Consumers Being Rejected
Just short of half a million people are having to apply for mortgages and loans more than once before being accepted, according to new research. A recent study carried out by GE Home Money Lending has shown that many consumers are applying with a number of different lenders before being accepted.
But repeatedly applying for credit is not only time consuming, it is also detrimental to the borrower, the organisation noted. And knowing where to look to find the right kind of finance could be an important thing for individuals to do, it is suggested.
Gary Bell, head of mortgage marketing at GE Money Home Lending, said: "The focus in the mortgage market is now on availability more than anything else, with financially strong and experienced lenders the most likely to offer credit. In addition there are a number of dedicated specialist lenders with strong pedigree who may be able to help meet borrowers' needs."
But the expert said that when people are looking for a loan or a mortgage, they should as far as possible aim to apply to lenders where they feel they have a good chance of application success. And "reputable, professional" intermediaries are in a good position to help people try and achieve this, he said.
The organisation claims that now is the time when the mortgage intermediary market is most important to consumers, particularly because around 450,000 people had to apply four times or more when looking to borrow money through a mortgage.
Indeed, the research indicates that up to 3.4 million people have said they've been rejected for secured loans, mortgages or unsecured personal loans over the course of the last 18 months - something that the organisation says is a result of the credit crunch.
Although some people call it a day after rejection, others are prepared to keep applying until they find a sympathetic lender, the company claims. It states that just short of 30,000 applicants applied more than eight times when applying for one type of loan.
But consumers should be aware that each failed application could be logged on to a credit reference, so may go against borrowers in future. That is why people should think twice before making multiple applications, they added. Instead, it suggests that opting to use the services of an intermediary could help with the success of an application.
Earlier this year, the company noted that making some of the most popular home improvements, such as a loft conversion or the addition of a room through an extension, could help to increase the value of a property by more than 50,000 pounds. And for consumers looking to increase the value of their house, considering a loan to help cover the costs of such work may be one option.
In related news, households have recently been unable to take advantage of capped rate tariffs for electricity and gas, research from the Motley Fool indicated. Following the latest round of price hikes from utility providers, some consumers have attempted to switch to fixed tariffs, but not all have been successful, the organisation claimed.
But repeatedly applying for credit is not only time consuming, it is also detrimental to the borrower, the organisation noted. And knowing where to look to find the right kind of finance could be an important thing for individuals to do, it is suggested.
Gary Bell, head of mortgage marketing at GE Money Home Lending, said: "The focus in the mortgage market is now on availability more than anything else, with financially strong and experienced lenders the most likely to offer credit. In addition there are a number of dedicated specialist lenders with strong pedigree who may be able to help meet borrowers' needs."
But the expert said that when people are looking for a loan or a mortgage, they should as far as possible aim to apply to lenders where they feel they have a good chance of application success. And "reputable, professional" intermediaries are in a good position to help people try and achieve this, he said.
The organisation claims that now is the time when the mortgage intermediary market is most important to consumers, particularly because around 450,000 people had to apply four times or more when looking to borrow money through a mortgage.
Indeed, the research indicates that up to 3.4 million people have said they've been rejected for secured loans, mortgages or unsecured personal loans over the course of the last 18 months - something that the organisation says is a result of the credit crunch.
Although some people call it a day after rejection, others are prepared to keep applying until they find a sympathetic lender, the company claims. It states that just short of 30,000 applicants applied more than eight times when applying for one type of loan.
But consumers should be aware that each failed application could be logged on to a credit reference, so may go against borrowers in future. That is why people should think twice before making multiple applications, they added. Instead, it suggests that opting to use the services of an intermediary could help with the success of an application.
Earlier this year, the company noted that making some of the most popular home improvements, such as a loft conversion or the addition of a room through an extension, could help to increase the value of a property by more than 50,000 pounds. And for consumers looking to increase the value of their house, considering a loan to help cover the costs of such work may be one option.
In related news, households have recently been unable to take advantage of capped rate tariffs for electricity and gas, research from the Motley Fool indicated. Following the latest round of price hikes from utility providers, some consumers have attempted to switch to fixed tariffs, but not all have been successful, the organisation claimed.
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