Lenders 'turn down 3m for credit'

21/08/2008

Around 3.4 million Britons have had a loan or mortgage application turned down in the past year and a half, GE Money claimed today.

The financial firm also said that 458,000 have had to apply four or more times to get credit.

Many lenders have tightened their criteria for borrowers with the onset of the credit crunch and general economic downturn, due to their worries over their own revenue.

This has led to many "high-risk" customers who might have been granted a loan in boom times being refused.

Gerry Bell, head of mortgage marketing at GE Money, 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."

Tags; Debt Management and Banking,

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