The Financial Conduct Authority made getting a mortgage more difficult than ever before. In the past, your mortgage application would probably be accepted after a few checks. Since the 2014 decision, it has become much more difficult to access this type of loan because of the increased chance of rejection. There are a few reasons why mortgage applications are likely to be rejected, most of which can be addressed by a mortgage broker before making your application.
The most common reason for mortgage rejection is bad credit. Most lenders will require you to have a minimum credit score in order to qualify for a mortgage. Before making a mortgage application, you should make sure to clear every pending payment that might affect your score. This includes County Court judgements, bad reports and declarations of bankruptcy. A good credit score will prove to lenders that you do pay back your loans. A mortgage broker will provide helpful information about the credit score requirements, helping to improve it and your chance of getting the mortgage.
Many applicants will have their application rejected because of having too many failed applications. With mortgages, the more you make unsuccessful applications, the less likely you will be able to access the loan. Lenders will consider your previously failed applications when making their decision, and it could affect your current and future mortgage applications. Since a mortgage broker will be more likely to have their application approved, it can be a better way to make your mortgage application after having a few failed attempts.
Lenders will consider your employment status and age before approving any mortgage request. Applicants are less likely to be awarded the loan if they are older than forty or are unemployed. Some people who may afford their mortgage repayments, such as self employed entrepreneurs, may still be locked out. if you can afford the loan but are self employed or aged over forty, you should consider using a mortgage broker as a proxy. By representing you, they will improve your ability to get the loan.
Administrative errors can affect your mortgage application. Accounting errors, spelling mistakes and cancellations on your mortgage application will reduce your chance of a successful application. Most borrowers overcome this by presenting their application as well as taking part in an interview, which will help lenders get to know their potential client. Hiring a mortgage broker will help save time and make the process more streamlined. They will help iron out any errors and make sure your application is more likely to succeed.
A few other factors can affect your application’s chances of success. If you are an active online gambler or have large unexplained expenses, lenders will flag and reject your application. Borrowers who are registered to vote stand a better chance because being listed in the national voter registry helps lenders pinpoint an authentic home address and identity. Most applicants do not know these important tips when they make their applications. A mortgage broker will provide this information, helping to boost your application.