Tighter application criteria for mortgages means some UK buyers are now being rejected four or more times before getting a homeloan.
Statistics show up to 3.4 million people have been turned down at least once in the last year and a half.
More than 412,000 people could not get a home loan at all despite repeated efforts, according to the figures from GE Money.
The figures confirm the squeeze on lending is among the root causes of the housing market slowdown.
Experts also warned that people were risking clocking up bad credit ratings by making repeated applications.
GE Money head of mortgage marketing Gerry Bell said:
“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.”
He added multiple failures can be “time consuming and detrimental” to borrowers.
The GE Money figures were released on the same day that the Council of Mortgage Lenders said gross mortgage lending totalled around £24.8 billion in July, down 27 per cent on the same month a year ago.
However, the £24.8 billion total is five per cent higher than the lending recorded in June.
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This is a vicious circle, when failed mortgage applications appear on your credit file.
Wouldn’t it make sense for somebody to review this situation?