Mortgage Declined. What now?

Turning_Fox

I have just been informed that my mortgage application to Nationwide has been rejected. 

   They cited a commercial supermarket on the ground floor, and the vacant building attached to the building, affecting the ‘saleability’, as the reasons that they would not loan on the property. 
    So, what do I do now?
   Also, has this affected my credit score, even though the reason for the decline wasn’t my finances?

penners324

Speak with a mortgage broker. They'll find the right mortgage 

K_S

@turning_fox

Hard-footprint credit check - I wouldn't worry too much about it. It might have a tiny impact for a week or two after the application but should not in most circumstances have any material impact on a further application.

Next steps - find a suitable lender (if any) through a broker or direct. Flats in commercial blocks can be a bit tricky especially when it's outside London and/or low-value. Plus there's always a bit of subjectivity involved, as you can see from the below excerpt from the Nationwide valuer's manual.

With Nationwide, if it's a 50-50 property I always use the pre-valuation check that they offer (at least to intermediaries, not sure about direct) to minimise the chances of wasted application due to a valuation decline.

Turning_Fox said:

I have just been informed that my mortgage application to Nationwide has been rejected. 

   They cited a commercial supermarket on the ground floor, and the vacant building attached to the building, affecting the ‘saleability’, as the reasons that they would not loan on the property. 
    So, what do I do now?
   Also, has this affected my credit score, even though the reason for the decline wasn’t my finances?

ACG

The credit check will have affected your score - but probably by very little. 
The decline wont have as that is not recorded on your credit report. 

What now? 
Well, you know that those 2 things are potential issues so you can try another lender and raise those things specifically before applying to see if they are within criteria - most likely the lender will say "down to surveyors comments" which leaves you in a difficult position do you make another application or do you pull out.

simon_or

A broker won't be able to guarantee an outcome, as valuers are an unpredictable bunch when it comes to properties close to commercial units (I have experience from buying flats in east London) but they'll definitely give you the best shot at getting a positive result. Mines always been able to get me a mortgage for these kind of properties, but that's all BTL, not residential.