Six reasons mortgage lenders turn you down | This is Money

Six reasons mortgage lenders turn you down | This is Money

The credit crunch and financial crisis has made lenders tighten the rules on offering credit. It has been particularly noticeable on mortgage lending.

Financial institutions have been keen to build up big reserves in case another crisis hits, and want to make sure that the money they do lend is unlikely to turn into a 'bad debt', which would increase their vulnerability.
So they have been insisting on bigger deposits to give themselves a bigger buffer of protection in case you default and the house is repossessed and sold. Deposits of 25% to 40% are required to get the best deals. Mortgages with down payments of 5% and 10% are becoming available again but borrowers will face rates of 5% or 6% when the UK bank rate is a lowly 0.5%.