My mortgage application has been declined – What now?

If your mortgage application has been declined, the first thing you should do is talk to your mortgage adviser about the next steps. It is not advisable to rush off to another lender straight away as each application may show up on your credit file, possibly reducing your chances again.

Secondly, you should not panic. A mortgage adviser can help you understand why you may have been rejected – and help you work on increasing your chances for next time.

Each lender has their own criteria, which means your first choice may not have been the right fit. Mortgage advisers have an in-depth understanding of most lenders criteria and are able to help you find a more suitable option for your circumstances.

There are many reasons why lenders may reject a mortgage application, including:

  • Poor credit history
  • Not earning enough money
  • You’re not registered to vote
  • You have too many credit applications
  • You have too much debt
  • You have used payday loans (even past ones you’ve paid off can hamper your chances with some lenders)
  • Your deposit is too small

You will need to talk to your adviser about everything so they will be able to spot what went wrong and how you can avoid being declined again.

Check our guide to improving your credit file here.

Being rejected by a mortgage lender doesn’t mean you’ll be rejected again

 No matter what your circumstances, an adviser will be able to find a better option for you. There are even many specialist lenders keen to offer mortgages to people who might not quick tick all the boxes of high street lenders.

Speak to an adviser today

A Linear Financial Solutions mortgage adviser can help you with what to do next if you have been rejected. Simply use our 60-second mortgage match below to see the mortgage options available to you and book a call with an adviser.

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Your property may be repossessed if you do not keep up payments on your mortgage. Linear usually charges a fee for mortgage advice. The precise amount will depend on your circumstances but may range from £399 to £599 up to a maximum of 1% of the mortgage amount. The fee is payable when an application is submitted to a mortgage lender and is non-refundable.