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Declined Mortgages

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 10th September 2019 *

If your mortgage has been declined, there are many different actions you can take to understand why it was rejected and how to improve your chances for next time. 

When you apply for a mortgage, applications are assessed based on the lending criteria, and these specifics will vary from lender-to-lender.

So, just because your application was rejected by one lender, this doesn’t mean that it will happen with another. 

Because the criteria will vary between lenders it’s worth looking around to find the best deal for your circumstances, and the experts we work with can assist you with this.

In the meantime, we’ve put together this article where we focus on the various reasons why a UK mortgage may have been declined. 

In this article, we’ll be looking at the following: 

The specialist mortgage brokers we work with have ‘whole-of-market’ access – this is a database of different lenders that brokers use to find deals tailored for you.

This exclusive access also means that they’re able to source deals that aren’t available to the public, so even if you’ve had your mortgage rejected, you may be in luck. 

Call us on 0808 189 2301 or make an enquiry, and we’ll be in touch shortly. 

We’ll find the perfect mortgage expert for you - for free

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My mortgage has been declined: what do I do next?

There will be an infinite number of reasons as to why your mortgage application has been declined, though most of the time it’ll be because the lender wasn’t happy about a few specific things, including: 

  • You have missed or late payments on your file
  • Any defaults or CCJs in the past 6 years 
  • Too many debts, and payday loans will be scrutinised even harder 
  • Not registered to vote on the electoral roll
  • Too many credit applications made in a short space of time (especially within a six-month period) 
  • Being self-employed or a contractor and not able to show consistent income 
  • You didn’t pass their affordability assessment 
  • The type of mortgage you applied for was wrong for your circumstances/preferences 

Getting declined a mortgage in principle usually means that the minimum criteria hasn’t been met – and you can find out some of the potential reasons why in the section below. 

Thankfully, every lender has a different policy on what is and isn’t acceptable, and many specialise in certain areas, so just because one lender has turned you down previously, doesn’t mean there isn’t a lender out there for you. 

To boost your chances of getting a better mortgage next time, speak with an expert.

What can I do if I’m declined a mortgage in principle?

If you’ve had a mortgage in pre-approval then declined, then this is usually because you haven’t passed the lender’s internal credit score.

Every lender uses its own scoring system to interpret every factor of the application and has its own ‘pass mark’ that they require applicants to achieve in order to be approved.

There may be a whole range of reasons you’ve not met their minimum lending criteria to get a mortgage in principle that may be acceptable with other lenders, for example:

  • Recent bad credit events
  • Having a high loan-to-value (LTV)
  • Having a high loan-to-income (LTI)
  • You’ve not been employed for long enough 
  • You don’t have a long enough address history (at least three years in many cases) 
  • You haven’t registered on the electoral roll at your current address 
  • Your deposit has come from a gift and not from savings, or you haven’t contributed any funds to even partially match the gifted deposit
  • Lying on your application (in the most serious of cases, you could even be committing fraud)

Thankfully, if you’ve had a declined mortgage in principle for any of these reasons and more, you still have other options. 

Many of the specialist lenders will have more flexible rules when it comes to something fundamental holding the approval back, and some even have no credit score system at all – they assess each case manually. 

By enquiring here, we will match you with an expert who has experience with declined agreement in principal queries. 

Why was my mortgage was agreed in principle, then declined?

If you’ve been refused a mortgage after an initial agreement in principle, the outlook is usually far better than if you’ve never been approved.

Often the reason for a full mortgage decline is because your lender is inflexible with certain specifics, or your broker has not done their homework before submitting your application and you have ended up applying with the wrong lender that would never have approved the mortgage in the first place.

Typically, mortgages declined on full application can be rescued if your broker knows what they are doing. 

Why have I been accepted then declined?

Usually being denied a mortgage after pre-approval will be for one of two reasons:

  1. Adverse Credit

    If a lender has taken a deeper look at your application and has picked up undisclosed adverse credit information, this may be one of the reasons why you were denied after the application in principle stage. 

