The top reasons why people are being declined a mortgage

You need to know these common reasons for being declined a mortgage application...

At Jones & Young, we’re constantly hearing of stories where people have been declined a mortgage application due to a variety of reasons.

Thankfully, the high number of rejections isn’t something we’re experiencing; our succession rate for securing mortgages for people like you is very high, but it’s not uncommon for people to be declined the loan they need to buy their home.

So, what are the most common reasons for being declined a mortgage? Here are our top four. Speak to us for more.

1. Poor credit history.??

If you have been a big spender in the past, and have failed to pay off what you owe on time, your credit history will be poor. As a result of your historical actions, lenders are more apprehensive when handing over their money, so decline applications. But there can be ways around this – it may take time – but there are things you can do.

2. Not on the electoral roll.???

When you’re not registered to vote, you don’t exist in the eyes of a lender. Being on the electoral roll allows mortgage companies to track you and see any positive or negative history besides your name. So, before applying for a mortgage, ensure you are on the register.

3. Too much debt.???

Some people find themselves earning less than what they owe, so of course, they will be rejected for a mortgage. When you apply for a mortgage, you must be able to demonstrate your affordability. If your mortgage repayments were ￡1,000 per month, for example, the lender would like to see evidence that you earn enough to repay your mortgage, afford all your other bills, and live. Having debt in addition to all of this is a burden for someone looking to borrow.

4. Unsubstantial salary.???

Similar to the previous point, if you are to secure a mortgage you need to be able to afford it. If your salary doesn’t allow for this, you’ll struggle to get the money you need. The higher your salary, the more you can borrow.

There are more reasons why you may be declined a mortgage application – especially as a first-time buyer, so get in touch and I can share them with you today.