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What stops you getting a mortgage?

what stops you getting a mortgage

No one wants to go through the trouble of finding and applying for a mortgage, only to be declined. As well as being frustrating, it can also stop you from buying your chosen house. So, what stops you getting a mortgage? It's handy to know any potential issues so that you can do your due diligence before you apply.

Of course, there can be a number of reasons why a mortgage lender might decline someone, but in this post, we'll cover a few of the most common...

Poor credit history

When you apply for a mortgage, the company you apply to will do a credit search on you to check your credit history. This helps them to see how you've managed other credit accounts and whether you've had any problems with credit in the past, such as late payments, defaults or county court judgments.

A poor credit history makes you a greater risk to a lender and so they are more likely to decline your application - or offer you higher rates.

No previous credit

Just as a poor credit history can stop you getting a mortgage, so can no credit history at all. The purpose of a credit search is to check your previous credit behaviour so if you don't have any, this also creates a risk for lenders.

Too many credit applications

Each time you apply for credit and a credit search is completed, this leaves a footprint on your credit report. When you make a large number of applications in a short space of time, this can be an indication that you're struggling financially - or that you may already be over committed when it comes to borrowing money.

Not registered on the electoral roll

Verifying your identity is a key part of the process when you apply for a mortgage. When companies do a credit search on you, part of this search includes checking whether you're registered on the electoral roll at the current address you've provided in your application.

If you're not registered, then this can cause problems with your application - and even mean that you're declined a mortgage. 

Errors on your credit report

It's a great idea to check your credit report before applying for a mortgage. This will help you to identify any issues up front - as well as to see if there are any mistakes. Even a simple typo can create problems in an application so it's better to be safe than sorry.

There are 3 main Credit Reference Agencies in the UK and we'd recommend checking your report for all of them.

Experian

Equifax

TransUnion

Not using a mortgage broker

Don't let lack of support be what stops you getting a mortgage! When you book your free consultation with one of our friendly advisers at BB Mortgages, we'll chat to you about your specific circumstances so that we can find a mortgage that's best suited to you and your current situation.

Of course, we can't guarantee that your application will be accepted but we have the experience and industry contacts to ensure you have the best chance possible.

Book a FREE Consultation!

We'd love to help you buy your perfect home! To chat to one of our friendly advisers, book your free consultation today... ⬇️

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Book a FREE Consultation!

We'd love to chat to you about finding you the perfect mortgage for your needs. Click below to book your free consultation with one of our expert advisers.

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Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.


Ellen King

BB Mortgages
2019-09-04T15:53:10+01:00

Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

BB Mortgages
2016-03-22T17:24:36+00:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.

Mr L

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

BB Mortgages
2016-09-13T12:38:09+01:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

BB Mortgages
2016-09-13T12:43:22+01:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

BB Mortgages
2016-09-13T12:48:10+01:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

BB Mortgages
2016-09-13T12:49:06+01:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.
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