Credit crunch affecting a quarter of all applications

The continued effects of the credit crunch have resulted in one in every four mortgage deals being affected by tighter lending conditions, GE Money Home Lending has revealed.

The firm's research has found that some 87 per cent of mortgage brokers have seen deals that have been affected by the credit crunch, due to deals being withdrawn and rates being changed.

Despite this, some 59 per cent of brokers thought that a week's notice was sufficient warning prior to a deal being withdrawn, though issues with this practice remain.

"Pipeline speed, efficiency and clarity are clearly important to broker businesses, so it is crucial that lenders work hard to keep them well informed when making such alterations," said GE Money Home Lending sales director Duncan Berry.

"This will help combat the unacceptable number (55 per cent) of brokers who say they are seeing an increase in deals not being honoured even at offer stage," Mr Berry continued.

The number of rejected applications has risen by 60 per cent over the past six months, MoneyExpert.com reported in October.

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