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Mortgage rejections increase fourfold in two years

Mortgage declines have increased by nearly 400 per cent in the past two years, according to moneysupermarket.com.

The website says in 2007 roughly 2.3 per cent of vetted mortgage applications were rejected but now 8.8 per cent are turned down.

It says alll the applications were qualified against the lender’s criteria prior to submission and on paper appeared to fit, but lenders still found reasons to reject them.

moneysupermarket.com head of mortgages Louise Cuming says: “Lending criteria has become too strict – even vetted applications that we would expect to be accepted without a hitch are being rejected.

“Credit histories play an important part in the process and any blemishes will make finding a mortgage increasingly difficult because assessing affordability is key for lenders and everyone has to be much more realistic about what they can borrow.”

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