New figures from the Bank of England have revealed that banks are rejecting more than 16,000 mortgage applications every month. Despite signs that the worst of the recession may be over, there continues to be an increase in the number of unsuccessful mortgage applications each month, with March's figures up by 4,000 from the 12,000 rejections in December. There has been plenty of evidence over the past twelve months to suggest that lenders have become increasingly cautious about who they issue loans to, though these are the first figures to have been released by the Bank of England explicitly confirming this trend.
The figures coincide with new data from the Council of Mortgage Lenders, who revealed that lending declined last month. Gross lending, which includes new purchases and mortgages, stood at £10.3 billion, down by 2 per cent on the previous month, and a massive 58 per cent on the same month in 2008.
Economist at the Council of Mortgage Lenders, Paul Samter, voiced his belief that an improvement in new lending has been overshadowed by a drop in remortgaging as a result of the stricter criteria. Mr Samter also commented that despite more encouraging signs concerning the housing market, any recovery is not expected to be visible in the near future.
Banks Rejecting 16,000 Mortgage Applications a Month
Financial Services > e-banking > Banking news
Banks Rejecting 16,000 Mortgage Applications a Month
Fri, 19 Jun 2009
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