Dizzy Miss James - A Travel / Food/ Lifestyle Blog

TRAVEL ▪️ VEGETARIAN FOOD ▪️ LIFESTYLE

8 Jul 2018

4 Reasons Why You May Get Turned Down For A Mortgage



This is an advertisement feature


You have finally decided to get out of the rental market. You have considered your requirements for your dream home. You find a house you like. And then you book an appointment with a mortgage lender, excited at the prospect of finally buying a house. And then...

You are told no! For whatever reason, you haven’t been accepted for a mortgage and your dreams of owning a home crash down around you. Why you ask them. Why are you being so mean? Why are you destroying my dreams? Don’t worry, it’s probably not personal, and there are good reasons why you may get turned down for a mortgage. Here are some of them


You can’t afford the repayments


Before choosing a house, consider whether you can actually afford to make the mortgage repayments. The bank will take a number of things into consideration, and if you don’t pass the stress test (an investigation of your income and expenditure), you will be turned down. This is to cover the banks back, but it also helps you, as you don’t want to run into financial trouble down the line after buying something you really can’t afford. Still, it is possible to pass the stress test, as you can increase the repayment period, take out a joint mortgage, and reduce your expenditure in the run-up to your application.

You have too many debts


Any debt you hold can work against you. Unpaid bills, existing bank loans, the multitude of credit cards you may have in your pocket...these are just some of the debts that may be hanging over your head. The lender will also look at the added debt the mortgage will create for you, as this will influence their decision on how likely you are going to be able to manage the repayments. Therefore, sort out your debts before you apply for a mortgage. Pay off outstanding bills, consolidate your debts with companies such as Freedom Debt Relief, and then cut up any credit cards. This will benefit your mortgage application, and will also benefit your life in the long term.

There are issues with your credit report


The bank will take your credit report into account when deciding your viability for a mortgage. Any discrepancies, such as an old mobile phone contract at a previous address, or a poor credit score, possibly because you still haven’t paid off those debts, are going to scupper your application. Before you apply for a mortgage then, look for ways to improve your credit score, as this will vastly improve your chances of getting approved. 

You are applying with the wrong lender


There may be no issues with your credit score at all. You may have paid off your debts. Your finances may be impeccable. But if you are applying to the wrong lender, you will get turned down. Crazy as it seems, but lenders take other things into account. You may be too young or too old, for example, or you may be self-employed. Whatever the reason, you aren’t ticking the lender’s boxes. However, considering that these factors are only a problem with certain lenders, you should then move on to another lender, rather than assume you are going to be stuck on the rental ladder forever. Perhaps do your research into the lender at the outset too, or speak to a mortgage advisor, to help you find the right lender for you.


Final word

Getting a mortgage is tough, especially in today’s housing market. But don’t give up on your idea of a dream home if you have been turned down. Follow our advice, and then seek further help if needed, to ensure you stand a better chance of getting a mortgage. The keys to your dream home await you!



SHARE:

No comments

Post a Comment

Blogger Template Created by pipdig