According to the latest research gathered from 100 mortgage brokers in the UK, almost half of those who have been rejected for a mortgage in the past, would not reapply for one in the future. Of those declined, almost half again, thought that their best option was to speak to an independent mortgage advisor – however, only 20% of those actually did.
The 18 – 24 year old bracket, were much more probable to be rejected, at 4 in every 10 being unsuccessful (41%). Those in the age range of 35 – 44, showed 15% were likely to be refused and that dropped to 8% of refusals for the 45 – 50 age bracket.
Being rejected from one lender, can make it more difficult to get accepted by another, and they will want to know the reason why.
Of those that were declined, almost 70% assume it was because of a poor credit score, which might be due to adverse credit; that their income was irregular; or because of having a county court judgement against them.
Checking your credit file with one of the reference agencies, will allow you to see what is on your file, and you can correct the information, should you find something wrong. You also need to be on the electoral register at your current address, so that lenders can confirm you are who you say you are. It may be that you have repeatedly applied for credit, every application for credit leaves a footprint in your credit history – if this is the case then avoid taking out new credit deals for at least a year before you want a mortgage otherwise it looks like you have problems dealing with money.
David Blake, principle mortgage adviser at Which? Mortgage Advisers, sums it up by saying.
“Ensure that you have all the documents and relevant information you need before submitting your mortgage application and don’t over-stretch your finances by applying for a loan that you won’t be able to afford.”