How To Get A Mortgage If Leeds Building Society Declines You

In this article, we’ll explain what steps you can take if Leeds Building Society has declined your application, why this might have happened and how a broker can help secure the mortgage you need.

Are Leeds Building Society a strict mortgage lender?

Leeds Building Society has just as strict mortgage lending criteria as most other high-street lenders. While they might be willing to overlook some minor forms of bad credit, they usually reject customers with more severe issues, such as unsatisfied defaults and debt management plans, on the spot.

They can also be tough on customers who are self-employed with less than two years of accounts and those with non-traditional deposit sources.

How long does it take to approve a mortgage?

Between three to six weeks, depending on the complexity of the application.

If it’s a straightforward, standard application with no adverse credit, sufficient disposable income, and a healthy deposit, then Leeds, like all other large mortgage lenders, would look to complete its process towards the lower end of this timescale.

What to do if you’ve been declined for a mortgage by Leeds Building Society

If you’ve had a mortgage declined by Leeds Building Society or think you’re about to be, here are the steps to give yourself the best chance of salvaging your plans.

Don’t make another application just yet.

So many people make the mistake of rushing out to another lender to get a better outcome the second time. Still, if you don’t know the market inside out, there’s no guarantee that things will be any different than they were on this occasion.

By rushing into a second application straight away, you’d be running the risk of another rejection. Too many finance applications over such a short period can negatively impact your credit report. This might further your plans by jeopardising any future mortgage applications. Also, remember that the associated costs of starting an application with another lender at the wrong time could be quite high.

Gather all of the facts

If Leeds Building Society wouldn’t approve you, find out exactly why so you can explore a workaround solution armed with all of the facts. Request a copy of any reports they had carried out and download all of your credit files so you can see any issues first-hand and have any outdated information corrected. A broker can help you optimise your credit report for next time.

If you’re short on time or unable to obtain the relevant documents, skip ahead to step three.

Speak to a mortgage broker

A broker is your best defence against mortgage rejection, as their advice could be the difference between another rejection and mortgage approval. The right broker will know how to re-negotiate with Leeds Building Society on your behalf, and if there are no grounds for appeal, they might even be able to find you another lender who is more likely to approve you.

We offer a broker-matching service that will pair you up with the best-positioned broker to help you overcome whatever issue stops you from getting a mortgage. This specialist advisor will be one we’ve vetted ourselves. Simply make an enquiry, and we’ll do the rest.

Can you appeal the decision?

Yes, you can usually appeal straight away. You can normally do this either online or via email to the appropriate department (this information is typically found on the lender’s website, with instructions as to how to follow the correct procedure).

It’s probably best to wait until you have all the details about why this happened and then consider your options before appealing.

Get expert advice immediately if…

• You have any form of bad credit
• You are self-employed and have one year’s accounts
• You are purchasing an unusual property or a non-standard construction property
• You are using a ‘non-standard’ deposit source
• You are using supplemental income sources, including benefits
• You have already been declined for a mortgage elsewhere

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Common reasons why Leeds Building Society reject mortgage applications

There’s an issue with your credit report

Leeds Building Society does offer bad credit mortgages for customers with a range of credit issues, but, as is the case with all other mortgage lenders, there are types of bad credit that they will not consider. For example, customers with unsatisfied defaults, debt management plans and county court judgements (CCJs) are usually rejected on the spot.

You’re self-employed and want to borrow based on your accounts from last year.

If you’ve been self-employed for at least 24 months and have evidence of your income over that period, there’s no reason why Leeds Building Society won’t at least consider you for a mortgage.

However, issues may arise if you want your affordability assessment to be based solely on your latest year’s accounts. Maybe you only have one year’s trading under your belt, or perhaps you had an exceptional last 12 months but struggled the year before. Either way, Leeds Building Society isn’t the lender for you if you want to borrow based solely on your latest year of trading.

There’s an issue with the valuation, or you’re buying a specific property type.

Some aspiring homebuyers have found that Leeds Building Society offered them a decision in principle (AIP) but ultimately rejected their application regarding the full mortgage offer stage. Sometimes, this is because the lender’s survey results suggest the property is worth less than the buyer is paying. Still, it might also be because a building type that falls outside Leeds Building Society’s lending criteria has been found.

They usually reject mortgage applications on properties constructed using British Iron & Steel Federation, wholly timbered construction, or non-repaired prefabricated reinforced concrete.

The lender is wary of your deposit source.

One of the reasons why Leeds Building Society might decline your mortgage application early on is because they’re uncomfortable with the source of your deposit. This is something you’ll need to provide evidence for to get an agreement in principle. While Leeds Building Society is happy with many more traditional deposit sources, it is not keen on unsecured loans or gifted deposits (unless they’re from an immediate family member) and overseas capital from outside the European Union and European Economic Area.

Your income is made up primarily of benefits.

Many people on benefits such as Universal Credit have other capital to declare on a mortgage application. With some mortgage lenders, the total amount they receive across all their income sources is enough to get them onto the property ladder. Under the right circumstances, it’s even possible to get a mortgage with an income made up primarily of benefits.

Unfortunately, Leeds Building Society doesn’t consider applications where benefits are listed as the primary income source.

Other reasons

There are countless other reasons why this particular lender might decline you for a mortgage, such as:

• You’re currently employed on a zero-hours contract
• You’ve submitted a mortgage application with a guarantor
• Proof of earnings is from stipend income
• You’re a professional landlord
• The source of the deposit was from cryptocurrency/bitcoin

Whatever problem is blocking your path to the property ladder, we can match you with a broker who can help you overcome it, whether through re-negotiations with Leeds Building Society or starting afresh with a new mortgage lender offering a better deal.

How long does it take to re-apply for a mortgage?

This all depends on why Leeds initially declined you. If, for example, you have severe adverse credit on your record or you currently work on a zero-hours employment contract, then these issues may not be simple to rectify.

But if it’s something quite straightforward or specific to this lender’s criteria, you may want to consider re-applying immediately.

Once you know why your application was rejected, you can take steps to resolve these issues thoroughly. When this has been done, with the help of a mortgage broker, your new application should hopefully take as long as is standard to process and get the approval you need.

How Online Mortgage Advisor can help

We offer a broker-matching service to ensure you’re paired with the best expert for your needs and circumstances. The advisor we match you with can check whether there are grounds to appeal against Leeds Building Society’s decision and re-negotiate with them for you if that’s the best option. But you might even find they can get you a better mortgage elsewhere.

Call 0330 818 7026 or make an enquiry online, and we’ll arrange a no-obligation chat between you and your ideal mortgage advisor today.