MORTGAGE DECLINED

"IF WE CAN'T HELP, IT'S NOT POSSIBLE"-

"IF WE CAN'T HELP, IT'S NOT POSSIBLE"-

"IF WE CAN'T HELP, IT'S NOT POSSIBLE"-

"IF WE CAN'T HELP, IT'S NOT POSSIBLE"-

Getting a mortgage but previously refused

Buying your first home is an exhilarating milestone but conversely having an application for a mortgage declined is devastating. The entire process can also feel bewildering and, at times frustrating; but here at ams: our experts are here to guide you through everything you encounter.

A mortgage may be refused at different stages of the process, starting from the initial application to after a mortgage offer is submitted. The stage you reach before your mortgage is declined will impact the reason.

If we can't help, it's not possible

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Refused a Mortgage by the Bank?

Research published by a credit card company reported that one in five applicants have a credit application rejected. Of those, 10% had their mortgage application declined.

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Mortgage Rejected because of Defaults?

These are so common now on the back of COVID, so don’t despair, we have access to every lender. If you have been refused a mortgage, speak with our brokers today.

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"IF WE CAN'T HELP, IT'S NOT POSSIBLE"

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WHY YOU SHOULD CHOOSE AMS

We’ve helped many people across the UK secure mortgages, whether they are a foster carer, contractor or someone who has been refused on the high street.

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"IF WE CAN’T HELP
IT’S NOT POSSIBLE"

We have expert brokers on hand to help you every step of the way, you will find that if we cant help at ams: then generally it’s not possible!

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WE’RE NOT JUST GOOD,
WE’RE AMAZING

With hundreds of independently verified 5 star reviews, we pride ourselves on our service.

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WHOLE OF MARKET
MORTGAGE BROKERS

We have complete access to the entire market, giving you access to every current deal available. Including those from specialist
lenders.

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ACCESS TO EXCLUSIVE
MORTGAGE RATES

We have access to exclusive mortgage rates that you won’t find at mainstream and high street banks

MORTGAGE CALCULATOR

HOW MUCH CAN YOU BORROW?

As a guide, you could potentially borrow around:

The figure above is calculated based around current lender criteria and may not be representative of the actual figure you may be able to borrow.

Want to find out more? Call 0121 4000 052

REFUSED MORTGAGE FAQs

Can you get a mortgage even after being refused?

Yes. We at ams: help hundreds of people each year, after they are refused a mortgage. Please call us for further advice.

Mortgage Declined Glossary

Affordability: A calculation a bank will carry out to ascertain whether you will be able to meet your mortgage repayments consistently.

LTV: ‘Loan to value’ refers to the price of a property after the deposit has been paid.

Mortgage in principle: Statement from your lender confirming they are willing to lend a certain amount of money based on the information provided.

Underwriting: The process of determining if the risk of lending is low enough to be acceptable.

Stress test: A test that reviews whether you could still make repayments if interest rates fluctuate.

What percentage of mortgage applications are declined?

Research published by a credit card company reported that one in five applicants have a credit application rejected. Of those, 10% had their mortgage application declined. Different banks vary in terms of services and features. The lending criteria for being refused a mortgage differs from lender to lender. Do not assume that a refusal of your mortgage application is the final word.

What does adverse credit mean?

Banks tend to be overly pessimistic. They often anticipate the worst outcome when dealing with their customers!

Banks, therefore, take all the necessary measures to safeguard themselves from financial losses, and if repayment of the loan is in doubt, they may deny the application request.

If you have fulfilled the essential requirements, for example:

  • Only wanting to borrow as much as the bank is prepared to lend according to your income
  • You have enough deposit money for the mortgage application

Listed below are several reasons leading to a mortgage application declined scenario, such as:

  • An inability to demonstrate your income or having a pattern of inconsistent income
  • There are mistakes in your application, such as incorrect or mismatched information
  • Self-employment can create risks for lenders
  • You are employed on a short-term contract, variable hours contract, or maybe even a zero-hour contract
  • You are tied to various financial commitments
  • You are a foreign national without citizenship or indefinite leave to remain
  • There is no record of you on the electoral register
  • You have applied for the wrong type of mortgage
  • There have been recent instances of missed or late payments

You may also have a mortgage declined if your credit score shows that you have:

  • Experienced a bankruptcy
  • Have a county court judgement (CCJ) or default against you
  • Had loans or applications for credit and credit cards rejected
  • Had a high number of credit checks
  • Missed or made payments late

These situations may cause a bank to lose confidence that you will be able to make the monthly repayments. Remember that the bank aims to make a profit, so they will shy away from most things that will put them at risk.

What to do if your mortgage has been declined?

The first thing is to confirm why you had a mortgage declined, as this may not be revealed initially. Once you understand why you have been refused a mortgage, you can approach the right mortgage lender or make a plan of action to increase the likelihood of your next application being approved.

Every mortgage application requires a hard credit check, which impacts your credit score. Therefore, it is essential that, after your initial application is declined, you take steps to prevent the same thing from happening again. Banks, like any business, endeavour to make a profit and tend to avoid activities that involve potential risks. If you have had a mortgage rejected, or you are concerned that it may be, get in touch with a mortgage broker who has extensive contacts with a variety of banks and lenders.

MORTGAGE HELP & ADVICE

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