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Top Mortgage Hunters That Assume They Won’t Ever Qualify – But Could!


By Pete Mugleston

Published: 2nd May 2018 Last updated: 9th September 2020

Online Mortgage Advisor connects customers with specialist advisors who have the right experience helping people who have been in similar circumstances. With its experience of working with people who may have previously been declined or faced difficulties, and to encourage more consumers to consider getting on the ladder, Online Mortgage Advisor has identified five audiences that represent some of the most common situations.

These typologies may assume they won’t ever qualify for a mortgage – but actually could.

The flexi crowd:

  • You might be a blogger writing about the things you’re most passionate about or someone taking full advantage of the growing gig-economy and working for a number of employers to maximise income and flexibility.
  • Self-employed and working autonomously, you love what you do and after taking the leap to go it alone, you’ve never looked back.
  • Annually you earn the same, or more than what you did as an employee, however, your income varies from month-to-month.
  • You may also be relatively new to self-employment but your lender has asked for two or three years’ worth of accounts.
  • Unfortunately, this variable income and being new to self-employment, falls outside of the majority of lenders’ criteria.

The knock-on effect:

Being worried about applying for a mortgage and assuming it’s out of reach may result in an unnecessary delay onto the property market. This could mean that you take out a mortgage that stretches past your desired term, which could encroach on your long-term life plan.

A delay could also mean that property prices increase making it harder to buy. Meanwhile the money being spent on rent could have been used to pay a mortgage off.

In the interim, with the money being spent on rent rather than longer-term investment, it could have an impact on building a more financially stable future.

Read more on how to get a mortgage with one year of self-employed accounts.

The maternity leavers:

  • A new parent enjoying a new addition to the family has meant some time out of work to enjoy a period of maternity/paternity leave.
  • While the plan has always been to return to work after six to 12 months, halfway through parental leave you need to remortgage, or decide you need more space and therefore a new home.
  • Lenders have asked to see the last three months’ worth of pay slips but earnings show that the family has been receiving statutory maternity payment of £140.98 a week.
  • Despite maternity leave being short term, many lenders may only consider the application when you’re back at work.

The knock-on effect:

The knock-on effect of being declined a mortgage in this situation could have a huge impact on one family. It may be that their children aren’t able to attend the school they want, they may need to consider downsizing to the location instead to buy some time until they return to work, or it could mean that they miss out on a dream home.

Read more about getting a mortgage on maternity leave here.

The globe trotters:

  • Globalisation is becoming a part of everyday life. People live and work all over the world and so they should!
  • You’re returning home from a stint abroad and looking for a new home to invest your earnings in.
  • However, despite having the means to buy a place to call home, because of your travels there is insufficient detail available relating to your personal history such as property addresses, employment and credit rating.
  • This lack of information could deter lenders from progressing with an application.

The knock-on effect:

Unable to inject your earnings into a property at a particular time could mean you miss out on a lucrative investment opportunity, or your dream home.

Turning to rental living could also have a longer-term effect on your financials.

The entrepreneurs:

  • Having successfully worked hard to secure a year or two of growth, the business looks in good shape.
  • Despite being able to demonstrate that the business remains profitable the decision to reinvest into the business and not extract profits as earnings has meant that the total amount paid out in salary and dividends is lower.
  • The result means that, while investment to grow was the right decision for the business, it has had an adverse effect on a mortgage application for the business owner.

The knock-on effect:

The effect of this situation could mean that an applicant is granted a much smaller mortgage, which could significantly impact the size and value of the house he/she wants to purchase, and ultimately meaning they have to move again sooner than they would like.

Having to wait for another year’s worth of accounts to increase the average income, could also mean missing out on a dream home or not putting more money into growing the business.

Find out more about mortgages for business owners here.

The financially unfortunate:

  • A joint mortgage with an ex-partner and a poor credit history is preventing you from leaving.
  • The situation of poor credit could be down to health reasons that have prevented you from working and the right insurance not being put in place, or perhaps you were made redundant in a recession; there are many reasons why people might have adverse credit.
  • Despite being a savvy consumer and very careful with money, a poor credit history has shown up on a check.
  • Lenders have declined an application due to credit issues.

The knock-on effect:

Not being able to move out of a co-owned property with an ex-partner could cause huge personal difficulties. Financial barriers may be forcing you to have to continue living together if neither of the parties can buy one another out.

For more info on getting a mortgage with bad credit, click here.

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