Mortgage application declined?


With the number of mortgage approvals in the UK currently at an all-time high – it is certainly an exciting time to apply for a mortgage.

Whether you are looking to get on the housing ladder or move house, getting approved for a mortgage is still not a straightforward process. In fact, many good applicants will find that their application is denied, especially the self-employed and those with a less than perfect credit score.

We’ve caught up with our Managing Director, Charlie Bradley to shed some light on why your mortgage application could be declined.

Why was my mortgage application rejected?

“Your mortgage application can be denied for a number of reasons” explains Charlie.

“On a basic level, this can be as simple as not being registered on the voters roll (electoral roll) or having a poor credit score or limited credit history to begin with.”

“Very often, it comes down to not meeting the lending criteria or the lender’s profile. When you apply with a bank or building society, they may have very strict criteria in terms of who they are willing to lend to, based on factors such as income, outstanding debt and deposit amount.

“Sometimes it comes down to your deposit, if perhaps you can only put down 5% or 10% of the property’s value, the mortgage provider may think that you are trying to borrow too much, or deem you a higher risk and would require a larger deposit from you.”

“Some other things that can make mortgage approval difficult is if you are self-employed, a sole trader or have not been employed at the same place for very long – since lenders like to see a long-term, stable employment and income when they are choosing who to lend to.”

What are my next steps?

“If you have been declined for a mortgage once, do not worry, there are plenty of opportunities available and you can certainly get approved,” confirms Charlie.

“For starters, have you considered using a broker? Rather than going directly to one bank or one lender, a broker like Mortgage Advice Solutions will help match your criteria with a lender who is most likely to approve you.

“If putting down a large deposit is an issue, there are a number of schemes available from the Scottish Government. Our professional advisers at Mortgage Advice Solutions can explain these schemes in more detail, checking that you qualify and providing you with our Expert Advice.

“Finally, if you are starting right from the beginning, you should sign up to vote for free, since this is always a good trust indicator. And if you are concerned about your credit score, consider using a free trial from one of the UK’s main credit reference agencies to check your score and see where simple and fast improvements can be made.”

“With potentially hundreds of mortgage schemes available using Mortgage Advice Solutions, we are certain to find the right mortgage for you.”

If you would like to discuss your personal circumstances in more detail get in touch with Mortgage Advice Solutions for a private and confidential chat.