What is a “Risk appetite”?

M1981

Hello 

I was recently turned down for a mortgage due to “Risk Appetite” the mortgage company will not give any information as to why besides referring to this term. 

I’d never heard of it before and just need to get to the bottom of what went wrong.

 I have good Credit and permanent full time Job.

can anyone help me understand this, so I know what I need to fix?

Neutrinno

It could be a number of different reasons from high LTV combined with other factors, it could previous adverse, your income. Basically there is something with your situation that has made the lender not feel comfortable enough to lend.

Thrugelmir

Nothing for you to fix. Will be a commercial decision for that particularly lender. In that they have received applications for / underwritten a target quota of mortgages at a certain risk or price level. Funds are finite. 

John_

M1981 said:

Hello 

I was recently turned down for a mortgage due to “Risk Appetite” the mortgage company will not give any information as to why besides referring to this term. 

I’d never heard of it before and just need to get to the bottom of what went wrong.

 I have good Credit and permanent full time Job.

can anyone help me understand this, so I know what I need to fix?

It just refers to how much risk and if which type they are comfortable with. They may have already lent enough in a certain new development, or street, for example, and simply be full up on risk at the moment.