    Lenders can be strict with non-disclosure because it can appear as though the borrower is lying in order to make their application stand out.  

    Bad mortgage brokers won’t do their research before sending off an application to a lender in the hope that the lender won’t find any issues. Good brokers, on the other hand, do their homework and find a lender who will accept adversities. They understand that if the adverse is not disclosed, when the lender finds them, the application will be declined when it would have been approved had the issues been disclosed from the outset. Adverse issues can be overcome because there are lenders who are happy to consider a whole range of adverse credit events, including recent late payments, defaults, CCJ’s, and even repossessions and bankruptcies.

  2. You didn't meet their policy criteria

    On review, some mortgage underwriters will decline an application because of their policy. This may be because you haven't been in your job long enough, or perhaps they are not happy with recent use of payday loans, for example. 

    If you’ve been declined simply based on a policy reason, this is usually good news because it means you were deemed creditworthy and passed the initial credit scoring system, but then had the mortgage declined at the full application stage for some other specific criteria that many other lenders may be happy with.

What can I do after I’ve been declined at this stage?

Firstly, you need to establish what went wrong. This can sometimes be done by talking with the lender and asking them for more information. They may not tell you the exact reason if it's due to a credit issue, as data protection laws often restrict their access to that information. Instead, they’ll advise you to check your credit reports or hide behind the excuse of ‘not met credit score’.

That said, it’s always an idea for you and your broker to push them on it, because if there was a policy reason (i.e. not happy with length of time in a job or deposit source), it’s often something another lender would be happy with.  

If you’re struggling to get feedback from the lender, don’t worry. The specialists we work with can often tell you why your mortgage was declined after an application in principle without even talking to the lenders. You can even get a comprehensive credit check for free, and it won’t affect your credit rating. 

Make an enquiry to get started. 

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Mortgage declined by underwriter

If you’ve had an agreement in principle with a lender already approved but then your full mortgage application was rejected at the underwriting stage, it’s likely that the lender’s UK underwriters were not happy with either:

  • Something undisclosed in your credit history,
  • Something on the application form,
  • Documents you’ve supplied not being acceptable,
  • Income used not being acceptable,
  • The feasibility / reason for the mortgage,
  • Their attitude toward how risky the case is overall.

It’s important to remember that every lender is different. Underwriters exist to decide if you are a ‘good risk’ and will generally look to lend money where this is within reason. However, they are limited to the policy guidelines of the lender they work for, and it’s rare that underwriters are given a mandate to consider cases that fall too far away from the lenders’ core business.

This can bring about some interesting and often puzzling decisions where it’s apparent the customer is creditworthy, but certain rules in the policy say otherwise and the mortgage is rejected.

For instance, it might seem fine to lend £100,000 to a self-employed borrower of one year earning £1 million, but if the lending policy requires applicants to have 2- or 3-years trading, the case would likely be declined.

There’s a lender out there for almost every buyer – the trick is knowing where to look and how to package the application in the right way to give underwriters the opportunity to approve the case. Luckily for you, the expert brokers we work with can do this. 

Make an enquiry today and we’ll match you with an experienced broker who can aid your application. 

Appealing a declined mortgage

Unfortunately for many borrowers, appealing a mortgage that has been declined by an underwriter is often futile.

Without good reason or any further evidence to support a positive decision that wasn’t known at the point of review, the underwriters will very rarely overturn negative decisions. Instead, it might be a better idea to seek an alternative lender with a slightly different policy who is likely to take a different view on the reasons for decline.

The experts we work with can find such lenders using their whole-of-market access. Start today by making an enquiry

Mortgage refused after valuation

If your mortgage has been declined after a property survey, it’s likely to be because something on the valuation report has either down-valued the property or flagged up concerns that make the lender question it’s suitability as security.

Properties can be deemed unsuitable if the construction and material type is not within the lender’s policy, or because it is not structurally sound and needs significant repair work before it’s habitable.

