Mortgage Declined Help
Expert guidance after mortgage refusal—understand why and get approved
Why Mortgages Are Declined
Having your mortgage application declined is disappointing but far from uncommon. Understanding why your application was declined is the critical first step to getting approved. The most common reasons include affordability issues where your income doesn't meet lender criteria after stress testing or your debt-to-income ratio exceeds 40-50%, credit problems such as defaults, CCJs, missed payments in the last 3-6 years or low credit scores, employment concerns including probation periods, contractor status with insufficient history, or recent job changes, deposit source issues where funds are unexplained or insufficient, and property problems such as down-valuations, non-standard construction, or short leases.
After a decline, immediately request detailed written reasons from your lender (they must provide this under FCA regulations), don't make additional applications right away as each hard credit search further damages your score, and thoroughly review your credit reports from all three agencies—Experian, Equifax, and TransUnion—to understand exactly what the lender saw and identify any errors. Most importantly, don't panic or give up—a decline from one lender doesn't mean all lenders will decline. Different lenders have vastly different criteria and risk appetites. Some specialise in adverse credit, self-employed applicants, contractors, complex income structures, or non-standard properties. The key is being matched to the right lender for your specific circumstances, which is where specialist whole-of-market mortgage specialists excel.
Improving your position after decline typically involves waiting strategically (minimum 1 month, ideally 3-6 months) while addressing the specific issue: for credit problems, build 6-12 months of perfect payment history, reduce credit card balances below 25% of limits, register to vote, and correct any errors; for affordability, pay off expensive debts (every £100/month debt freed up supports £18,000-£25,000 more borrowing), increase your deposit, add a second applicant, or consider a cheaper property; for employment issues, complete probation periods, reach 12 months of contracting history, or stay in your job for 3-6+ months; for deposit source problems, keep funds in your account for 3-6 months showing clear savings history and obtain proper gift letters from family if applicable. Working with an experienced whole-of-market mortgage specialist is essential—they access 100+ lenders including specialists not available to the public, know which lenders accept your specific circumstances, and present your application optimally to maximise approval chances.
Steps After Decline
Get detailed decline reasons from lender—essential for addressing issues and improving next application
Access to 100+ lenders including specialists for adverse credit, self-employed, complex cases
Sometimes waiting 3-6 months while improving circumstances dramatically increases approval chances
Whole-of-market specialists know which lenders accept your specific circumstances—avoiding further declines
Expert Tips & Insights
Most common reasons mortgages are declined: Affordability—income insufficient after stress testing, high debt-to-income ratio over 40-50%, or existing commitments too high. Credit issues—defaults, CCJs, missed payments in last 3-6 years, bankruptcy/IVAs, or low credit score. Employment—probation period, contractor under 12 months, recent job change under 3 months, or unstable employment history. Deposit—source unclear, insufficient for chosen LTV, or large unexplained cash deposits. Property issues—down-valuation, non-standard construction, short lease under 70 years. Understanding your specific reason is crucial for next steps.
Steps after mortgage decline: Request detailed decline reason in writing (lenders must provide under FCA rules), don't make additional applications immediately (each hard search harms credit score further), review credit report thoroughly (Experian, Equifax, TransUnion—check for errors, understand what lender saw), gather all financial documents (payslips, bank statements, tax returns—identify any issues), speak to mortgage specialist not used initially (whole-of-market specialists access 100+ lenders vs single bank), and avoid: changing circumstances further (job, taking new credit, large purchases). Wait: minimum 1 month before reapplying, ideally 3-6 months while addressing issues. Multiple declines in short period make future applications much harder.
How to increase approval chances after decline: Credit score—pay everything on time 6-12 months, reduce credit card balances below 25% of limits, register to vote, correct any errors on credit report, avoid new credit applications. Affordability—pay off small debts (£3k credit card = supports £18k+ more borrowing), increase deposit (better LTV = better rates/approval), add second applicant/guarantor, reduce outgoings (cancel subscriptions, memberships), or increase income (second job, overtime, promotion). Employment—complete probation, reach 12 months contracting, stay in job 3-6+ months. Deposit—clear source documentation, keep funds in account 3-6 months, obtain proper gift letters from family. Property—choose different property, negotiate price after down-valuation.
When high-street banks decline, specialist lenders may approve: Adverse credit specialists—accept defaults, CCJs, bankruptcies (usually after 3+ years), missed payments, debt management plans. Criteria: larger deposits (15-40%), higher rates (5-10% vs 3.5-6%), but approval possible. Self-employed specialists—accept 1 year accounts (vs 2-3 for high street), use latest year only (if increasing), accept complex income structures. Contractor lenders—accept 6-12 months history, assess current contract only, understand contractor income patterns. Guarantor mortgage providers—100% mortgages with family guarantor. Non-standard construction specialists—accept ex-local authority, thatched, timber frame, steel frame properties. Use specialists to access—these lenders rarely deal with public directly.
If mortgage declined repeatedly, consider: Shared Ownership—buy 25-75% share, smaller deposit (5-10% of share), easier approval, rent on remainder. Rent-to-buy schemes—rent with portion going toward deposit/purchase, test property before buying. Guarantor mortgages—family member guarantees using their property/savings, 100% mortgages possible. Joint Borrower Sole Proprietor—family income boosts affordability, you own 100%. Save larger deposit—20-25% dramatically improves approval chances and rates, wait 12-18 months while saving. Improve credit score—6-12 months perfect payment history transforms applications. Consider cheaper property—lower LTV, easier affordability. Buy with partner/friend—combine incomes and deposits. Priority is not getting a mortgage NOW—it's getting the RIGHT mortgage without damaging future prospects.
Why specialists are essential after decline: Access to whole market—100+ lenders including specialists not available to public. Lender matching—know which lenders accept your circumstances (adverse credit, self-employed, complex cases), avoiding further damaging declines. Application expertise—present your case optimally, provide supporting letters, address lender concerns proactively. Save time—single application vs testing multiple lenders yourself. Often free—lender pays commission, no cost to you. Warning signs of bad specialists: guaranteed approval promises (impossible to guarantee), upfront fees before work done (legitimate specialists charge on completion or nothing), pressure to apply immediately, or limited lender panel (not whole-of-market). Check FCA register, read reviews.
Frequently Asked Questions
Don't Give Up—We Can Help
Our specialist mortgage advisers help clients get approved after declines every day. We'll understand why you were declined, access specialist lenders suited to your situation, and guide you to successful approval.