80% of mortgage applications are refused

FOUR out of five mortgage applications are being refused by financial institutions, according to a survey of brokers.

In a week when economists warned house prices will recover only when banks start lending, when it comes to getting a home loan, two-thirds of brokers believe the situation is worse than this time last year.

It is also taking longer to close loans, with two-thirds of brokers saying it now takes four months or longer, up almost 6% on the first quarter of the year.