Down-valuations are hard to do anything about, without specific comparable properties of a similar construction that have sold recently in the area.

Properties that aren’t considered an acceptable construction type with one lender may still be acceptable with another – again, it’s always best to check with the lender before making an application if you think the property may not be suitable to avoid last-minute mortgage declines and incurring significant valuation fees. 

To do this, make an enquiry. The brokers we work with can check to see which lenders may accept a property that doesn’t fit within a conventional category. 

Mortgage declined after exchange of contracts

Having a mortgage fall through after exchanging contracts is extremely rare, though it can sometimes happen. The good news is that there are still lenders who can offer a mortgage after being declined late on in the process.

There may be many reasons why a lender would decide to refuse at this state in your application, though at this point they would already be happy with the income, deposit, credit score and property, and usually the reason for decline is due to some historical adverse credit.

By rights, your advisor should be making everything apparent to the lender before you even make the application, followed by a thorough credit search to make sure that nothing has been disclosed. So, if you have any adverse credit the lender should know about it already and there should be no unexpected surprises.

Sometimes, however, if the adverse credit was not disclosed from the outset, it can be that it isn't picked up on the credit search (such as IVAs, bankruptcy etc.), which can happen if the lender predominantly uses Experian and the credit issues only show on the Equifax report. If these credit issues come to light and are outside of the lender's policy, then they are within their rights to withdraw any formal offer to lend, which can be after exchange of contracts.

Make an enquiry – the advisors we work with arrange mortgages that have been declined previously.

Mortgage declined at the last minute

It shouldn’t get to the stage where you’re ready to exchange contracts and complete on a purchase before it becomes apparent your mortgage is not ready. Sadly, this happens more than you might think, though you can take action to address the issue straight away. 

If you need an express mortgage service, make an enquiry and type ‘EXPRESS’ in the comment field. 

Mortgage declined after a full offer was made

Lenders have the right to decline any mortgage application up until the point of completion, even after a full offer was made. This tends to happen if you don’t meet the lending criteria, or they find an error in your application (for example incorrect income, address history etc.). It could also be due to adverse credit that wasn’t disclosed at the start of the application. 

By speaking with a broker, they can look at the reasons why you were refused and work to find a better deal. 

My mortgage was refused due to a low credit score: What do I do?

If you’ve had a mortgage declined due to a low credit score, that doesn’t mean that you can’t get a mortgage from another lender.

Low scores are caused by a whole number of things, not just bad credit events on your file. There are even specialist lenders who don’t use scoring systems, so you’ll be far more likely to find a better deal with them.

These are some of the most common enquiries we come across when it comes to low credit scores, all of which are perfectly acceptable by lenders in the market.

Being declined a mortgage for...

  • Not being on the electoral roll
  • Being in your overdraft 
  • Having a high level of borrowing
  • Only starting a new job recently
  • Having a small deposit
  • Having a high-risk job (such as roofers, truck drivers, farmers etc.). 

The brokers we work with can guide you through your credit history and where you can improve – and it’s completely free.

Make an enquiry to get started. 

What to do if your mortgage is refused due to bad credit

If you’ve been refused a mortgage based on bad credit, the good news is that there are lenders available who would accept the following from potential buyers:  

If you do have a history of poor credit, you’ll need to define exactly what these factors are before trying to find a mortgage lender to consider your application.

By working with an advisor, they can use their extensive list of contacts to find more flexible lenders. The expert you work with will need to know: 

  • How many late payments/defaults/CCJs you have
  • If you’ve had a bankruptcy
  • The exact dates of a registration or discharge, and the sum involved
  • If you’re in a debt management plan, including when it started, how much you owe, which creditors are involved, and what your conduct on the plan has been. 

How can I improve my credit?

To see where you need to improve, it’s worth understanding how your credit report works. Your credit score is compiled by credit referencing agencies (CRAs), and the three main agencies in the UK are Experian, Equifax and Callcredit.

