More people rejected for mortgages and loans

GE Money has recommended consumers get professional advice following the release of statistics revealing more people are being accepted for loans and mortgages.

Over 3.4 million people have been rejected for secured and unsecured loans, mortgages and remortgages in the 18 months up to July this year, the study found.

Furthermore, 450,000 customers were turned down four or more times before having their application accepted.

This may indicate that people are risking debt management problems by agreeing to loan and mortgage rates above a rate they can afford, just so they can be accepted.

“The key to successfully navigating through the current storm is to ensure you do you homework, check you credit file looks as good as it can,” GE Money’s head of mortgage marketing Gerry Bell said.

He added that a broker may also help before making an application.

This week Moneysupermarket.com said homeowners should look at both mortgage rates and fees to ensure they get the best deal.

By Morwenna Kearns