Loan customers 'have to apply multiple times'

Aug 23 2008

A significant number of people are having to apply a number of times before their loan application is approved, it has been claimed.

Research by GE Money Home Lending discovered that in the last 18 months, over 458,000 mortgage and loan customers needed to apply a minimum of four times before being given credit.

The company stated that over 3.4 million first mortgage, remortgage, unsecured loans and secured loans customers were rejected by lenders during this period.

Approximately 30,000 people made over eight applications for credit, while 30 per cent gave up once they had been rejected, the report showed.

Gerry Bell, head of mortgage marketing at GE Money, said: "The key to successfully navigating through the current storm is to ensure you do your homework, check your credit file looks as good as it can and potentially seek expert advice from a broker before making an application."

For those seeking the best loans, David Kuo, head of personal finance at Fool.co.uk, advised people to look for products offering "flexibility".

Source:
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