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Reasons Your Mortgage Application Has Been Declined

Failing a Credit Score for a Mortgage in York

For First-Time Buyers in York applicants passing a credit score for a mortgage can be quite hard for some applicants. Some Mortgage Lenders credit scores are harder to catch than others. If you fail, a credit score Lenders can sometimes seem unhelpful in terms of why you have failed the credit score. In any case, your application might not have been a success due to a mixture of reasons.

Having a Mortgage Broker in York can come in handy, If you can obtain a copy of your credit file, your Advisor we can assign you to will go through it and try and work out which Lenders criteria you most likely fit into these categories. Another handy tip is the more deposit you can put down the easier it is to give a credit score for a mortgage.

Improve your credit score

There are things you can do to improve your credit score. Malcolm has done do a video on our MoneymanTV YouTube Channel regarding things you can do to improve your credit score. We rely on user-generated content for our videos, so if you are like Lynn and have a question, please feel free to send a message using the email address provided, and don’t forget to like and subscribe.

How Can You Improve Your Credit Score? | MoneymanTV

If you have a credit card, you should use it regularly and ideally pay the balance off in full each month. It would be best if you were on the voter’s roll where you live, that helps. You can also close old bank accounts and credit and store cards you are no longer using.

Do not give up just because you fail one Lender’s credit score – there is a chance another Lender may accept you but do be careful about having too many hard credit footprints registered against you. Having too many credit searches can affect your credit score.

Declined for a Mortgage on Affordability

All Lenders have different ways of calculating how much you can borrow. You could approach ten different Lenders and get ten different answers. Some Lenders are more generous than others, for example, when an applicant is self-employed.

Some Mortgage Lenders can consider assessing 100% of an employee’s overtime and bonuses, whereas others do not. Some Lenders accept “unearned” income such as tax credits, child benefit and maintenance.

A Mortgage Broker in York like us can approach several different Lenders without the need for a credit check to perform an affordability assessment. If you are looking to buy a home, it’s a good idea to have an affordability assessment carried out before you start viewing properties to avoid potential disappointment.

Proving that you have maintained mortgage or rent payments in the past does not necessarily mean that you will pass a Lender’s affordability test.

Outside of Lending Policy

All Lenders have strict mortgage lending criteria. Some Lenders are better than others in certain situations. Lenders look to carve out niches for themselves to attract good quality mortgage borrowers who might not tick all the right boxes for their competitors.

Some examples of why your application has been getting declined for being outside of policy are:

  • Length of time in employment or self-employment
  • Adverse credit history
  • Not enough deposit
  • Non-standard property construction
  • A married applicant applying for a sole mortgage
  • Minimum/maximum age or mortgage term
  • Minimum/maximum loan amount

In any case, a Mortgage Broker in York like us can use our experience of Lenders and criteria tools to recommend the most suitable mortgage for you, tailored to your circumstances. If your situation is outside of the norm, then you should look for mortgage advice as being declined elsewhere may affect your chances of being accepted.

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