What happens if my mortgage application is declined?

If your mortgage application is declined it could be for a number of reasons. For example:

* A poor credit rating and/or a bad credit history.
* Inadequate income.
* Your inability to provide the required documentation.
* Some problem with the property you want to buy.

Either way you need to know what the problem is and be aware that your declined mortgage application will be recorded on your credit record.

If you make another mortgage application then, unless you can sort out the problem, it too will probably run into the same problems. So ask the mortgage company why they declined your application. (You will have to do this within 28 days of your application being refused.) If it's because you have a poor credit history, then you can see the details for yourself by contacting the credit reference agency the mortgage lender used and getting a copy of your credit report. Then you can see what their records show and if appropriate, taking steps to have all inaccuracies and out of date information removed.

If your mortgage application was declined because of other aspects such as your salary is not high enough, or because you are unable to provide a Guarantor - you will have to either: choose a cheaper property, raise more money for a deposit, or find another mortgage lender whose lending policy enables them to lend to you.

Either way, you need an experienced mortgage broker to advise you. Once they understand your problem they will know whether they can help and which mortgage lender to approach.