Millions renting after lenders pull mortgages |
21 2008 |
| Millions of Britons are staying in the rental property sector after being turned down for a mortgage, a new study has found. Research carried out by GE Money Home Lending revealed that as many as 3.4 million borrowers have seen their applications for loans or mortgages rejected on at least one occasion over the past 18 months. What's more, around 450,000 have been forced to apply for credit on at least four separate occasions before being given the nod as lenders tighten their belts so as to protect themselves from the worst of the credit crunch. According to GE Money's head of mortgage marketing Gerry Bell, for many, renting a property rather than risking trying to get a mortgage, may make the best financial sense in the long-run. "Multiple failed applications can be time consuming and, of course, can be detrimental to a borrower," he concluded. Coupled with a shortage of credit, many Brits are turning to renting due to the ongoing declines being witnessed in the housing market.  |
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