Because lenders report to different CRAs, your scores may be slightly different, so it’s a good idea to check that they all match up. For a better overview of your credit, Check My File compiles your credit reports into one easy-to-read breakdown. You can get a one-month free trial (£14.99 per month on wards), however, we can do this for you for free at any time. 

Make an enquiry today and start improving your credit in time for your next application, or to find a lender who can approve you. 

Get your credit rating


Will a declined mortgage affect my credit?

Unfortunately, if you’ve applied for a mortgage only for it to be rejected by a lender, a hard credit search would have been made against you and it will stay on your record for 12 months. 

Also, multiple hard credit searches within a short space of time could also affect you negatively, so if you apply for another mortgage without preparing yourself adequately or not addressing any outstanding issues could leave you with another rejection and possible wasted application fees.

Declined mortgages only tend to happen if the broker you were working with didn’t properly prepare your application before submission, as a good broker would be able to spot any potential issues or factors that wouldn’t meet the lending criteria and work with you to boost your application. 

While you can apply for another mortgage after you’ve been declined, it might be worth your while to take your time and identify any factors that you can improve. Lenders will also be more favourable to rejected applicants if they wait three months before applying again.

What to do if your mortgage is declined due to income and affordability

‘Acceptable’ forms of income can be a fluid concept and is completely different depending which lender you pick. 

Some lenders won’t give any leeway on one factor, but may completely ignore another; some calculate averages, some use absolute figures; some require a long working history and a permanent contract, others will lend to people in probationary periods or even based on a future contract you haven’t started yet. 

If your income is made up of multiple streams, is unique, or is ‘out of the norm’, you may need to work with a specialist broker with expertise in this area. 

Affordability wise, mortgage lenders all use their own systems to establish feasible maximum borrowing levels. Some are old-school and work from income multiple calculations, simply taking your annual salary and multiplying it by 3, 4 or 5. Others will approach it by calculating what’s affordable month-to-month and factor in rate increases as a ‘stress test’.

In general, mortgage lending is capped at around 4x annual income with a few specific lenders stretching up to 5x. 

Occasionally, this can be increased over 5x on a case-by-case discretionary basis for those with higher incomes and large loans. For this reason, selecting the right lender can make a huge difference to the maximum you can borrow.

By working with an experienced broker, they can assess your affordability to see which lenders would be best suited for you. 

Example of commission and affordability

A salesman on a basic salary of £20k and annual commissions of £60k earns £80k a year, but in trying to borrow as much as possible he finds that many lenders only accept 50% of his commission.

Let’s say lender A is one of these, and therefore considers him to have a £50k annual income. To help with the search, he approaches a decent broker who tells him that some lenders are more generous and accept 80% of commission (some may even go higher than this), and so lender B would consider income to be £68,000.

If both lenders offer up to 5x income, then the maximum borrowing with lender A would be £250k, but lender B would go up to £340k – a big difference, especially if you live in an area with higher house prices. 

I’m self-employed and was refused a mortgage, what can I do?

Self-employed borrowers have had it tough when it comes to borrowing since the old Financial Services Authority put a stop to self-cert mortgages, and with the market review changes in April 2014, lender criteria has tightened. 

However, this has created gaps in the market that certain specialist lenders have been quick to fill, and some are very accommodating to self-employed buyers, offering mortgages and secured loans to those declined high street mortgages. 

There are lenders that are happy to offer mortgages even in the following circumstances:

  • One year’s self-employment
  • Make a financial loss over the past three years
  • Declining trend in profits
  • Lending based on net profit / retained profits not drawn (when a Ltd company)
  • Lending based on salary plus dividends (when a Ltd company)
  • Self-employed with bad credit
  • Self-employed on help-to-buy or with small amount of deposit

For more advice, speak with a mortgage advisor

What to do if you’re purchasing your first home and your mortgage is refused

It's rare that mortgages are declined specifically because the applicant is a first-time buyer. A refusal in these circumstances is usually down to something else the lender isn't happy about, such as bad credit or affordability.

