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What To Do If You’ve Been Declined For A Mortgage By Kensington Mortgages

Updated: May 25, 2021

Pete Mugleston
Author: Pete Mugleston Mortgage Advisor, MD

Kensington Mortgages are a specialist lender which means they have the flexibility to help customers that some banks and building societies can’t. So, if they’ve declined you for a mortgage or you think they’re going to, it’s all too easy to feel like you’re out of options.

Here’s the good news: Kensington isn’t the only specialist lender on the market, and others could well have an even more flexible criteria than them where your application is concerned. A rejection from any mortgage lender isn’t the end of the road, if you know how to find the right advice, and that’s where the expert brokers in our network come in.

Help is available! The brokers we work with could help you turn that rejection into a mortgage promise

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Why might Kensington reject a mortgage application?

1. Your bad credit is too severe

Kensington offers a range of bad credit mortgages and is known to offer lifelines to customers with things like debt management plans and satisfied defaults, but there are some adverse credit issues that usually trigger an outright rejection from the lender.

It might be the case that Kensington Mortgages offered you a decision in principle only to decline your application after their underwriting team took a closer look at your credit history. This could be because an issue that Kensington won’t accept – such as a bankruptcy or a default that’s less than two years old – showed up on your report.

We understand that being turned down by a specialist lender might make you feel that getting on the property ladder is impossible, but that’s simply untrue. There are brokers in our network who specialise in bad credit mortgages, and they help people with bankruptcies and defaults find lending options every day, even if they’ve been declined once before.

2. You don’t have enough deposit

At the time of writing, Kensington offers mortgages with a maximum loan to value (LTV) ratio of 90%, which means you’d need at least 10% deposit for approval. Any less than that, and they’re likely to decline your mortgage application, if they haven’t already.

Getting a mortgage with less than 10% deposit can be tricky, so we understand if you’re feeling less than positive about your prospects. But don’t give up just yet. Some of the brokers we work with are low deposit mortgage specialists, and they know exactly how to help people get a mortgage with just 5% deposit. There are a small minority of lenders still offering 95% LTV mortgages, as well as new options to explore such as the mortgage guarantee scheme, so you might have more product choice than you thought.

3. You need to declare benefit income

Benefits such as Universal Credit can sometimes be used to bulk up income on a mortgage application, declared alongside a main source of capital to help borrowers meet the affordability requirements. Some people rely on this flexibility, but Kensington don’t treat most types of benefit as declarable income and will reject applications that hinge on them.

They do allow customers to declare some types of benefit, such as Child Benefits and Industrial Injuries Disablement Benefit, but the likes of Universal Credit, working tax credits and Personal Independence Payments (PIP) cannot count towards a Kensington mortgage.

If you failed Kensington’s affordability assessment because you were relying on them accepting your benefits as supplemental income, don’t assume you can’t afford a mortgage full stop. There are lenders who treat these forms of benefit as declarable income, and even mortgage providers who consider applications where the income is primarily benefits.

4. Issues were found during the property survey

Kensington Mortgages is able to overlook some of the issues that might come up during the property survey as they can be flexible with certain types of non-standard construction. But others are a deal-breaker and could derail your application late into the process.

For instance, if asbestos or Japanese knotweed were found at the property, Kensington is unlikely to lend. Having a mortgage application collapse so close to the finish line can be upsetting, and we feel your pain if this has happened to you. There is a silver lining to all of this, though: it might be possible to revive your plans with a lender offering a better deal.

There are brokers in our network who specialise in getting mortgages approved for properties with issues that would usually put lenders off. They know exactly which lenders can be more flexible towards things like asbestos and  Japanese knotweed, exploring solutions and workarounds instead of hitting the borrower with an outright ‘no’.

5. There was an error on your application

Even the smallest error on mortgage paperwork can cause an application to break down at any stage in the process. If this has happened to you, try to treat it as an opportunity. Before you think about fixing the issue, take some time out to speak to a mortgage broker so you can double check that the Kensington product you’re applying for is the best one for you.

A mortgage broker can look into that Kensington deal and make sure it’s the best one on the market that you qualify for. If that’s the case, they can help you revive your original application and guide you through the paperwork to make sure it’s error-free next time.

Been declined by Kensington because of something else?

