5 Ways Your Mortgage Can Be Declined (And How To Stop It Happening)

Getting A Mortgage Can Be Stressful, Especially If Everything Goes Wrong. Here Are 5 Things That Can Go Wrong And How To Avoid Them


1 Your Credit Isn’t Good Enough


A very common reason for a declined mortgage is a low credit score. Missed credit payments, county court judgements or defaults can result in the dreaded ‘mortgage declined’ notice


How To Avoid


Well obviously don’t miss any payments on your credit commitments. However, make sure that you are aware the state of your credit score by signing up withy Equifax or Experian and keeping a regular eye on the state of your credit.


2 You Choose The Wrong Lender


Choosing the right lender is essential when obtaining a mortgage. If you are attempting to obtain an income stretch, are self-employed but only have one year of accounts or are on a temporary work contract then not all lenders will look at your application sympathetically.


How To Avoid


Find an independent mortgage adviser. They should, assuming you find a good one, be able to recommend the right lender based on your individual circumstances. Plus, as most brokers are paid by the lenders then you should be able to find a free mortgage broker who will not charge you a fee.


3 You Get Screwed By The Estate Agent


Getting gazumped, having the price of the property increased at the last minute and losing your property to another buyer, even though it had supposedly been taken off the market. All of these things will invariably be blamed on the other party but we all know that it is down to one person – the estate agent.


How To Avoid


Easier said than done when dealing with such a shady profession but try, if you can to find an agent that cares about their clients at least as much as they do about getting the deal done.

4 The Legals Go Horribly Wrong


People get so focused on the actual obtaining the mortgage offer that they forget that there is a legal process that has to be undertaken whenever you buy a property. This legal process can cause the property purchase to fall through if not completed fast enough or even worse can leave you with an unsellable property.


How To Avoid


Make sure you find excellent local conveyancing solicitors. The cheapest are not necessarily the best although you do not have to pay a fortune either. A good conveyancer will allow you to avoid many of the pitfalls that come with buying a house.


5 You buy a complete lemon


Houses are like cars in that you can buy duds. Woodworm, damp, subsidence – you name it and there are a number of reasons why your dream home can turn into a moneypit.


How To Avoid


Ensure that you pay for a comprehensive valuation. It is mind boggling how people will fork out hundreds of thousands of pounds and then put their money and happiness at risk by paying for just a basic valuation to save a few hundred quiud.


At the very least take out a homebuyers report which will be more detailed tham a basic valuation and comes with protection should the valuer miss something serious.

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