Occasionally, some lenders will place additional requirements on borrowers who have never owned a property before, for instance certain high street lenders will stipulate that all first-time buyers must have a minimum annual income of £20,000, and some specialist lenders who consider adverse credit for first-time buyers demand a higher income than that to try and offset some of the additional risk associated with lending to them.

First-time buyer, buy-to-let mortgages are a unique mortgage proposition and often come with certain specific criteria that first-time buyers have to meet in order to gain approval. This is largely in part to the recent crackdown on buyers taking buy-to-let (BTL) mortgages on a property they intend to live in, when they cannot afford their own residential deal.

First-time buyers looking to get a buy-to-let mortgage will need to prove they can afford the loan as if it were a residential. They are also tested for further feasibility in more depth than homeowners and experienced landlords, because lenders may be concerned as to why someone would buy for an investment and continue to pay rent on their own residence.

What to do if your buy-to-let mortgage application is rejected

Buy-to-let borrowing has also tightened up since self-employed self-cert mortgages disappeared, and since the market review changes in April 2014.

This is down to a mix of changes in regulation and an increase in fraudulent ‘back-door buy-to-let’ applications. This is because applications are based on rental income and not personal income, so buyers who were unable to afford a mortgage on their personal income would lie under the guise of renting the property out, but then moving into it themselves. 

As such, lenders have clamped down on this, and customers who are considered a likely risk of committing fraud in this way are required to prove income as if the mortgage were a residential deal.

That said, there are lenders who can offer unique buy-to-let deals. As such, it may be possible to obtain a buy-to-let mortgage with the following criteria:

  • No personal income at all (experienced landlords only)
  • No minimum income limit (new and existing landlords only need an income, regardless of size)
  • First-time buyer BTL (never owned a property but buying a rental)
  • Bad credit BTL (wide range of adverse credit accepted)
  • Self-employed BTL (BTL mortgage with as per self-employed circumstances explained above)

Mortgage refused after gambling

The fact that you like to gamble may not necessarily be the sole reason why a lender rejects your application – that will depend on the type of gambling you indulge in, the severity of your habits, whether you’re a professional gambler or just gamble recreationally, and the mortgage lending criteria. 

It can be difficult to get a mortgage as a gambler as lenders will likely consider you high-risk. Lenders will need to see that you have financial stability over a specific period – long-term gamblers with financial stability are likely to get accepted for a mortgage, so if you’ve been gambling for a shorter time, that could be one of the reasons why you were refused. 

It’s worth noting that putting down a larger deposit from your own funds and not a gifted deposit will also benefit you, as underwriters will see this as the borrower being more invested in the property. So, if you have been refused a mortgage, you may want to consider putting down a larger deposit. 

Speak to an expert to see if they can find a lender who can cater to your circumstances.  

Mortgage lenders: understanding your denied application

If your mortgage application was denied by a lender, you may be wondering what factors within your application they refused to lend to. We’ve examined the criteria of a select few below. 

Please note that the lender information below was correct at the time of writing. Please consult an expert for the latest information that’s relevant to your circumstances. 

Santander

If your Santander residential mortgage application has been declined, they may have done so if any of the following criteria applies to you: 

  • If you are unable to provide written confirmation of all types of income which will be used in the application
  • If you apply for a guarantor mortgage 
  • If you apply for a shared equity mortgage that’s not offered through the government's help-to-buy scheme 
  • If you and any other potential buyers are unemployed 
  • If the end of the mortgage term exceeds the applicant’s 75th birthday 
  • If an occupier who is not listed as a borrower on the new mortgage application wants to pay a lump sum towards the purchase of the property
  • If you have arrears in the previous 12 months 
  • You have ever been bankrupt 

If you want to appeal against Santaner’s decision, you can only do so on affordability reasons, and these appeals will only be considered if you have a substantial Santander relationship which consists of at least one of the following: 

