Mortgage Application

Why Your Mortgage Application in Coventry Has Been Declined

Mortgage Application Advice in Coventry

Passing a credit score

Every lenders’ playing field varies when it comes down to credit scoring. Some lenders score will be easy to pass whilst others will not. It can be hard to get the exact reason why you failed as it could be down to a mixture of things. Failing a credit score is not the end of the world! Don’t give up!

This is where we come in. Your local Mortgage Broker in Coventry is here to offer you a helping hand through the daunting mortgage process. If obtain a copy of your credit file, come and speak to one of our Mortgage Advisors in Coventry. They will study your file and try their hardest to match you with a lender that you have a good chance of passing with.

Another way to increase your chances of passing a credit score will be to offer a deposit greater than the minimum of 5%. It shows the lender that you are financially stable and are more than ready to start your mortgage journey as a First-Time Buyer or again as a Home-Mover in Coventry.

How to improve your credit score

In Coventry, there are lots of different ways that you can improve your credit score. Paying off a credit card that you use regularly is a great way to show a lender that you can manage recurring payments. Getting yourself registered on the voter’s role can also help improve your credit score. This is a great way to prove your current living address to lender. If you have any old bank accounts or old store cards that you no longer use, you should close them down. Lenders don’t want to see lots of different registered accounts to your address when they haven’t been used for a long time. You can read about more ways to improve your credit score here. If you fancy a change of scenery, you can also watch our “How Can I Improve My Credit Score” video on MoneymanTV.

Even if you have failed a lenders’ credit score, never give up! There are so many lenders out there each with different criteria. Before you know it, you will find the perfect one for you. Although, too many hard credit searches can have a negative effect on your credit file. Lenders will see that you have failed multiple times and this could possibly rule you out in getting a mortgage altogether.

Declined for a mortgage on affordability

Each lender holds their own unique lending criteria and their own way of working how much you are able to borrow. Every lender is different, you could approach ten different lenders and get ten different answers. You may get lucky and your lender may give some leeway with your application. On the other hand, you may be unlucky and get a strict lender were everything has to be perfect. Some lenders will assess 100% of your overtime and bonuses but others may not. Generous lenders will also let you pass with “unearned” income such as tax credits, child benefits and maintenance.

In Coventry, we have over 40 different lenders on panel and one of them could be the perfect one for you! As a local Mortgage Broker in Coventry, we can approach any of these lenders for you and perform an affordability assessment for you without the need of a credit check. If you are planning to buy a home anytime soon, it may be in your best interests to get an affordability assessment carried out. Make sure you do this before you begin searching for properties. This would give you a good idea of what financial situation you are in before you start getting credit checks.

Proving to the lender that you are keeping on top of your mortgage and rent payments does not guarantee that you will pass their affordability test.

Outside of lending policy

You will find that every lender will have their own unique lending criteria. You will see that some are stricter than others, depending on your personal circumstances. Lenders aim to attract specific audiences/demographics. They do this so that they are approached by good quality mortgage borrowers who may not fit their competitors lending criteria. Here are some reasons why your mortgage application could be declined or already has been:

  • How long you have been employed or self-employed
  • Adverse credit history
  • Not meeting the minimum deposit
  • Non-standard property construction
  • Married applicant applying for a sole mortgage
  • Minimum/maximum age or mortgage term
  • Minimum/maximum loan amount

Let your local Mortgage Broker in Coventry help you out! We will make the whole mortgage process stress-free, which is exactly what you want! Even if you feel that your situation is a little bit complicated, don’t ever hesitate to call us. We have dealt with thousands of complex cases and yours has most likely come up before and we have managed to get through it. Speak to a Mortage Advisor in Coventry today and receive a Free Initial Mortgage Consultation.

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