What do you do when your mortgage application is declined?
Through our years of experience in property we know that when buying a home you hope things will go smoothly, but that’s not always the case, it can in fact become a bit of a minefield. The first stage is getting a mortgage approved, we do actually see an outcome people are not always wanting.
Don’t worry if you have had an application declined, it’s most certainly not the end of the road, here we look at reasons why you may have been refused a mortgage and what to do to resolve it.
Some of the most common reasons and solutions:
* Your credit history plays a big part, if you have been seen to have a poor financial history this will need to be worked upon, to improve your financial rating.
* Make sure you're on the voters register, this is something many banks check to confirm who you are, if you are not registered go and do so.
* Pay as much debt off as possible, the less debt you have accredited to you the better, make sure you do so before reapplying.
* Reduce your credit applications the more you registered in your name suggests you may be struggling with debt, keep these to a minimum.
* Make sure you can afford the repayments, it’s not just about the deposit the bank needs to be able to see you can make the repayments without any financial struggle.
* Being self employed can be a cause of a mortgage application being rejected if you are self employed it is probably wise to seek out a mortgage for those that are specifically self employed.
* Check for errors and mistakes, these do happen, read through your credit report and make sure everything is correct.
Having a mortgage in principal but then declined?
Just because you have a mortgage in principle doesn’t mean it will be approved once you apply for the mortgage, the lender could later find something that will lead to the application being rejected.
All is not lost speak with the lender and ask for details on why the application was later rejected, sometimes these problems can be rectified, or seek the help of a mortgage advisor.
If you are facing difficulties with a mortgage being approved then please get in touch and we may be able to help you further.