What happens if mortgage refused?

Dominic1102

Hi

Me and my partner are looking to apply for our first mortgage but in the past our credit files have some little bumps in the road should we say.

We have met with an independent mortgage advisor who has said to apply and see if it gets accepted, she feels it should.

But should it be rejected is there a period of time you’d have to wait before applying again?

Also if rejected I can imagine it would damage a credit file but how bad and is the damage repairable?

Thanks

ACG

If you are declined with one lender it does not mean all lenders will decline you.

The outcome is not recorded on your credit report, but some lenders may ask if you have had an application declined so then it would need to be declared.

If you are declined, dont worry too much. But it is important to not make 3-4 applications in quick succession, but 2 for example should be fine for most people.

juniordoc

Have you had an offer accepted on a particular property or are you just applying for a mortgage in principle?

Dominic1102

Thanks for your replies.

It would only be a mortgage in principle to see what we could get to see what properties we could afford.

Thanks

ACG

You do not need a decision in principle for that - just the lenders affordability calculators.

juniordoc

So has the application for mortgage in principle already been submitted or not?
As above I would start looking at some properties first using online calculators to guide what you might be able to afford. It might take you 2 or 3 months to find a property you want.
In the meantime get a help to buy ISA, keep saving, don't take out any new credit and pay off any remaining debts you have.