Telegraph - Nearly 9pc of vetted mortgage applications are being rejected this year compared to just 2.3pc in 2007, according to moneysupermarket.com.
The website said that all the applications were qualified against the lender's criteria prior to submission and on paper appeared to fit. However, lenders still found reasons to reject them.
"Credit histories play an important part in the process and any blemishes will make finding a mortgage increasingly difficult. All debt repayments – credit cards, loans, store cards etc – must be made on time. Details of all missed repayments are held on your personal files for six years and may count against you when your credit rating is accessed.
"Assessing affordability is key for lenders and everyone has to be much more realistic about what they can borrow. The most anyone can reasonably hope for is four times their salary – anything over this is more likely to be rejected. And you can't expect lenders to take overtime or commission into consideration when they assess affordability, they are likely to base the maximum lending purely on your basic salary."
Many lenders are advertising that loans at so-called 90pc LTV are available but mortgage brokers claim that applicants with a clean credit history are being turned down for the most minor of misdemeanours.
Matt Andrews of Money Workout, the mortgage broker says that the best buy rates give a misleading impression and that most borrowers will get the advertised rates, even if they meet the general criteria the lender has set.
"Lenders are being extremely picky and getting a deal with more than 85pc LTV is very difficult. They may be advertising great rates on mortgages of 90pc LTV and above, but the reality is that most borrowers do not qualify – even if they have a clean credit score – as lenders have got very tight on criteria."
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