(1888PressRelease)
October 18, 2007 - London (online-unsecured-loans) : According to a research by price comparison service, around 738,000 home loan applications were rejected in the six months to October this year. The interest rate increments started to affect and the borrowers were forced to face severe lending conditions. The number of home loan rejections was up by 59 per cent over the previous six months.
It is relevant to note that interest rates are currently prevailing at six-year high. Since August 2006, the Bank of England has increased the base rate of interest five times in a succession. Since May this year, two quarter points rise have been effected by the Bank.
Lenders have also tightened their credit policies. The increasing numbers of bad debts and a global credit crunch have rocked the UK financial market, with Northern Rock plunging into turmoil.
Sean Gardner, chief executive of MoneyExpert said: “Life is tough at the moment if you're applying for a mortgage. The financial environment is far more stringent than in the summer of last year and people need to be prepared for rejection. With so many applications being rejected it's unlikely that only first-time buyers are being affected.”
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