Declined mortgage

kittykat31

Hi all,

What happens if you get declined a mortgage? Would it have a huge affect on your credit score and how long would you have to wait before applying again?
TIA

muhandis

I guess it would depend on the reason for the decline. Could you elaborate on the reason for the decline (if known)?

If it's an adverse credit history, I would suggest going through a broker to assess your chances instead of doing trial and error by yourself.

kittykat31 wrote: »

Hi all,

What happens if you get declined a mortgage? Would it have a huge affect on your credit score and how long would you have to wait before applying again?
TIA

ACG

You can get declined one day and accepted the next by another lender.

I recall doing a cast 2 years ago where the customer was declined by a bank with one broker and then we got it accepted with the same bank 2 weeks later.

kittykat31

Our credit score isn't great still (5.6 years post bankruptcy) so if we were declined on that basis we wouldn't apply again for a year or so

kittykat31

Our affordability is good though and we have a deposit, with very little credit so wondering whether to take a chance and see if we get accepted as our tenancy is up for renewal soon and we are paying double for rent than we would on a mortgage

Autumnleaves15

I would definitely use a broker.

We used a broker last week when we saw a property we loved and decided to go for it even though we hadn't planned on buying right now.

My OH had a default and we got a mortgage sorted from start to finish in 3 working days with a high street lender and great interest rate.

The company we used is Habito and they're completely online based so no long interviews or trips to branches. Hopefully you can get some advice soon and get something in place.

DCFC79

Only you can see your score, lenders see your history.

jond240

@Autumnleaves15.

Do you mind me asking which high street lender it was that offered the mortgage?
And how old your OH default was and if it was settled?

Myself and my OH are in a similar position and looking to get back on the ladder.

Thrugelmir

kittykat31 wrote: »

Our affordability is good though

What criteria are you using? Borrowers are usually optimistic , lenders are required to be pessimistic. As current financial circumstances aren't the basis used.

Penguin666

Try Halifax or Aldermore -long as you have have kept up with your payments in last 3 years then you should be fine. Probably best using a broker though.

downhillfast

You haven't said whether you applied to a 'bankruptcy friendly' lender or even whether the lender may have a historical connection to you financially?
With bankruptcy still on your credit report you need to approach this methodically so you don't waste credit searches on lenders that are known to not suit your needs.
If you post more in depth details there may be a broker knocking around who can say whether there are likely lenders for you (they won't be able to tell you which but at least you'll have a better idea.)