Thursday 16th of April 2009
Borrowers have been urged to keep their debt under control in order to protect their credit history.
Price comparison site moneysupermarket.com noted that lenders are becoming increasingly strict, finding reasons to reject many applications for finance.
Head of mortgages Louise Cuming explained that debt management is important, as missed payments on credit cards, loans and store cards are recorded on credit histories.
The site revealed that 8.8 per cent of vetted mortgage applications have been rejected so far this year, up from the 2007 level of 2.3 per cent.
And Ms Cuming remarked: "Assessing affordability is key for lenders and everyone has to be much more realistic about what they can borrow."
Those who find that they are unable to keep on top of their finances may wish to seek help in creating a debt management plan, in order to prevent future problems.
David Kuo, director of money website the Motley Fool, recently urged borrowers to tackle their most expensive debt first.
