What to do if You’ve Had A Mortgage Refused After the Contract Exchange
Find out what to if if you've been declined after exchange.
Firstly, have you had a mortgage declined in the last 12 months?
No impact on credit score
Why use us?
At OnlineMortgageAdvisor we know that everyone's circumstances are different. That's why we only work with expert brokers who have a proven track record in securing mortgage approvals
- Higher chance of approval
- No impact on credit score
- Mortgage Approval Guarantee - or £100 back*
- We don't charge a fee
- There for you every step of the way
- Rated excellent on Trustpilot, Feefo and Google
If you have any questions,
feel free to call us on 0808 189 2301
Having a mortgage application declined after the exchange of contracts has taken place is relatively rare, but it can happen from time to time, and when it does, people often feel like their homeownership dream is hanging by a thread.
We understand that hitting a snag so close to completion can be frustrating and upsetting, not to mention stressful, but don’t for a second think that you’re out of options. In this guide, we’ll tell you exactly what to do if you’ve had a mortgage offer withdrawn after the contract exchange and explain how to get your plans back on track as quickly as possible.
What to do if you’ve had a mortgage refused after contract exchange
First of all, banish any thoughts you have about this being the end of your mortgage plans. It’s only natural to feel stressed if you’ve had a mortgage declined just before completion, but it is possible to revive a mortgage application that has stalled after contract exchange.
Here are the steps to take to give yourself the best chance of reviving your application…
- Don’t rush into another application: First of all, take a quick breather and don’t rush out to another mortgage lender right away. Another rejection at this stage could impact your credit report and jeopardise your chances of getting a mortgage in the near future – the next steps are crucial, and you need to get them right.
- Get the right advice from an expert: You will need specialist advice from a mortgage broker if you made it as far as the exchange of contracts stage before being declined. The right broker will give you the best possible chance of either successfully appealing against your lender’s decision to withdraw your application or finding a better deal with another mortgage provider. We offer a free broker-matching service that can instantly pair you with a mortgage advisor who specialises in these things.
- Let us take things from here: Once we’ve matched you with your ideal mortgage advisor, they will take things from here, so you can take a pause to get your bearings. The mortgage advisor we pair you with will be an expert at overturning mortgage withdrawals. They will take the lead on the renegotiations with your current lender and also search the entire market in case there’s a better alternative out there.
Timing is of the essence when you’ve had a mortgage offer withdrawn after the exchange of contracts, so it’s a good idea to speak to an expert right away. Make an enquiry with us and we’ll quickly match you with a broker who can go through your options with you today.
Speak to an expert in mortgage refusals
Maximise your chance of approval with a broker
Reasons why a mortgage might be declined after exchange
A bank or any other type of mortgage lender can refuse to offer a mortgage after the exchange of contracts has taken place. In fact, they have the right to withdraw a mortgage application at any point before completion, should they have a good reason to do so.
The most common reasons a mortgage might be withdrawn after exchange are as follows…
Bad credit has come to light late on
Bad credit would usually be discovered long before this point, but some mortgage lenders carry out a final credit check before completion. They might do this if they have any reason to suspect your credit report has changed since the beginning of the process, or if your application is complex and needs additional scrutiny from the lender’s underwriting team.
If the bad credit found after the contract exchange is deemed to be too severe, there’s a good chance the lender will withdraw your mortgage application before completion.
Your affordability has changed
If your mortgage lender has any reason to believe that your financial situation might change, they have the right to reassess it after exchange. If your income has dropped or your outgoings have significantly risen since you applied for your mortgage, they could pull the plug on your application or rethink the amount they’d be willing to let you borrow.
The lender suspects foul play
When evidence of possible fraud, money laundering or any other type of financial foul play comes to light, mortgage lenders can legally withdraw a mortgage application at any time.
An error on the application
A simple error on your mortgage paperwork can derail your application at any point, even after the exchange of contracts. This could be something as minor as a misspelt address or outdated proof of income – needless to say, you should double-check everything!
How we can help you overcome these problems
The mortgage broker we match you with will start out with a quick fact-find to establish why you were rejected after exchange and what can be done about it.
To get your plans back on track as soon as possible, they will explore whether there are grounds to appeal against the lender’s decision to turn you down for a mortgage. They will take the lead on the renegotiations, but will also search the entire market to check whether switching to a different mortgage lender is the best and quickest way to revive your plans.
The brokers in our network have deep working relationships with lenders who…
- Offer second chances to borrowers who were declined after exchange
- Can be flexible with all forms of bad credit
- Can offer higher income multiples
- Is willing to approve customers with high debt-to-income ratios
Since the brokers we work with know these lenders inside out, they can negotiate the best rates and deals with them on your behalf. They will also guide you through the re-application process so you can be confident your paperwork will be free of errors.
