Borrowers Finding It Easier To Get Loans
Over the course of the past couple of years it has been particularly difficult for potential borrowers to be able to get accepted for the new loan they require, whether this is a small unsecured loan, a secured loan or a home owner loan or mortgage.
But new research from the credit reference agency, Equifax, has found that it is slowly becoming easier to be accepted for a new home owner loan, as banks and building societies start to ease their extremely tight lending criteria.
The research found that around 36.8 per cent of individuals who applied for a home owner loan last year, struggled to be accepted for a competitive cheap loan deal and although this is still more than a third of all loan applications, the figures have improved significantly since the previous year.
Although there were 36.8 per cent of all home owner loan applicants who found difficulty in obtaining their first choice of loan deal, back in 2009 the figure was almost ten per cent higher, at 45 per cent of all loan applications struggling to obtain a good deal.
Of those applicants who struggled to get the loan they wanted, 20 per cent said that the rejection was due to a default or arrears on a previous loan, whilst a further third of loan applicants said that the reason was due to not having a large enough deposit.
Equifax believe that this shows that the home owner loan market is becoming slightly easier and lenders are starting to relax their criteria, possibly due to external pressure to lend more.
Neil Munroe of Equifax said “The size of the deposit required for a new mortgage certainly still seems to be a key factor in getting a good deal at the moment. But there also appears to be a heightened awareness of the importance of the data on an individual’s credit file.”
