Increasing amount of people are being refused credit
Research from GE Money has established that over three million borrowers have had a mortgage or a loan rejected at least once in the last 18 months.
The tightening of lending criteria has meant that even those with a good credit history are finding it increasingly difficult to obtain a mortgage or a loan.
The research also found that one in eight were turned down up to four times before finally being accepted and that nearly 400,000 people did not manage to get accepted despite several attempts.
However, GE Money warns that several failed applications can increase the risk of borrowers being rejected again. This is because applications can be logged on credit records and can count against a borrower the next time they apply.
According to Gerry Bell, head of mortgage marketing at GE Money, their data shows borrowers should 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 require.
GE Money urge consumers to check their credit report regularly to ensure it is up to date, also closing down obsolete credit cards and searching comparison sites for the best deal before applying can also help.
GE Money recommends consumers use mortgage brokers to assist with applications as this could reduce the high number of rejections.
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