Many homebuyers are having difficulty getting a good mortgage deal at first request, according to a survey from online credit information provider Equifax.
It surveyed its consumer customers about mortgage applications in September 2008 and found that 23% had difficulty obtaining a good deal on first application.
"The impact of the current financial climate seems to be continuing to hit those looking for a good mortgage deal," said Neil Munroe, External Affairs Director, Equifax.
"This probably isn’t a surprise to many in the home buying market, but it does indicate that lenders are still being very selective about who they extend the best deals to.
"A quarter of respondents to our survey this year thought that they probably couldn’t get a good deal first time round, because of past defaults on their credit file – this is a pretty similar percentage to those we surveyed last year. But what has changed is that 17% of respondents put their difficulties in getting a mortgage down to not having a large enough deposit, compared to just 9% saying the same in 2008. This shows just how important it now is to have a reasonable deposit before making an application."
While just 19% of respondents made two to three applications last year before being successful, this rose to 30% in 2009, highlighting the difficulties consumers continue to face in meeting lenders more stringent credit acceptance criteria.
"Our survey clearly shows that borrowers are finding it difficult to secure good mortgage deals, although they appear to be reaping the benefits of lower interest rates to manage their finances better generally," Munroe said.
"Whilst lenders remain cautious, it’s important that homebuyers or those coming to the end of their current mortgage deals do as much as possible to keep their credit status as positive as possible."
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