Applications - in reality how often are people turned down?

Katiedoula

Hi everyone
Just a musing... (whilst I very impatiently wait for my application to be assessed by Skipton)
Obviously a lot of people are slightly anxious on here, and I have done a lot of googling "likely hood of decision in principle not getting approved at application"
Such a mixed bag of results and of course, it depends on individual circumstances.
I just wonder though.... does it happen often, mortgages being turned down after having decision in principle?
There is part of me that thinks it seems to be incredibly difficult to get a mortgage (from here and googling) but surely it must be possible for people still.
I wonder what the "success rate" is
As a side issue, my broker got my decision in principle for me approved (with complex history), application submitted, valuation has been done and just waiting now.... like I said, very impatiently 😂

dunstonh

I just wonder though.... does it happen often, mortgages being turned down after having decision in principle?

yes.

There is part of me that thinks it seems to be incredibly difficult to get a mortgage (from here and googling) but surely it must be possible for people still.

It is only difficult if you are pushing limits. If you are pushing limits, then you are more likely to have an issue if you dont use a mortgage broker as the broker would likely have already filtered out the lenders known to be picky or have an issue in that area. You wouldnt have the knowledge or information to do the same. However, if you are not pushing limits and your property is standard and in good condition and you can back up everything declared, then you should be fine once you have the DIP.

kingstreet

Our (and most brokers') decline rates will be very low.

This is because we will carry out a careful analysis of all the data and documents and ensure everything meets the lender's criteria before we submit the application.

somethingcorporate

kingstreet wrote: »

Our (and most brokers') decline rates will be very low.

This is because we will carry out a careful analysis of all the data and documents and ensure everything meets the lender's criteria before we submit the application.

Can you put a rough estimate on very low?


I've no idea what this would look like, nor would I know what the general application decline would look like but would be interesting stats for comparison.

kingstreet

As an example, in the last three months we have had one application out of about ninety which had to be re-placed with another lender. That was for a contractor and there was a minor contract issue the first lender made a deal-breaker.