  • A Santander UK plc mortgage with no arrears in the last 12 months
  • A well-conducted Santander current account that has been operated continuously within agreed limits and showing salary credits for a minimum of six months
  • A Santander savings account with a balance of at least three months' net earnings of all customers in the last twelve months

Nationwide

Nationwide look favourably on first-time buyers, though if your mortgage application has been declined (even for a mortgage in principle), then you may have failed to meet their general scoring. Some of which includes: 

  • If you’re on a debt management plan 
  • If you have a current payday loan 
  • Your income is (or is partially) foreign currency 
  • If the end of the mortgage term exceeds an applicant’s 75th birthday (however, current Nationwide borrowers over 75 can port their product over the remainder of their current mortgage term)
  • You have an undischarged bankruptcy 
  • You haven’t been discharged for a minimum of three years after bankruptcy 
  • Have a history of repossession 
  • If you’ve been unable to provide an acceptable full 3-year UK address history for all potential buyers 

If your Nationwide mortgage was declined after the property valuation, they may have done so if the property they valued was in fact worth less than the mortgage you’re applying for. 

Nationwide will conduct a standard valuation to determine a property’s value and overall condition, though they won’t share this with you, even if they decline your application. To see how your potential property performs, you’ll need to obtain either a homebuyers report or structural survey, the latter being ideal to obtain a thorough inspection on the property. 

Halifax

If Halifax have issued you a mortgage promise but declined it on full application, they may have unearthed an adverse credit issue that wasn’t declared in the original application or has only come about during the application. Halifax will consider defaults (both satisfied and unsatisfied), but the outcome will depend on the condition of the whole application. 

If your Halifax mortgage declined after valuation, you may have needed to choose one of three valuation types that Halifax accept. It can be tempting to go for the Level 1 package, which is very basic and is used for lending purposes only. If the property in question is an older building or in need of work, then you will need to choose another level. 

While you pay for the valuation yourself, forking out the extra money could benefit you in the long run. 

Obtaining an agreement in principle (AIP) that was then declined can be disheartening, especially since you passed the first check, though it’s worth contacting Halifax to see if anything in particular made them change their mind. 

Leeds Building Society

Leeds Building Society can be more flexible when it comes to adverse credit, as they could possibly accept buyers with a debt management plan, have unsecured credit or satisfied defaults. 

If Leeds Building Society has declined your application, it may be down to having an individual voluntary arrangement (unless discharged more than 6 years ago). CCJs are also another sticking point, as they could potentially lend to people with a maximum of one CCJ (or unsatisfied default) in the last four years, which must have been satisfied, and had no greater balance than £500 in value.

There are also restrictions on what income type you can include to determine your affordability. For example, adoption allowance and carers allowance aren’t accepted by Leeds Building Society, but tax credits and agency work are. 

HSBC

HSBC can be good for foreign nationals, as they only need 12 months of address history in the UK to pass the criteria. 

However, HSBC will decline applications from borrowers with mortgage or secured and unsecured loan arrears, and prospective buyers who have missed payments on other credit commitments will usually be declined, though individual cases will be considered in some circumstances. 

They may accept applicants with satisfied CCJs, though unsatisfied CCJs will be refused. However, there is a slight exception – if you’ve recently been issued a CCJ and can pay it off in full within 30 days, you may be able to get the judgement removed from the register and HSBC may then consider your application. 

Other factors that will mean a declined HSBC application include: 

  • Having an existing, unsatisfied debt management plan 
  • Bankruptcy 
  • Individual voluntary arrangements 
  • Unauthorised overdraft charges
  • Contractors with less than 24 months working experience 
  • Professional landlords where rent is primary source of income 
  • Self-employed people who used Projection as latest year 

TSB

TSB tends to be more lenient compared to high street lenders. They give each applicant a credit score using three types of information: the details you give to them in an application form; how you’ve managed any loans, credit cards or accounts; and information from a national credit referencing agency. 

