Recent data indicates that homeowners are having a difficult time securing home equity loans and may need to apply at many different banks before getting an approval. There are few banks willing to offer home equity loans and the ones that do often charge premium rates for the privilege. Until this changes, home equity loans may become very scarce indeed, if not impossible for many to get.
Gerry Bell, head of mortgage marketing at GE Money Home Lending, said: “Multiple failed applications can be time consuming and, of course, can be detrimental to a borrower. With criteria changing regularly and the risk of decline increasing all the time, it is even more important that borrowers looking to obtain a mortgage use reputable mortgage professionals with broad experience, knowledge and systems at their disposal which will increase the chances of the borrower getting the deal they need.
“The focus in the mortgage market is now on availability more than anything else, with financially strong and experienced lenders the most likely to offer credit. In addition there are a number of dedicated specialist lenders with strong pedigree who may be able to help meet borrowers’ needs.”
Related reading: Home Equity Loans
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