Reasons Your Mortgage Application in Middlesbrough Has Been Declined

Credit Score Mortgage Advice in Middlesbrough

Every lender has their way of calculating your credit score. You won’t qualify with every lender as they all require a different credit score criteria. At times, they may be easy to pass, other times they may have stringent policies and you might find it difficult to pass. If a lender has declined your application, you may not have been told why you failed it. In some cases, they might have justified reasoning for failing you, however, some may not have and you won’t be able to find out why.

It’s at this point where you should realise the benefits of a Mortgage Broker in Middlesbrough. We are here to help you and guide you throughout the process starting from the early stages, right through to the end of your mortgage journey. We will never put you forward for a deal when you are going to be declined.

Before meeting a Mortgage Advisor in Middlesbrough, it is recommended that you obtain a copy of your credit report to show to them. They will be able to go through it with you and try to match you with the most appropriate lender according to your case. The more deposit you have available to put down, the easier your chances will be to secure a mortgage.

Improving your credit score in Middlesbrough

Your credit score is one of the most important aspects of your financial situation. It tells lenders how responsible you are. The better your score, the easier it will be to get approval for new loans or lines of credit. A higher credit score can also open the door to the lowest available interest rates when you borrow. There are several things you can do to improve your credit score in Middlesbrough. A few of the important things that you need to focus on are:

• If you are a credit cardholder, make sure that you pay off your monthly bills on time. 
• Pay off past due balances. 
• Pay off any debt etc. 
• Close down any old bank accounts or store cards as this will help clear up your report.  
  

If you fail one lender’s credit score, it is not the end of the road, don’t give up! Many lenders prefer to lend to a specific demographic, so just because you didn’t match one lender’s criteria, doesn’t mean that you won’t match another. Although, don’t keep applying to lots of different lenders, as lots of hard credit searches on your file can negatively impact your credit score. 

Declined for a mortgage on affordability 

Every lender has their mortgage affordability calculator to work out how much you can afford to borrow. Some lenders will be more lenient and accommodating, whilst others are more strict and rigorous in their approvals, but that varies from lender to lender. 

An ideal example of this is if you are Self Employed in Middlesbrough, the lender may be more lenient and merciful with you and your application. Some lenders may only look at your base income, overtime and bonuses whereas others may also accept “unearned” income, such as tax credits, child benefits, and maintenance benefits. 

As an experienced Mortgage Broker in Middlesbrough, our advisors have access to over 40 different lenders whom we can approach without the need for a credit check, to perform an affordability assessment. If you are looking to buy a house then we would recommend that you have an affordability assessment carried out before you start looking for properties to avoid any future possible disappointments. Get in touch for more information.

Meeting your monthly mortgage or rent payments helps provide evidence about your credit history but again that does not guarantee that the lenders will pass you in your affordability test.

Outside of lending policy

As we have mentioned before, each lender will have their own lending criteria. Lenders also aim to carve out a niche of their own, so that good quality mortgage borrowers approach them. Here are some examples of why your mortgage application could be denied or has been denied for being outside of policy: 

• Length of time in employment or if one is self-employed  
• Poor credit history 
• Too much debt 
• Too many credit applications 
• A married applicant applying for a sole mortgage 
• Minimum/maximum age or mortgage term 
• Minimum/maximum loan amount 
• Not enough deposit 
• Non-standard property construction 
  

As a devoted Mortgage Broker in Middlesbrough, we will use our knowledge and expertise extensively to find the best lender based on your situation. It does not matter if your situation is a little bit more difficult, we will still try our best to help you through your process. 
 
We have been in the mortgage business for quite a long time now and we know exactly how to get over the majority of mortgage hurdles. Feel free to get in touch with a Mortgage Advisor in Middlesbrough and enjoy your free initial mortgage consultation.