This will be the basis they’ll use to see if you meet their criteria, at which point TSB may decline your application if: 

  • If you have one month or more late with a secure mortgage payment greater than £100 in the last six months, you will be automatically declined
  • If you have two months or more late with payments on individual debts in the last six months, your application will be refused
  • Outstanding CCJ greater than £100 in the last six years will be automatically declined
  • Current and unsatisfied debt management plans will be refused 
  • If you’ve been bankrupt within the last six years 
  • Individual voluntary arrangements 
  • If you declared universal credit, seasonal contract, probationary contract, piecework contract, foreign currency or mileage allowance as an income type 

TSB also offers buy-to-let mortgages, and they will not lend if any of the following apply: 

  • If you exceed the maximum age at point of application is 69, as they have a minimum 5-year term
  • If you do a back-to-back remortgage 
  • You used earned income in an affordability assessment 
  • You included any current rent received from the current tenant for your affordability assessment when it exceeds the valuer’s estimate
  • If you have a current and unsatisfied debt management plan
  • If you applied for an expat buy-to-let
  • If you’re a first-time buyer
  • If you’re a foreign national that does not have indefinite leave to remain 
  • If you’re a ‘full-time’ landlord. Applications need a £25k minimum income (per application, not individual) which needs to be derived from basic PAYE, self-employed, or pension income.
  • A house of multiple occupation (HMO) application 
  • If you don’t meet their income coverage ratio (ICR) 
  • Joint application, sole proprietor BTL mortgages 

Natwest

If your Natwest mortgage application has been declined, it may have been down to adverse credit, too many hard credit searches within a short space of time over a six-month period, or an affordability issue. 

Like other lenders (and especially high street lenders), Natwest have specific criteria you need to meet in order for them to accept your application. If yours was declined, then it could be for one of the following reasons: 

  • If you’ve applied with an unsatisfied CCJ 
  • If you currently have debt management that has not been satisfied 
  • If you have unsatisfied defaults 
  • If you’ve been subject to a bankruptcy or individual voluntary arrangement in the last six years 
  • Unauthorised credit account, although they may consider them based on your credit score, clear account conduct over a three-month minimum period, and gained underwriter discretion 
  • If you heavily rely on income benefits 
  • Remortgaging for business purposes 
  • Joint applicant, sole proprietor mortgages 

If an agreement in principle has been offered only for Natwest to then decline, it could be down to an unearthed credit issue or a minor error, so it may be worth speaking with a broker and seeing if they can rescue the mortgage or find you an alternative. 

If your application was refused after the property valuation, Natwest may feel that the property was worth less than the mortgage you applied for, or if the property’s overall condition didn’t meet their standards. 

Natwest require you to pay for your valuation, and you can choose between a basic condition report, a Homebuyer report, or a condition survey (which is a fully detailed report). 

If an issue was found in the property and you decided to proceed with your application, you will need to speak with the necessary builders and/or tradesmen who can estimate how much it will cost to fix the problems. You can then negotiate with the property price, and Natwest may lower their offer or, if the work required is significant or deems the property uninhabitable, they may withdraw completely. 

Kensington

Kensington identify as ‘specialist mortgage lenders’ and are only available through registered mortgage brokers. Because each case is examined thoroughly by underwriters, they can accommodate more circumstances than traditional lenders. 

However, like all lenders Kensington still have criteria they need their applicants to meet, and they may decline your residential mortgage application on these grounds: 

  • Failure to provide a two-year address history where you were eligible to vote on the electoral roll 
  • If you’re over the age of 55 at the point of application, or 90 at the maximum age at the end of the mortgage term 
  • If you’ve applied for a retirement interest-only (RIO) mortgage
  • If you’re after back-to-back sales within 6 months of application
  • If you declare specific benefit incomes as an income type (excluding child benefit where the child is under 13 and applicant’s income is less than £50,000). 
  • Foreign currency as an income type
  • AirBnB or similar mortgages 
  • Contract reassignment 
  • Current payday loans
  • If you have a bankruptcy in your name, including discharged bankruptcies

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Updated: 10th September 2019
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of 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 info 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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