Mortgage Lenders Reject 8 of 10 Loans in UK

November 9, 2010 No Comments »

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Things are bad all over.

In the United Kingdom, mortgage brokers claim mortgage lenders are rejecting eight out of 10 home loan applications, according to an AP report.

The survey, conducted by the Professional Insurance Brokers Association (PIAB), also found that 77 percent of mortgage brokers believe the mortgage crisis is “worse” or “much worse” than last year.

That’s a pretty high clip – makes me curious what it is stateside. It also means mortgage application volume doesn’t mean what it used to…

Reasons for denial included applicant having no savings (35%), not qualifying for the loan amount required (32%), fears over job security (29%), and bad credit history (29%).

All the more reason to check your credit report for any blemishes, run your debt-to-income ratio numbers, put assets in the bank, hold a steady job, and clear up any potential roadblocks long before applying for a mortgage.

Once you do so, you can get pre-qualified for a home loan and go into the loan approval process with some confidence.

Check out some common mortgage mistakes you can avoid when applying for a mortgage to avoid any nasty surprises late in the game.

Also take note of what mortgage lenders look for to increase your rate of success with the almighty underwriter.

Related: How much house can I afford?

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