New Bank of England figures released earlier this month have shown that over 16,000 mortgages applications are rejected each month.
In December of last year this figure was just 12,000 but has jumped to over 16,000. We already know from the Council of Mortgage Lenders that lending figures were down in May by 2 per cent on April’s figures and it was indicated that this was only so high because purchases have overtaken remortgages.
Significantly, this is the first time the Bank of England has released such figures and it suggests that banks are being rather picky about who they choose to accept.
Richard Morea, from mortgage brokers London & Country, said: ‘It’s much harder for homeowners to be accepted. We’ve seen a complete reversal in the way that mortgage lenders do business. Where before they were looking at reasons why they should grant you a loan, today they are looking at reasons why they shouldn’t.’
The BoE’s monthly lending report showed positive signs for the mortgage market as purchases have increased to the highest they have been so far this year.
Indeed, the National Association of Estate Agents have also given figures showing that for every house on the market there are currently four potential buyers. Despite these positive signs, experts continue to warn we are not out of danger yet but for those undertaking CeMAP training to become mortgage advisors these are good signs.