There are countless reasons why a mortgage application might fail to cross the finish line, so if you’ve been declined by Kensington for a reason other than those listed above, the brokers we work with could still help you. They help people overcome all kinds of issues on their way to homeownership, including ones most lenders consider insurmountable.

The circumstances surrounding your application aren’t important at this stage, as the brokers we work with don’t discriminate and will work tirelessly to help you get your mortgage plans back on track regardless of the reason Kensington wouldn’t lend to you.

Important

If you’ve been offered a mortgage in principle by Kensington Mortgages but are worried that your application might be rejected before completion, it’s not too late to take a pause for expert advice. The brokers we work with can tell you whether it’s best to stick with Kensington or consider an even better deal that’s on offer with another lender.

What to do if Kensington mortgages have rejected your application

If you’ve had a mortgage application declined by Kensington, here are the steps you should take to boost your chances of getting your home-buying plans back on track…

1. Don’t make another application just yet

Without professional guidance, there’s no guarantee that things will turn out any differently with another lender than they did with Kensington. Another rejection at this stage could be costly since too many requests for finance in a short period of time can negatively affect your credit report.

2. Find out why Kensington wouldn’t approve you

Some fact-finding can help you prepare for whatever deal-breaking issue Kensington found when you plan your next move. Download all of your credit reports so you can see exactly what the lender saw when they looked into your financial history. Make sure they’re fully up to date and challenge any information that isn’t current or fully accurate.

You should also try to get your hands on any reports that were carried out, but if you don’t have the time for this, no problem. Simply jump ahead to step three below.

3. Get matched with the right mortgage broker

If Kensington have declined you for a mortgage, it’s important to remember that your plans could still be salvageable. A mortgage broker with the right expertise can give you the best chance of reviving your application, either with Kensington or a different lender.

We offer a free broker-matching service that will pair you with a mortgage specialist who is best positioned to help you. This will be an expert we’ve handpicked because of their track record offering lifelines to customers who’ve been declined by specialist lenders.

Help is available! The brokers we work with could help you turn that rejection into a mortgage promise

  • Check mark Whole of market mortgage experts
  • Check mark FCA regulated
  • Check mark Rated 5 stars on Feefo
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FAQs

Will Kensington reject my mortgage application if I’m self-employed?

No, they won’t reject you outright on these grounds. Kensington offer a range of self-employed mortgages and you only need to have been self-employed for one year to qualify for them, assuming you meet the rest of the lending criteria.

They will, however, reject self-employed mortgage applicants under specific circumstances. For instance, if you have declining profits or made a loss in the last year, they are likely to turn you away. But keep in mind that a mortgage broker who specialises in self-employed customers could find lending options for you, regardless of your profits dipping.

Do Kensington offer limited company buy-to-let mortgages?

Yes. Kensington Mortgages offer buy-to-let mortgages to limited company borrowers and will also consider applications where the company is a special purpose vehicle (SPV), as long as all of the shareholders are able to provide personal guarantees.

They do apply some caveats here, though. For example, if the application is from a trading limited company it will be rejected outright. If you’ve encountered any restrictions like this, it’s worth speaking to a broker who specialises in limited company buy-to-let mortgages.

Do Kensington Mortgages offer fee refunds after a rejection?

If you think there are grounds to appeal for a refund of any upfront fees you paid to Kensington Mortgages, speak to a mortgage broker. They can tell you whether your appeal is likely to be successful and will advise you on the best way to go about it.

If it turns out that said fees are non-refundable, your broker will factor this into the overall cost of re-applying with Kensington compared to taking your business elsewhere.

If you’ve been declined by Kensington, we’re a great fit! Here’s why…

A mortgage broker with the right knowledge and expertise to help you can boost your chances of reviving that mortgage application, whether that’s through re-negotiation with Kensington or finding you a new lender who’s a better fit for your plans.

Mortgage advisors tend to specialise in different areas and different types of customer, so it’s vitally important that you find one who’s a perfect match for your case.

This is where we come in. We offer a free broker-matching service that will make sure you’re paired up with the right expert for your needs and circumstances. In this case, it will be an advisor with a track record of helping customers who’ve been declined by a specialist lender and someone who specialises in solving whatever issue stopped you getting a mortgage.

Call 0808 189 2301 or make an enquiry online and we’ll arrange a free, no-obligation chat between you and your perfect broker today. And, don’t worry, this won’t leave any marks on your credit report.

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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