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• High earners 'shut out of market' (08 04 2008 04:15)

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High earners 'shut out of market'

The effects of the credit crunch have deepened to such an extent that even wealthier homeowners are struggling to remortgage, the Times reports.

Recent tightening of loans lending criteria from banks has seen minimum deposits for the best rates rise to 25 per cent among many firms.

Moreover, credit checks on prospective borrowers - with risk-averse lenders searching for prior evidence of missed payments or defaulted loans - are also on the increase.

The newspaper also talked to Ian Cordwell, who is finding difficulties in securing a mortgage for a £1.3 million home in Dorset from lender Nationwide.

This is despite the self-employed consultant already having 50 per cent equity in his current £1.4 million home.

Even though Mr Cordwell also offered to pay off a further £100,000 when moving, the firm refused to allow him to remortgage.

"I couldn't believe the illogicality that Nationwide adopted, of preferring me to stay with a larger mortgage rather than allowing me to reduce my mortgage without damaging their security," he said.

"I was dumbstruck."

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