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Expert Advice for Mortgages Declined Due to Affordability.

Don’t let a ‘no’ scare you. Our experienced advisors can help you achieve mortgage approval, even if you’ve previously had a mortgage declined on affordability grounds.

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Declined On Valuation

If you’ve been declined a mortgage on property valuation, our expert advisors are here to help. Let’s figure out your next move.

Declined on Affordability

Don’t let no scare you. Our experienced advisors can help you achieve mortgage approval, even if you’ve been previously turned down.

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Panicking about what after the mortgage underwriting process went wrong? Our team of expert advisors are here to help you find your way.

Declined After Application

A declined mortgage is upsetting, but we’re here for you. Talk to our friendly team of advisors today and we’ll get your application back on track.

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 often declined on affordability grounds often 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 mortgage broker advisors can help you navigate this tricky time. We’ll help you assess your options, identify more appropriate lending 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.

Picking up the pieces. 

If your mortgage has just been declined, you’ll no doubt be feeling concerned. More than that, you may be worried that every other lender is likely to deal with you the same way! We’re here for you.

Our friendly mortgage advisors have worked with many clients who have previously been declined because they were viewed as unlikely to meet the mortgage repayments. 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.

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We can support you and help you to make yourself as attractive to banks as possible, ready for your next application!

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Why have I been declined for a mortgage due to affordability?

There are various reasons why you might fail a lender’s affordability checks. A mortgage lender calculates affordability based on income multiples; if your income doesn’t multiply to the amount you’re seeking to borrow, you may be declined or offered a smaller mortgage loan 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! As expert mortgage brokers, we can help support your next steps, identifying lenders who will consider you in spite of a previously declined mortgage and fine tune 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!

Turning Your Nightmares Into Dreams Realised

When you think you’ve hit that brick wall and have all but given up hope of finding mortgage finance, When the Bank Says No are here to turn your ‘No’ into a ‘Yes’. We have access to a range of specialist lenders who are willing to help those that the High Street lenders just won’t touch. Get in touch today and see how we can turn your dreams into a reality.

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 specialist 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 mortgage applications within a short period can have a negative impact on your credit report. So in short, when moving forward after a rejection on affordability, 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 mortgage provider. If lenders are seeming to offer solutions that seem too good to be true…they probably are.

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 mortgage providers 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.

Can I get declined due to affordability even with a large income?

A large annual income doesn’t guarantee affordability. Most mortgage 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 monthly mortgage payments, 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 bad credit into account or considering old credit commitments to be current obligations. Also, if part of your income is through letting your current property while looking to buy, some 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 a suitable alternative lender 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 and getting mortgage approved, such as going for a promotion, changing careers, or managing your monthly budget better. You could also look to improve a low credit score by paying back current debts before applying for a mortgage, repaying credit card balances, or reconsidering the price of property you are aiming to purchase.

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!

Frequently Asked Questions

Will my deposit improve my chances of meeting affordability checks?

Yes is the short answer. The more equity you have in the property, the lower the amount you will need to borrow – improving your chances of meeting affordability criteria. Lenders determine the amount you can borrow using income multiples – the larger deposit you have put down, the more likely the resulting figure will cover the remaining equity. More than that, some lenders will increase the income multiple they use, allowing you to borrow more money. If you’re struggling with affordability, don’t worry; it needn’t be a 50% or 60% deposit – even going from 5% to 15% and reducing the loan to value can make a big difference to your chances.

What does declined on affordability mean?

Sometimes, mortgages can seem like a minefield of technical terminology. So, let’s say you have a mortgage declined on ‘affordability’… what does that actually mean? In some instances, having a mortgage declined on affordability is due to insufficient income. One of the earliest elements of any eligibility assessment is an affordability check. If an affordability check is failed, a lender will explain this to an applicant.

Most mortgage providers offer mortgages based upon 4.5 times an applicant’s salary. However, if this income multiple doesn’t amount to enough, there are other lenders who are able to offer multiples such as 5 or even 6 times the applicant’s annual income! These alternative income multiples can offer an ideal lifeline to those who may otherwise struggle to secure a mortgage suitable for their needs.

In addition to income, mortgage providers will also look at an applicant’s debt-to-income ratio. Lenders will compare your set outgoings to consistent income and evaluate your suitability for a particular mortgage and the monthly repayments. While significant outgoings can influence your ability to secure a mortgage, this factor is mainly assessed on a case-to-case basis – so there’s no one size fits all! Similarly, many lenders are reluctant to offer mortgages to applicants with seemingly unstable financial positions. This doesn’t just include what’s going on in your financial life right now, it also factors in how your situation might change in the future.

Why wont my lender accept my other incomes as part of affordability calculations?

This is a common question we get asked. Basic income refers to the income you receive every month. 100% of your basic income will be used in affordability calculations, but if you receive overtime, commission or bonus money due to working extra shifts or performing well, the same cannot be said. Some lenders will only take into account a proportion of that part of your income – e.g. 50%.

This is how the lender manages the risk of non-guaranteed income. Other sources of non-guaranteed income that may be capped could include benefits, investment income, rental income, or retirement income.

If your lender isn’t recognising your total income, don’t be disheartened. Some lenders won’t cap non-guaranteed income to the same extent, whilst some may be persuaded with the right number of payslips proving the reliability of this extra income over the last 12-24 months. If you’re not sure how to approach the task of proving to lenders that you are not a high risk borrower and you can afford the monthly payments, our friendly team of mortgage experts can assess your situation and help you determine the next steps on the road to finding a suitable lender.

Will lenders take my benefit income into account when I apply for a mortgage?

Lenders aren’t allowed to discriminate if you’re receiving benefits, but certain circumstances may mean you need to seek expert advice. If more than 50% of your income comes from benefits, you have been previously declined, or you have bad credit, this may complicate the application further. More than that, the type of benefits you are receiving will come into play. Whatever your situation, our specialist affordability mortgage advisors are here to help.

My debts are being repaid by my parents. Will this help my affordability?

Some families choose to repay debts instead of gifting a deposit as this can improve your affordability. Having more disposable monthly income when you apply for a mortgage means you will be seen as better able to afford the mortgage payments – presenting less of a risk to the lender. Remember, it is important to continue managing your incomings and outgoings to ensure you have choices going forward even when this mortgage deal comes to an end.

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 mortgage application where others deemed it unsuitable.

The most important thing to do following a mortgage affordability rejection is not to panic, but to seek expert support and advice from a mortgage broker 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.

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