that the banks will be too keen on having all that property on their hands. They will try any trick to keep people in 'their' homes and a lifetime of servitude!

p-o-p

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OK, I guess, it depends what exactly a mortgage refusal is.

Does this figure include re-mortgage?

Does this survey count multiple times the deluded who need to be declined by every lender?

How does a year-on-year 60% increase in refusals compare with long term averages?

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OK, I guess, it depends what exactly a mortgage refusal is.

Does this figure include re-mortgage?

Does this survey count multiple times the deluded who need to be declined by every lender?

How does a year-on-year 60% increase in refusals compare with long term averages?

Answers: yes, yes and a 60% drop in mortgages in such a short space is pretty unheard of and a sign that the credit crunch is now here.

The affect on house prices.... well, it's not good.

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Answers: yes, yes and a 60% drop in mortgages in such a short space is pretty unheard of and a sign that the credit crunch is now here.

Erm, it isn't a 60% drop in mortgages - just a 60% increase in refusals.

This could, in principle, be explained by something as simple as British looking for NINJA (No Income No Job or Assets) loans have become more aggressive in pursuing lenders to issue mortgages. If this were the case, and only candidates who would always have been rejected are now rejected, then this would have zero impact on the market for houses.

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It would be a more enlightening statistic if the approvals were included also. Having said that, the numbers are huge so a lot of people must be finding it impossible to buy or remortgage at attractive rates.

Sales volumes will drop off and then there is the wait for reality.

p-o-p

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I don't think that I can be reading this correctly.

"The research showed that of the 738,000 people who had mortgage applications rejected in the six months to the beginning of October, applicants aged between 25 and 34 were worst affected.

Around 4% of people in this age bracket have had an application turned down - around 382,000 young mortgage applicants."

Have there really been over nine-million mortgage applications from 25 to 34 year olds in the past six months? :blink:

Also remember that if you get turned down once, theres a good chance you will simply go to another lender, working your way down the tree to someone who will take the excess risk on lending that much to you (sub prime). Therefore you may easily accumulate 10 rejections, but still get a mortgage.

The numbers don't really mean that much I guess.

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