Refused for a mortgage? Here’s what to do and how we can help you get approved
Are you an applicant for a mortgage? You’re probably feeling frustrated and disappointed right now.
- In reality, it is very common to decline mortgage applications
- Rejection by one lender does not mean you are out of options.
- It is possible to save your mortgage and negotiate a great deal with the right advice.
This is the place to be if you have had a mortgage declined or are concerned about rejecting your application.
Contact our mortgage brokers today, and you will speak with a specialist mortgage broker.
Whether you have taken payday loans, have too much debt, are self-employed, or have a poor credit history, we are here to get you a mortgage approval. We will introduce you to a lender whose lending criteria you will match.
Mortgage application declined? Here are the next steps…
We want you to know that many fallback options help homeowners regain control.
Nearly half of the customers we helped to get onto the property ladder were turned down by banks or brokers because they feared losing their mortgage. It turned out that they had simply approached the wrong broker or mortgage lender the first time.
These are the steps you can take to increase your chances of getting a mortgage agreement from that rejection. It’s easiest to speak to one of our expert mortgage advisors, do this by clicking the quote button below.
1. Refrain from the urge to apply again immediately
It’s easy to rush to find an alternative lender. However, this temptation is something you need to resist. Re-applying too soon is not a good idea.
You can’t guarantee that things will be different if you do it all and choose another mortgage lender. Before re-applying, it is essential to understand why you were declined fully. A specialist broker can help.
2. Take a look at your credit report
When re-applying, it is essential to consider the effect this may have on your credit score. Too many requests for financing in a short time frame can be a red flag for lenders and put future applications at risk.
Instead of hurrying to find a lender, take some time to think about it. We will make sure that you receive the right advice to increase your chances of getting the mortgage plan renewed.
3. Get the right advice
You don’t want to talk to any broker after you have been denied a mortgage. They can help you regain control of your plans and establish long-lasting working relationships with lenders that are best placed to approve them.
Our free broker-matching service will match you with the right mortgage advisor. This expert has been carefully selected based on your circumstances, needs, and reasons for rejection. This will significantly increase your chances of approval.
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Reasons why a mortgage application would not be approved
Most mortgage applications are rejected due to incorrect advice or the wrong lender being approached. There are many mortgage providers with flexible lending criteria. The market is enormous.
Even if your bank declined you, it doesn’t mean that a mortgage broker won’t help you find an alternative lender.
These are the top reasons why mortgage applications are rejected.
Affordability
Bad credit
Requirements for deposits
Issues of income and affordability
Many homeowners interested in becoming homeowners are denied mortgages because they don’t have enough income or complex income types that the lender didn’t understand.
We work with brokers specialising in multiple-income mortgages so you can borrow more. Additionally, we have advisors who can help those with a low income overcome mortgage rejections daily.
Overdrafts arranged or not
Some mortgage lenders consider being in an overdraft a sign that you are not managing your finances well. It can be either an unarranged or arranged overdraft, where you have exceeded a bank’s agreed limit.
We have good news for you if one of these lenders has rejected your application. Our network brokers specialise in salvaging mortgage applications that have become stalled because of an overdraft.
A lender can also decline an application later in the process. This is even after it has been accepted and you have an agreement in principle. This could happen after the mortgage application has been referred to an Underwriter or as late as the exchange of contracts.
These specific circumstances are described in more detail.
After contract exchange, decline
AIP declines
At valuation, decline
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Decreased after contract exchange
It can be frustrating, upsetting, and stressful to hit a snag so close. But don’t let that stop you from exploring your options.
This guide will show you what to do if your mortgage is denied after a contract exchange. We also explain how to get your plans back on track quickly.
These are just a few problems our mortgage advisors can help you with. We could help you find an advisor who specialises in solving the problem if your mortgage application was rejected for any other reason.
A hand-picked expert will significantly increase your chances of successfully renegotiating a deal with a lender that has rejected you.
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Have you been declined for any other reason? We can still help you…
These are just a few of the many issues that our mortgage advisors can help you with. We could help you find an advisor who specialises in solving the problem if your mortgage application was rejected for any other reason.
A hand-picked expert will significantly increase your chances of successfully renegotiating a deal with a lender that has rejected you.
Even if you are rejected for a mortgage, you can still obtain one
After being denied a mortgage, it’s normal to feel frustrated, stressed, or disappointed. Although this can seem like a huge setback, you should remember that it is possible to renegotiate your loan with the lender that declined you or get a better deal elsewhere.
Your chances of success can be increased by choosing the right broker
By matching you with the best advisor to assist you, we can increase your chances of winning control of your mortgage application. They will negotiate renegotiations on your behalf and search the whole market for a better deal.
It is risky to do it all alone.
You can’t guarantee that things will be any different if you try to find a new lender on your own, even if an expert is there. Your credit score could be negatively affected if you submit too many applications within a short time.
We can quickly help you find the correct solution.
If you have been denied a mortgage, we understand the importance of timing. The brokers we work with can help you get your house purchase back on track quickly.
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FAQs on refused mortgage applications
Can I get a mortgage refused?
Our complete guide explains the eligibility criteria for mortgages in the UK. You should now have a good idea about whether or not you are eligible for a mortgage. However, consult a mortgage broker if you are still uncertain about your chances of getting a mortgage.
What happens if your mortgage application is denied?
This could be a setback in your homebuying goals. In the worst case, it can even be fatal. You might end up with a credit score that is not favourable and possibly lose any fees you paid upfront. It all depends on how far along the process you are.
It’s possible to rebound from a mortgage rejection. You can either negotiate with the lender that turned you down or find another lender. Hiring a mortgage broker can increase your chances of a successful outcome.
What should I do before I apply again?
Mortgage lenders are only likely to pay attention to credit reports that have been updated within the past 3-6 months. However, the time you should wait before applying for another mortgage may vary depending on why you were denied.
If you are rejected for a loan because of your bad credit history, you will likely have more lenders in the future. Based on your circumstances and needs, a mortgage broker will advise you on how long you should wait.
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Can I appeal against a lender’s decision to decline my mortgage application?
Most mortgage lenders offer an appeals process. You can talk to them about it.
This involves you writing why you believe you have grounds for appeal.
The lender will decide if they want to take another look at your application.
Is it possible to have my credit score affected by a declined mortgage?
Hard credit checks will be available to other finance providers.
They usually stay on file for two years, however, your credit report won’t tell other lenders whether or not your mortgage application was approved.
Lenders might be suspicious if you have too many hard credit checks within a short time. They might be wary of why you are being turned down by other lenders and advise caution.
Why would a buy-to-let mortgage application be denied?
You might not be approved for a buy-to-let mortgage if your property’s expected rental income isn’t sufficient to cover the mortgage payments by a minimum of 125%.
If you are a first-time buyer, you can be denied approval. Most lenders prefer that borrowers who have had landlord experience will qualify.
Is it possible to be rejected a remortgage?
Yes. The mortgage lender will decide if you are eligible for a refinance.
Before they approve your agreement, they will verify that nothing had changed from when you first took out your mortgage. If you have had bad credit in the past or have had to take a pay cut, it could mean you are no longer eligible.
Talk to a mortgage broker if you are having difficulty remortgaging.
A mortgage broker will conduct a market search on your behalf and determine if it is possible to refinance with another lender. We can help you secure a mortgage.
What should I do if my mortgage porting application has been rejected?
Some lenders do not allow mortgage porting, and others have different eligibility criteria.
Talk to a broker if your mortgage lender doesn’t let you transfer your existing mortgage to your next house.
You might be able to apply for a mortgage with the same terms and rates as your current one.
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