Usually, a lender will let you know why your application was rejected. There are a number of reasons why a mortgage application can be declined. These can range from already having considerable debt, deposit not being sufficient, your income is low, credit history, assessing your ability to pay off the loan, hard searches on your credit profile, and not registering to vote.
To start with you will need to understand the reasons why you were not successful. Once you know why your application has been denied, then you can address each of the factors and find ways to improve on each of these areas. Usually, most are achievable over time.
Get a Detailed Credit Report
We would suggest getting a detailed credit report, which will outline your credit history and will show things like searches, and outstanding debts. The report should also show your credit score, having a higher score is better than a lower one.
The report should also show your conduct, effectively the history of your account, any current credit agreements, historic, and outstanding loans. Also, any frequent missed payments may result in a default on payment recorded on your credit report, which can also negatively impact your credit score.
Frequently maxing out a credit card will impact your credit score, and this can deter some lenders from your ability to live within your means. Also, a low credit score could be caused by not taking out any credit at all, such as credit agreements for monthly car insurance.
We would suggest speaking to a mortgage broker, which has experience in assisting customers that have had mortgages denied. Brokers such as these will know how to approach lenders that offer credit repair loans, which not only help build up your score but may be able to help you secure a mortgage for a property.
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Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk