Refused a Mortgage
Its not uncommon for people to be refused a mortgage, specially if its from a high street lender, since more and more people are living life with credit cards and various financial agreements it only takes one slip to damage your credit record. Its that damage that usually means a mortgage refusal from mainstream lenders. However over the past 3 years more and more lenders have become more leniant on lending to those with partial credit impairments.
If you have been refused a mortgage then you need to consider various options before shopping around. First of all, if you are refused a mortgage, the decision is not left on your credit file, instead the fact you applied for a mortgage is placed onto your file. Using this logic, if you are refused a mortgage by one lender, and you proceed to other lenders, it will show on your credit file that you have made multiple mortgage applications, it is this that makes other lending sources jubious to as why you have applied to more then one lender, if you had been approved on any of those applications you would have no further applications on your credit file.
So, if you have been refused a mortgage, stop, and review the situation.
Reviewing Your Situation
The best place to start is by looking at your credit file, you can do this by signing up with one of the main credit reference agencies such as Equifax or Experian. You will need to verify your identity, but after this you will have access to your credit file.
From here you can assess your credit file and look at any transactions that have been made, look for ccjs, defaults or outstanding balances, perhaps from previous credit arrangements that have not yet been satisfied. Also, compare your credit report, make sure that there are no false entries for credit present, this could be a sign of fraud or a mistake at the credit agency. If you have been refused a mortgage, it mainly comes down to your credit file, however other factors can play a key part in the decision of the lender. If you have been refused a mortgage, evaluate your demands, consider raising a deposit of at least 5% towards your mortgage. Other factors include affordability, if you do not satisfy the lenders requirements then this is another path to refusal.
You may have been refused a mortgage, refused a 100% mortgage, refused a lifetime mortgage, refused a fixed rate mortgage etc, a deposit can make a big difference as your reducing the amount needed for the mortgage Finance.
Low Credit Scores Low credit scores can mean mortgage lenders fail to take you seriously and can influence a mortgage refusal, if you have already been declined, rejected or turned away for a mortgage by a mainstream lender don't worry we are here to help. Most mainstream lenders have an automated credit scoring system to evaluate prospective borrowers during the application process, if the borrowers score does not meet the requirements then the lender will refuse the mortgage. A new generation of lenders and mortgage intermediaries who deal specifically with bad credit borrowers are popping up on a frequent basis meaning more bad credit borrowers have another chance at borrowing for a mortgage rather then suffer being refused a mortgage. More and more lenders are now offering non conforming mortgages to people who have impaired credit.
The range of mortgage products available to people with a poor credit score will depend on how bad you credit history is. For instance people who have missed mortgage repayments in the past are seen as less of a risk compared to customers who have been declared bankrupt.
Taking out a specialist non-conforming mortgage can help to rebuild your credit score, making it easier to get finance in the future.
If you have been refused a mortgage then our team of advisers here at a mortgage 4 you can assist you through the mortgage application process with a lender who can help you, we source a lender who can offer you the mortgage you are looking for at the best possible rate available to you.
Before making any financial decision it is always advisable to seek advice from an independant mortgage adviser.
Apply for a mortgage
If you have been refused elsewhere for various financial products from mortgages to Finance, we can help
FAQS
have been refused a mortgage from multiple lenders, will this affect my credit score?
No this wont affect your credit score, your applications for a mortgage will be listed down on your credit file.
Its this that further lenders can see when you apply for a mortgage, multiple applications may have been caused by refusal or by shopping around.
Because of my many past refusals, does this mean I wont be able to get a mortgage?
This is neither a yes or a no answer, and would have to be answered after evaluating the reasons why you have been refused, taking a look at credit scores, income, and the amount your applying for.
How do I find out what my credit is like?
The best way of evaluating your credit is by obtaining a credit report from experian, and a credit report from equifax, these are the 2 main credit reference agencies in the UK.
http://www.experian.co.uk - Experian
http://www.equifax.co.uk - Equifax
