Finding The Best Mortgage Deal After Being Declined On Affordability
Having your mortgage application declined can be frustrating, upsetting, and highly inconvenient. However, affordability can be a spanner in the works for people in a range of circumstances. Mortgages are declined on affordability grounds due to having non-standard sources of income, an income that doesn’t meet income multiple calculations, or a high debt-to-income ratio. If you’ve been declined for a mortgage and are worried about what to do next, our team of friendly advisors can help you navigate this tricky time. We’ll help you assess your options, identify more appropriate opportunities, and put yourself in the best position the next time around. With us, a declined mortgage doesn’t have to be the end of the road.
Why have I been declined for a mortgage due to affordability?
There are various reasons why you might fail a lender’s affordability checks. Lenders calculate affordability based on income multiples; if your income doesn’t multiply to the amount you’re seeking to borrow, you may get declined or offered a smaller amount. Another reason could be that though your income is adequate, your outgoings are too high either due to reckless spending or a high debt-to-income ratio. You could also be declined if your total income isn’t taken into account for some reason, or your financial stability is considered unsustainable.
If you’re in this position, don’t panic – all is not lost! We can help support your next steps, identifying lenders who will consider you in spite of a previously declined mortgage and finetune your application to provide a better chance of success the next time around. Get in touch with our friendly team and we can get started!
I’ve been declined due to affordability. What should I do?
So, your mortgage has been declined on affordability, what next? Don’t let a rejection set you into a spin, there are steps you can take to get back on track. Buying the home of your dreams might not be as out of reach as you think!
Wait before Re-Applying
When we experience a financial setback, it can feel instinctive to react quickly…but hold your horses! On one hand, there may well be other lenders who are willing to offer you a more appealing income multiple, but be mindful…this might not work in your favour. In fact, seeking out an alternative mortgage too quickly can be detrimental to your chances of succeeding. Submitting too many applications within a short period can have a negative impact on your credit report. So in short, when moving forward after a rejection on accountability, slow and steady wins the race. Don’t jump back in too soon and jeopardise future applications.
When seeking out something as life changing as a mortgage, it’s important that you opt for an experienced and reputable provider. If lenders are seeming to offer solutions that are too good to be true…they probably are. Checking reviews and asking advisors about their qualifications might offer you some insight into the quality of their service.
Don’t Rely Solely on Comparison Sites
When searching the market for any service provider, comparison sites can be helpful! However, when it comes to mortgage lenders, there are a host of options available beyond those listed on comparison sites. Approaching lenders directly may offer you access to rates reserved for internal enquiries. Don’t lose out on alternative offerings, pick up the phone and get in touch!
Seek Expert Advice
As we’ve already mentioned, navigating the world of mortgages can be overwhelming. Without expert advice, it can be almost impossible to know exactly what your options are. So, if you’re stuck under a mortgage rejection raincloud, there’s no need to stand there alone! With the help of industry experts such as those at When the Bank Says No, the right mortgage for you might not be a million miles away.
Maximise your chance of approval with specialist advice from an expert in Mortgage Declined on Affordability
Can I get declined due to affordability even with a large income?
A large income doesn’t guarantee affordability. Lenders will consider your current outgoings and credit commitments, reducing the amount you can borrow in line with the financial commitment these present. Even if you will have paid other debts off by the time you begin prospective mortgage repayments, the lender may reduce your affordability figure as a result. Another possibility is that your credit file is out of date and lenders are taking previous credit commitments to be current obligations. Also, if part of your income is through letting your current property while looking to buy, lenders may take this amount away from their affordability calculations.
If you’re struggling for affordability or have already been declined, an experienced mortgage advisor will be able to assess the overall picture and provide helpful advice and support. With a wide variety of lending criteria out there, we’ll help you identify lenders more amenable to your situation, sources of income and affordability.
What can I do to improve my affordability?
There are many ways to go about improving your affordability, from going for a promotion or changing careers to managing your monthly budget better. You could also look to pay back current debts before applying for a mortgage, repaying credit card balances, or reconsidering the price of property you are aiming for. When the Bank Says No will help you gain a better understanding of your current affordability and put plans in place to improve it over the coming months. Then, when you’re at your most affordable best, we’ll guide you through the mortgage application process and save you plenty of hassle and heartache!
Mortgage Declined Due to Affordability FAQs.
Mortgage Declined on Affordability Calculator
Professional guidance for mortgages declined on affordability.
Affordability is a crucial aspect of a mortgage lender’s decision, and can lead to refusal if it doesn’t meet their requirements. Luckily, criteria vary across the market, and many lenders will be happy to accept your application where others deemed it unsuitable. The most important thing to do following a declined mortgage is not to panic, but to seek expert support and advice as soon as possible. When the Bank Says No will help you understand why your application was refused and what you can do to improve it moving forwards. With us, your dreams of owning a home don’t have to be put to bed. We’ll help you bounce back from a declined mortgage and achieve approval the second time around.
Picking up the pieces.
If your mortgage has just been declined, you’ll no doubt be feeling upset. More than that, you may be worried that every other lender is likely to feel exactly the same! We’re here for you. Our friendly mortgage advisors have worked with many clients who have previously been declined. From helping you figure out what caused the problem to scouring the market for lenders better suited to your situation, we’ll help you achieve the finance you need against all the odds.