So, you have been refused for a financial product, whether it was a mortgage, a commercial mortgage or a loan, or somesort of credit, there is a reason behind it. People can become very upset and frustrated when hunting high and low for a product they can afford, a product they need or a product they want. It becomes even more frustrating when they are refused, even if its for bad credit that was satisfied years ago.
The fact is, a lender is lending you money, and requires that money to be paid back over an agreed period. Think of it like someone borrowing your car, only to never return with it again, thats a breach of trust and you out of pocket. The lenders use your credit file to evaluate how you manage your finances, and how trustworthy you are in making repayments.
Your credit file is in effect, the equivalent to a CV, that develops when you make financial transactions, take out credit agreements and loans etc. Your repayments, and reliability all goes into your credit file, where it stays for up to 6 years. The lenders can base alot of emphasis on your credit file, so a credit file plastered in ccjs, missed payments and defaults, wont help you when it comes to getting a loan or a mortgage or even another credit agreement.
When you make late payments, it goes on your record, if you default on payments, it goes on your record, and so forth. This is the first thing that needs to be evaluated before steaming ahead with more loan applications. But let us clarify that refused loan applications are not labeled on your credit file as refused, just the fact you made a loan application. Although it does not list the lenders decision on your credit file, it is not hard to work out that you probably was refused if there is alot of loan applications under your file, it looks as if you may have gone from one loan provider to another in hope for approval.
So what solutions are there?
Well before you jump into the deep end, it is always advisable to review your credit file which you can do by visiting the 2 main credit reference agencies in the UK, each agency may hold different information so its always best to evaluate both reports
Experian ( http://www.experian.co.uk )
Equifax ( http://www.equifax.co.uk )
Upon evaluation of your report you can then take a look at repairing your credit file, satisfying outstanding payments or give us a call, and we will source you a lender who can specialise with your type of damaged credit whether it be bankruptcy or ccjs.
Lenders will usually refuse you if you do not meet the guidelines or do not have the correct affordability for the loan. Here at a mortgage 4 you we have access to the full market place for loans, mortgages and general credit. With this market we can match a lender to your requirements and help you on your way.
Remember to think carefully before taking any futher loans against your home, as failiure to repay can lead to repossession. It is always best to seek the advice of an independant financial adviser before securing any further loans. Remember, there are many things to consider before jumping out and taking the loan.
Loans and mortgages can carry either high interest rates, fluctuate with the market, and when unsecured can be far harder to acheive.
So if you have been refused a mortgage, loan or some form of credit, then why don't you call us on 0845 2 605 506 or fill out our enquiry form/call back form to discuss more with our professional advisers.
Things to consider when applying for any sort of financial product:
- Is your credit file in good shape
- How much can you really afford
- What is your affordability after income
- How long have you been in your current employment
- Do you have any assets for security
- Is it a single or joint application
- Have you recently had any ccj's or defaults or missed payments
- How many mortgage payments have you missed in the last 12 months
