16,000 are being refused a mortgage each month
More than 16,000 mortgage applications are being refused every month, Bank of England figures reveal.
Rejected: Lenders are far more picky when agreeing loans.
In December 12,000 borrowers had their applications turned down but this has jumped to more than 16,000 since March.
The figures emerged as fresh data from the Council of Mortgage Lenders revealed lending fell last month. Gross lending, including new purchases and remortgages, was £10.3bn, 2% lower than in April and 58% down on a year ago.
It is the first time such figures have been released by the Bank and they indicate lenders are increasingly choosy about who they accept.
Richard Morea, from mortgage brokers London & Country, said: 'It's much harder for homeowners to be accepted. We've seen a complete reversal in the way that mortgage lenders do business.
'Where before they were looking at reasons why they should grant you a loan, today they are looking at reasons why they shouldn't.'
According to the CML, it is likely an improvement in new lending has been overshadowed by a slump in remortgaging due to stricter criteria and more attractive variable rates.
CML economist Paul Samter said: 'While recent signs from the housing market have been more encouraging, we do not anticipate a significant recovery in activity in the coming months.
'Lending volumes appear to have stabilised at extremely low levels, but the weak labour market and lenders' limited access to funding will constrain activity for some time yet.'
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