Lenders ‘derail’ housing market

Moves by banks and building societies to tighten up mortgage deals and raise interest rates is hampering borrowers’ ability to re-enter the housing market. Brokers have reported a higher number of mortgage applications being turned down – as many as 30 per cent being rejected against 20 per cent a year ago. In the past three weeks, Woolwich, Lloyds and RBS have withdrawn loans for purchase and not replaced them.