If you’ve been declined for remortgaging, a mortgage broker may be able to help, offering solutions and guidance to secure a new deal.
In this blog, we’ll detail the ways they can assist and talk you through the various options open to you.
Common reasons for remortgage applications being declined
Typical reasons for being declined include:
- Having fallen behind with the repayments on your current deal
- Poor credit rating
- Your employment status is no longer favourable
- You’re recently self-employed
- Your previous application was in joint names, but you need one in your name alone and can’t satisfy the lender’s criteria
- Your income and outgoings have changed, negatively impacting your affordability
- Your age means you won’t be able to repay your mortgage by the upper age limit set by the lender
- Your debt-to-income ratio is too high
- Adverse loan-to-value– often under 5% equity in your home
- You’re in negative equity
Exploring alternative lenders and mortgage products
Just because you were declined by one lender as you didn’t meet all their criteria, doesn’t mean you’ll be declined by all.
It might be that you need a specialist lender. For example, one that offers deals for remortgagers who are self-employed. Often specialist lenders don’t offer the most advantageous rates though. And each case is assessed on its own merit so there are no guarantees.
This is where a whole of market broker who understands the remortgaging market comes in. Once they’ve established why your application was declined, they’ll be able to search a wider range of deals as they aren’t tied to just one lender.
On balancing your current situation and future financial objectives with the most appropriate deals, they’ll make a recommendation. They’ll opt for the one that experience tells them is the most suitable deal for you.
