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What to Do If Your Mortgage Application is declined

Ultimately, rejections are sometimes a part of the mortgage process. Setbacks happen, but the key lies in how you respond. In this blog post, we’ll explore actionable steps and expert advice on what to do if your mortgage application is declined. As well as how you can stay on the path to securing your dream home.

what to do if your mortgage application is declined?

Understand the Reasons Your Mortgage Application is declined

The first step after a mortgage rejection is to understand the reasons behind it. Common factors include an adverse credit profile, high debt-to-income ratio, or issues with the property valuation. Sometimes it’s as simple as paperwork has been filled in incorrectly. Subsequently, knowing the specific reasons allows you to address these concerns and improve your chances in the future. That being said, having your mortgage declined on the first application DOES NOT mean that you will not be able to get a mortgage. With the support of a mortgage broker, your chances are even stronger. 

Your Credit Profile could be the reason that your mortgage application is declined.

An adverse credit profile is a frequent cause of mortgage application declines. Obtain a copy of your credit report and get to know your credit profile. Identify any discrepancies, and work on improving your credit score. Ideally, you could make payments or pay off any outstanding debts. Equally as important ensuring timely payments can positively impact your creditworthiness. We have lots of budgeting tips on our instagram page:

https://www.instagram.com/clementsfinancial/

Check your credit on the credit checker that we use at Clements Financial:

https://www.checkmyfile.com/credit-report.htm?partner=431&transaction=31a1f201609440e781775c56b1b4cd23&utm_source=everflow&utm_medium=referral&utm_campaign=431

Consult with a Clements Financial Mortgage Broker in Peterborough

Seeking the guidance of a local mortgage broker in Peterborough can be a game-changer. Brokers have extensive experience working with various lenders and can provide insights into alternative mortgage options that may better suit your financial situation.

Clements Financial Mortgage & Insurance Peterborough. Local property experts for all home buyers. Mortgage Broker Peterborough.
Clements Financial Mortgage & Insurance Peterborough. Local property experts for all home buyers. Mortgage Broker Peterborough.
https://clementsfinancial.co.uk/contact-us/

When your mortgage application is declined Explore Alternative Lenders

Fortunately, traditional banks are not the only option for securing a mortgage. Alternative lenders, such as credit unions or private lenders, may have more flexible eligibility criteria. With this in mind, a mortgage broker can connect you with these alternative options. They can also advise you on any changes you need to make to your finances. Ultimately, Increasing your chances of approval. We even have our own Adverse credit expert (Ashley Kneebone) who has extensive experience and knowledge in this area. 

Address Debt-to-Income Ratio Concerns

A high debt-to-income ratio is another factor that can lead to a mortgage denial. Evaluate your current debts and explore opportunities to reduce them. This might involve consolidating debts or increasing your income to improve your overall financial picture. Transparency is key here, declaring all your debt is the best way to improve your chances of getting a mortgage. 

Save for a Larger Deposit

Increasing your deposit can strengthen your mortgage application. Saving for a larger deposit demonstrates financial responsibility. Consequently it also reduces the loan-to-value ratio, making you a more attractive candidate to lenders.

Consider Co-Signers or Guarantors

If your financial situation allows, consider enlisting the help of a co-signer or guarantor. Their stronger financial position can enhance your application and provide the lender with additional reassurance. Book a free Q & A with one of our brokers if you are interested for the criteria and details of this kind of mortgage. 

How a mortgage adviser can help in four mortgage is declined. Clements Financial Mortgage and Insurance Peterborough.

Facing a mortgage rejection can be disheartening, but it’s important to view a decline as a temporary setback rather than a roadblock. By taking proactive steps, consulting with a mortgage broker, and addressing the specific reasons for denial, you can position yourself for success in the competitive real estate market of Peterborough. Remember, your dream home is still within reach, and with the right strategies, you can overcome this obstacle and move closer to homeownership. At Clements Financial we can help with both long and short term solutions.