If you’ve applied for a mortgage with us and your application has been unsuccessful, it can come as a bit of a shock and you might feel anxious about what to do next. Sometimes it’s best to explore reasons why your application was turned down and to try and resolve these issues first before applying again, either with the same lender or elsewhere.
Here are some of the reasons why an application might be declined
- Poor credit history - Missed or defaulted payments, County Court Judgements or similar issues on your credit file could suggest to lenders that you might struggle to meet your mortgage repayments.
- High number of credit applications – As well as poor credit history, a high number of credit applications over a short period of time can also negatively affect your credit score.
- High level of debt – including existing debt on loans, credit cards, store cards etc can all indicate to lenders that you might struggle to take on new debt.
- Not registered on the electoral register – Lenders need to carry out checks on your identity and that you live where you say you do. If you are not registered to vote at your current address, it can affect your application.
- Affordability – you might not have enough money coming in from your salary and/or other sources to afford to meet the monthly payments of the mortgage you’re applying for.
- Insufficient deposit – you usually need a minimum deposit to take out a mortgage. If your deposit is too small then your application can be declined.
MoneyHelper provides free, impartial guidance. It brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.
https://www.moneyhelper.org.uk - Telephone 0800 138 777- Mon-Fri 8am-6pm
Unbiased can help you find a financial advisor, who might be able to advise on debt or budgeting, or locate a mortgage broker for a future mortgage application.
https://www.unbiased.co.uk - Telephone 0800 023 6868
- Provides free, independent, confidential and impartial advice, available to everyone.
- Scotland - https://www.citizensadvice.org.uk/scotland/ - Telephone 0800 028 1456
- England - https://www.citizensadvice.org.uk/ - Telephone 0800 144 8848
Experian provides information to Lenders to allow them to make effective lending decisions. They can provide you with a detailed report of your credit history and help to improve your credit score.
https://www.experian.co.uk/ - Telephone 0800 013 8888 – Mon-Fri- 9am-5pm
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You can visit us in our Relationship Centres, or call us on 0333 207 4007. Our lines are open 9am - 5pm Monday to Friday (10am - 5pm Wednesday). Calls may be recorded and/or monitored.