Mortgage rejections increase fourfold

ad9898_3

After the media ramping of the last few days, with RICS recording a mammoth increase of 4% from historical lows (just 900 extra approvals), I will counter their 'green shoot' with a 400% increase in mortgage rejections compared to 2007.

Nearly 9pc of vetted mortgage applications are being rejected this year compared to just 2.3pc in 2007, according to moneysupermarket.com.
The website said that all the applications were qualified against the lender's criteria prior to submission and on paper appeared to fit. However, lenders still found reasons to reject them.

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

Perhaps Louise would like to acknowledge that 50% of the money that used to be available to anyone who could fog a mirror has now disappeared, and is unlikely to reappear for quite some years.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5159151/Mortgage-rejections-increase-fourfold.html

FoxtonsRIP

Sometimes people need protecting from themselves so this isn't necessarily bad news.

lostinrates

FoxtonsRIP wrote: »

Sometimes people need protecting from themselves so this isn't necessarily bad news.

Yep. If we want sensible lending and borrowing we have to accept that not everyone who wants a nmortgage, even nice people, aren't going to get them.

Dan:_4

Look after your credit rating if you want to get a mortgage. Even a late credit card payment could ruin your chances these days. Also, if you have never had credit, better get yourself a credit card to show any lender your ability to manage money.

Graham_Devon

ad9898 wrote: »

After the media ramping of the last few days, with RICS recording a mammoth increase of 4% from historical lows (just 900 extra approvals), I will counter their 'green shoot' with a 400% increase in mortgage rejections compared to 2007.

Was that what all that ramping and pound hitting new highs was about?!

:rotfl::rotfl::rotfl::rotfl:

Were so goddam desperado!!

ad9898_3

Graham_Devon wrote: »

Was that what all that ramping and pound hitting new highs was about?!

:rotfl::rotfl::rotfl::rotfl:

Were so goddam desperado!!

Yes this is what they are basing their stablisation of the market on for the rest of 2009, truely amazing hey, especially conmsidering it's Spring, if the market was on the way to stablisation I would have expected at least a 50% rise.

Rochdale_Pioneers

1. The article compares refusals this year with 2007. What was the rate in 2008?
2. Despite the rate of refusals the number of mortgages going through is increasing again.

As for the low base argument, the only way you're going to build on that is by increasing it. Saying that an increase on a low base isn't an increase is arguing that 1+1 isn't 2.

StevieJ

ad9898 wrote: »

Yes this is what they are basing their stablisation of the market on for the rest of 2009, truely amazing hey, especially conmsidering it's Spring, if the market was on the way to stablisation I would have expected at least a 50% rise.

You still think you can talk the market down 99.999999999% of potential buyers are not interested

chucky

Graham_Devon wrote: »

Was that what all that ramping and pound hitting new highs was about?!

:rotfl::rotfl::rotfl::rotfl:

Were so goddam desperado!!

here's your answer Graham - comparing apples and oranges again or was it another low base argument

Rochdale_Pioneers wrote: »

1. The article compares refusals this year with 2007. What was the rate in 2008?
2. Despite the rate of refusals the number of mortgages going through is increasing again.

As for the low base argument, the only way you're going to build on that is by increasing it. Saying that an increase on a low base isn't an increase is arguing that 1+1 isn't 2.

Edale

There were 24,300 approvals in February against an average figure for February of 76,000 (between 2002 & 2007). Irrespective of what the figure was the previous month, there is no way this can lead to a sustained recovery. The Rics figures are still massively negative even if they are not so massively negative as they have been. Unemployment will continue to rise, again, providing a drag on house prices.

Things do seem a bit rosier and sold signs are definitely appearing, there must be many people who have delayed their purchase, if you take the approval figures above it would suggest this could be in the region of 50,000 people a month. The slightest bit of 'good news' and the fact that spring is in the air will most certainly flush a few of these out and I would say we will see this trend over the next couple of months.

The economy in general, unemployment, lending constraints and lack of confidence will ultimately be the stronger influences and lead prices lower for the rest of 2009 IMHO.

luvpump

Damn Didnt know this had already been posted