Navigating Mortgage Declines: Seeking Clarity and Solutions When Lenders Don't Explain

Mortgage321MP

Hello everyone,

As a seasoned mortgage broker for the lat 35 years, I've encountered numerous instances where clients have faced mortgage declines without receiving a clear explanation from the lender. This can be a frustrating and disheartening experience, often leaving applicants in the dark about what went wrong and how to improve their chances in the future.

I'm starting this thread to open up a discussion on this topic. Whether you're a professional in the field, someone who has experienced this firsthand, or just have insights to share, your contributions are welcome!

Here are a few points to kickstart our discussion:

1. Personal Experiences: Have you or someone you know been declined for a mortgage without an explanation? Feel free to share your story. How did it impact your future applications or your perspective on the mortgage process?

2. Possible Reasons for Declines: While lenders might not always provide a reason, what are some common factors that could lead to a mortgage decline? This could include credit history, employment stability, debt-to-income ratio, etc.

3. Steps to Take After a Decline: If you've been declined and didn't get an explanation, what are the best steps to take? Should you contact the lender for more information, seek advice from a mortgage broker, or perhaps review your credit report?

4. Improving Transparency in Lending: How can the mortgage industry improve in terms of transparency? Are there policies that could be implemented to ensure applicants receive adequate feedback?

5. Advice for Future Applicants: For those preparing to apply for a mortgage, what advice would you give to minimize the chances of an unexplained decline?

This thread is meant to be a supportive space for sharing, learning, and helping each other navigate the often complicated world of mortgages. Looking forward to hearing your thoughts and insights!

JustMe18

Hi, i did ask on another thread, to you I will probably sound like a panicking buyer , but we did apply for a mortgage with Kent reliance on 23/12 , we had also AIP with them. The situation is that we had  2 defaults in October 2022, one £850 -settled 24/02/23, second £4500 - settled 21/01/23. Then apart from this, few British gas late payments and sometimes I use my overdraft of £400. Our affordability is very good though, we are taking £100k less than we needed and we have 10% deposit (or more if needed). So KR knew about defaults at AIP stage. So far had hard credit check on 23/12, then valuation 27/12 - all OK, mortgage adviser said affordability passed too. They keep asking some questions about those defaults, like to send checkmyfile copy etc, as they couldn't see it on experian. it's now been 3 weeks - I can't believe they can assess everything and then decline?  Never hidden any info. Also have current mortgage with Leeds for 7 years - never missed a payment. Do you think they are just checking and will issue offer or still can be declined for some reason? from your experience.