Having your mortgage application refused can be one of the most inconvenient and frustrating things to happen as it will inevitably halt any house-buying plans you may have. However, we’re here to tell you that it may not be the be all and end all to your home-ownership dreams.
Our first recommendation would be to ascertain why you were refused your application in the first place. A low credit score is often the main culprit as this reflects to a mortgage lender that you cannot be relied upon to pay back money lent. Be wary of any store or credit cards that may result in late payments as these will be doing you no favours.
Other issues could include your income not being high enough for the lender’s threshold, not being in your current job role long enough, mistakenly supplying incorrect information or not being registered to vote at your current address. The only real way to find out is to query the lender who will be able to give you a direct answer.
Next time you apply for a mortgage, you want to make sure you give yourself the best chances of getting approved. The easiest way to do this is to follow these simple steps: stay on top of your bills to build up a good payment history, keep balances low to show you can pay bills on time and review your credit report regularly to ensure everything is fully up to date.
We would also recommend you speak with your financial advisor about any ways they think you could personally improve your chances of acquiring that mortgage application this time round.
Have you experienced a mortgage rejection but managed to turn it around? Let us know below.
[Image sourced from the Blue Diamond Gallery]
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