Mortgage Declined? What Next?

If your bank or building society have turned down your mortgage application it means you don’t fit their lending criteria.

Your mortgage application is assessed against the lender’s (that’s your bank or building society) list of requirements for people it will lend to. If your mortgage is declined it means you didn’t tick all of their boxes. Every lender assesses applications differently. For example, one lender may require three months bank statements, another only one month. Some won’t lend if you have been in your current job for less than a year, others will.

That’s why a mortgage decline is not the end of the road. You just need to find the lender whose criteria you meet. This is why it can be helpful to use a mortgage broker like Just 4 Mortgages, as we are familiar with every lender’s criteria and will be able to match you to the mortgage firm most likely to accept your personal circumstances.

Common reasons for a declined mortgage application

• Poor credit history. Check your credit report- this can be done on a free trial!
• Not registered to vote. Lenders need to confirm who you are and where you live. One way they do this is via the electoral roll. Register to vote today
• Too much debt. Try to pay down your debt as much as you can
• Too many credit applications. When you apply for credit the lender will check your credit report, leaving a footprint on it. Too many applications make it look like you have debt problems
• Affordability. The lender’s calculations say you won’t be able to afford the mortgage repayments. Read our guide to how much you can afford
• You’re self-employed. Use a mortgage broker to find a lender who offers self-employed mortgages
• Small deposit. Lenders will need you to meet a specific loan-to-value calculation to be suitable for a mortgage. Find out how you can save a bigger deposit.
• A mistake. You could have had your mortgage declined because of a mistake on your credit report. Check your report with the big three credit agencies and ask for any errors to be correct.

Where to go for help if your mortgage application is declined

Here at Just 4 Mortgages we always recommend you use a mortgage broker. This is especially true if you have had a mortgage application declined. We know the market and know what lending criteria every firm has. This means they can match you to the right lender for your personal circumstances.

We can also help you assess your previous application and work out where you went wrong. If you want support you can book a Free Initial Consultation via our online booking system.

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