Been Declined? | Mortgage Advice in Manchester
Mortgage Advisor in Manchester | Declined mortgages
Failing a Credit Score For a Mortgage
Passing a credit score can be quite a challenge for some, especially when applying for a mortgage. Depending on the Mortgage Lender, some credit scores can be harder to pass. If you would like to find out why you didn’t pass, unfortunately, you may be out of luck. Lenders rarely give out the reasons as to why you didn’t pass, due to them not wishing to disclose the contents of their scoring system.
This is where an expert Mortgage Broker in Manchester may be able to help. Once you obtain a copy of your credit file, your dedicated Mortgage Advisor will be able to go through it with you, working out which lenders you’re better off looking at for your mortgage. Putting down more deposit also makes passing your credit score easier.
There are a variety of things that you can do to improve your credit rating. If you are in possession of a credit card, you should use it regularly and ideally pay off the full balance each month. Being on the voters roll to show where you live also helps. We recommend closing down old bank accounts, credit cards and store cards that you no longer use.
Failing a credit score for one lender isn’t the end of the road, so don’t give up! There is a chance that another lender may be willing to accept you. Be warned though that having too many hard credit footprints registered against you may have a negative effect. Having too many credit searches can have an effect on your credit score.
Declined For a Mortgage On Affordability
All lenders have unique ways of calculating the amount you are able to borrow. Theoretically, you could approach 10 different lenders and get 10 different answers, though this is purely dependant on who you speak to. Some lenders are more generous than others for example when an applicant classes themselves as self-employed.
Your mortgage lender may consider assessing 100% of an employee’s bonuses and overtime, however, this isn’t the case for all lenders. Some may accept income that isn’t directly earned through work, such as tax credits, child benefits and maintenance.
When starting out with an enquiry, many lenders will only require an affordability assessment to determine your potential course of action. These are referred to as “Soft Searches” and it gives them a rough idea of how to proceed without leaving a hard credit footprint.
On the flip side, some lenders will only perform a “Hard Search”, which includes a mandatory credit check on top of their affordability assessment. Click the following link to find more information on Hard & Soft Credit Searches.
If you are looking to potentially buy a home, we recommend having an affordability assessment carried out prior to home viewings, as this lets you avoid potential disappointment. Proving you have been able to maintain mortgage or rent payments in the past doesn’t always guarantee you’ll pass the lenders own affordability assessment.
Outside of Lending Policy
Each individual lender will have their own strict lending criteria. Depending on your personal circumstances, some lenders may be better options than others. These lenders look to carve out niches for themselves, with the aim of attracting high quality mortgage borrowers who might not have been a fit for their competitors.
Here are some examples at to why your mortgage application may be declined:
- Length of time in employment or self-employment
- A married applicant applying for a sole mortgage
- Minimum/maximum age or mortgage term
- Minimum/maximum loan amount
- Adverse credit history
- Not enough deposit
- Non-standard property construction
As a local Mortgage Broker in Manchester, we’ll use our experience and knowledge of lenders and their criteria to recommend a mortgage for you, personalised to your own circumstances. We have been able to help many First-Time Buyers in Manchester, as well as people looking to Remortgage and Buy-to-Let.
If you have a unique or complex situation, we recommend looking to speak with a Mortgage Advisor as being declined with various lenders directly could negatively affect your chances of being accepted for a mortgage.