Mortgage application declined? Here’s what to do
Being refused a mortgage or further advance can feel disheartening, but it doesn’t mean home ownership or releasing equity is impossible. Many people are declined because of adverse credit such as County Court Judgements or defaults , insufficient deposit, a high debt‑to‑income ratio or inconsistent income. Specialist lenders do exist, and with the right advice you may still be able to proceed.
Why an application may be declined
Credit history: CCJs and defaults stay on your credit report for six years and may put off high‑street lenders. Click here for how a mortgage broker can help.
Affordability: Lenders assess your income versus existing debts and may ask for a larger deposit if they deem the loan risky. Click here to read more about affordability on mortgages.
Property or paperwork: Unusual property types or missing documentation can trigger a refusal.
Practical next steps
Check your credit report and correct any errors before reapplying.
Reduce existing debts and avoid taking on new credit to improve your debt‑to‑income ratio.
Save for a bigger deposit if possible, as this can widen the choice of lenders.
Avoid multiple applications in quick succession as each search leaves a footprint on your credit file.
Speak with a specialist broker. We specialise in helping clients with adverse credit, and we work with lenders who consider a wider range of circumstances. Click here to go to our contact us page
How can we help
At Chris Smith & Sarah Tinkler Mortgages, we regularly assist clients who have been turned down by high‑street lenders. We’ll review your situation, explain your options, and if appropriate, match you with a lender who may consider your application. There’s no obligation to proceed, and your initial consultation is free.
Don’t let a declined application stop you. Book a free, no‑obligation consultation today using our contact form or call us on 07359 911 696. We’ll assess your circumstances and help you take the next step.
FAQ’s
Can I get a mortgage with bad credit?
Yes, it’s possible to get a mortgage even with bad credit, but your options will be more limited compared to someone with a good credit history and will depend on your individual circumstances, including the reasons behind your poor credit.
If your credit record isn’t perfect, there are still steps you can take to improve your chances of approval. Many people believe that having an IVA or a CCJ means you can’t ever buy a home, but that’s not necessarily true.
Give it time: Negative marks on your credit file can become less significant as time passes, especially if your financial situation has improved. With patience and consistency, most people can rebuild their credit score.
Consider your partner’s debt: If you’re buying with a partner, their credit history will also be taken into account, which can impact your application.
Be honest: Lenders carry out detailed credit checks, and trying to hide past issues can hurt your chances.
Explain your past issues: Lenders often want to understand why financial problems happened and what’s changed since then.
Work with a mortgage broker: Using a broker who specialises in bad credit cases can significantly improve your chances of finding the right lender and getting approved.
How do I know if I have bad credit?
Yes, you can get a mortgage with bad credit, although your options will be more limited than someone with a good credit history and will depend on your individual circumstances, including the reasons behind your poor credit.
If your credit record is less than perfect, there are still ways to improve your chances of being approved. Many people believe that having an IVA or a CCJ means you cannot get on the property ladder, but that is not always true.
Give it time: Negative marks on your credit file can become less important over time, especially if your financial situation has improved. With patience and consistency, most people can rebuild their credit score.
Consider your partner’s debt: If you are buying with a partner, their credit history will also be taken into account, which can affect your application.
Be honest: Lenders carry out detailed credit checks, and trying to hide past issues can make things worse.
Explain your past issues: Lenders often want to understand why financial problems happened and what has changed since then.
Work with a mortgage broker: Using a broker who specialises in bad credit cases can greatly improve your chances of finding the right lender and getting approved.
Should I buy a house with bad credit?
You may want to think about whether now is the right time to buy, or if it would be better to wait until your credit rating has improved. While it is technically possible to get a mortgage with a poor credit history, you could also focus on improving your credit score first to increase your chances of being accepted for a standard mortgage. However, you might be surprised to learn that:
You still have plenty of options even with bad credit. There are many specialist bad credit mortgages available.
You could own your home sooner than you think. With a bad credit mortgage, you could start your journey to homeownership much sooner, and in some cases, buying and moving in can take as little as six weeks.
Getting on the property ladder can make you more appealing to lenders in the future, whether you are applying for a new mortgage or another type of loan.