The research showed that over 738,000 applications had been turned down in the past six months, rising by 60 per cent since March.
MoneyExpert.com indicated that those within the 25-34 age range were most affected, with 4 per cent of people in this group experiencing a mortgage refusal.
Sean Gardner, chief executive at MoneyExpert.com, said: “Life is tough at the moment if you’re applying for a mortgage. The financial environment is far more stringent than in Summer 2006 and people need to be prepared for rejection.”
He added that, with house prices continuing to rise, it would not just be aspiring first-time buyers that would be affected. “Anyone looking to remortgage should apply with caution and take professional advice if they are unsure – too many failed applications could affect your credit rating. Lenders don’t want to take risks when there are pressures on how much people can afford.”
Jenny Challenor, mortgage strategist at Torquil Clark, said: “It’s no surprise that property owners and prospective buyers are reacting like rabbits caught in the headlights. People are blinded by the confusion and are now frightened of making the wrong move, in case they are left financially damaged.”
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