More than three million borrowers have been turned down for a mortgage or loan at least once in the past 18 months, according to GE Money.
The research also revealed that one in eight – around half a million people – were turned down up to four times before eventually being accepted and that more than 400,000 people did not manage to get accepted despite repeated attempts.
Gerry Bell, head of mortgage marketing at GE Money says that the research emphasises the importance of getting good mortgage advice.
"Multiple failed applications can be time consuming and, of course, can be detrimental to a borrower," he said.
"With criteria changing regularly and the risk of decline increasing all the time, it is even more important that borrowers looking to obtain a mortgage
use reputable mortgage professionals with broad experience, knowledge and systems at their disposal which will increase the chances of the borrower getting the deal they need."
GE Money's research found that around 30,000 people made more than eight applications, and is warning that multiple failed applications can increase the risk of borrowers being turned down again. This is because applications can be logged on credit records and can count against a borrower the next time they apply.
Mr Bell says that consumers can take action themselves to increase their chances of a successful application by checking their credit report
to ensure it is up to date.
He also suggests taking other actions like closing down unused credit cards and researching on the internet using price comparison websites before applying.
Mr Bell says that the high number of rejections could potentially be cut if more consumers used mortgage brokers to help with applications.
"The focus in the mortgage market is now on availability more than anything else, with financially strong and experienced lenders the most likely to offer credit, he explained.
"In addition there are a number of dedicated specialist lenders with strong pedigree who may be able to help meet borrowers needs."
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