When you’re buying a home, you no doubt are hoping for an easy ride. If you’re a first-time buyer, all the new lingo can seem like a minefield and the whole process involves understanding. One of the main stages is getting a mortgage approved, but unfortunately not everyone will get the result they want and their mortgage application can get declined.
If you’ve had a mortgage application fail, it’s not the end of the road. It doesn’t mean you can never buy a house. In this guide we look at reasons why you could have been refused a mortgage, and what to do if this has happened.
There are a few common reasons for mortgage approvals to be declined, and below we list a few:
Unfortunately, just because you have a mortgage in principle it doesn’t mean that you will be approved for the mortgage. This may happen when the lender finds something which leads to a rejection.
If this has happened to you, contact the lender and ask why. Whatever the problem is, try and correct it before you apply to a different mortgage lender. It can be worth utilising the help of a mortgage advisor who can increase your chances of success.
You may have calculated the monthly repayments on a mortgage and decided you can afford it. However, it depends on how well you can afford it as to how likely you are to be accepted.
Each lender will have a different rule for calculating affordability, and if they deem that you may struggle to make the repayments, they won’t approve your application.
It’s worth speaking to a mortgage advisor for advice on the best lenders to approach for your financial and employment situation.
I began writing for Property Press Online in October 2019. Particular areas of interest are housing market news and new developments in the market.
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