How we got Imran's mortgage approved!
"I thought my mortgage was all sorted. Had the delivery van booked and everything, so I was distraught when my lender told me they had found an issue with my credit report during the final checks before completion. Not only did Online Mortgage Advisor stop my house move from falling through, they saved me money as the new lender my broker found was offering a lower rate."
Can a Help to Buy mortgage be refused after exchange of contracts?
Yes, and this can happen for many of the same reasons we have discussed above. In addition to this, some Help to Buy mortgages hit a snag at the Authority to Exchange (ATE) stage. This is an extra step in the process where the Help to Buy agent contacts the conveyancing solicitor to grant them the right to exchange contracts with the developer.
ATE is valid for 28 days but it can be declined for the following reasons…
- The agent suspects you’re planning to rent your property out
- They find out you have a history of severe bad credit
- They have reason to believe you’re not a first-time buyer
- They suspect you’re using another government scheme as well as Help to Buy
If you’ve had a Help to Buy mortgage declined at the ATE stage, you should speak to a broker who specialises in Help to Buy mortgages. They can advise you on whether there is any room to salvage your application by renegotiating with the agent and/or lender.
We're so confident in our service, we guarantee it.
We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*
Where to get the right advice if a specific lender has declined you after exchange
The mortgage brokers we work with can help you regardless of which lender turned you down after exchange, whether that’s a high street bank or a specialist lender.
You might, however, want to take look through the guide pages we have dedicated to customers who have been declined by the specific mortgage lenders listed below…
Article key takeaways
Declined after the contract exchange doesn’t mean it’s overA mortgage broker with the right expertise could help you appeal against your lender’s decision or find you another mortgage provider who’s willing to approve you.
Expert advice is highly recommended:Going it alone without guidance from a mortgage expert means there’s a higher probability of another rejection, and this could be damaging to your credit report and set your plans back even further.
We can help you get it done right:Using a mortgage broker you chose at random isn’t the answer here. You’ll need somebody who specialises in reviving mortgage applications that broke down before completion, and our free broker-matching service will handpick a fully-vetted advisor with this expertise for you.
We can help you get it done quickly:Time is usually of the essence if your mortgage made it beyond the exchange stage. Everything else you need to complete your home purchase is probably in motion, so you’ll no doubt want to get your plans back on track as quickly as possible. Our broker-matching service can help you do exactly that, by handpicking the right advisor and connecting you with them today.
Call 0808 189 2301 or make an enquiry and we’ll arrange a free, no-obligation chat between you and a mortgage broker who specialises in reviving withdrawn applications today.
Not always, but if your mortgage lender has any reason to suspect your circumstances have changed since you originally applied, they might take a closer look at your credit report before completion. This can also happen if your application is complex and the lender thinks it calls for extra scrutiny from their underwriting team after exchange.
Seek professional advice from a mortgage broker and don’t assume that getting a mortgage is impossible because the COVID-19 crisis disrupted your plans. The brokers in our network worked business as usual throughout the pandemic and successfully arranged mortgages for customers who were on furlough, changed jobs and had their affordability impacted.
This is a possibility. The further along you get into the mortgage application process, the more likely it is that you will lose any upfront fees you paid if the agreement breaks down.
Seeking advice from a mortgage broker is the best way to safeguard yourself against this. Not only can they potentially negotiate a fee refund on your behalf, they might be able to find you an alternative lender who is offering a better deal than the one you had withdrawn.
Yes. Mortgage lenders have the right to withdraw a mortgage offer at any point before completion, even on the day it’s due to be finalised. It’s relatively uncommon for a lender to cancel an application this far into the process, though it has been known to happen.
If you’ve had a mortgage withdrawn on the day of completion, you should get in touch with us right away. Timing is everything in situations like this and we can make sure you get the right advice from a broker that same day, so you won’t necessarily have to delay your plans.
My bank turned me down!
After my mortgage was turned down by my bank, I contacted OnlineMortgageAdviser because they sounded professional and reliable. Narinder explained everything to me and communicated regularly. I got a great deal thanks to him and I couldn’t recommend him highly enough.
Gynonwen - 3 months ago
They pulled out all the stops
Great staff and good communication. Helped us understand the process and gone over and above to help in a difficult situation. Other companies couldn't even be bothered but Thank you so much!
Anneke Woolley, 12 days ago
Our advisor was amazing from the start!
Aaron went above and beyond. He worked late and kept in contact with me and worked tirelessly to find me the best mortgage he could
James, 10 days ago
Rated 4.8 out of 5 stars across Trustpilot, Feefo and Google
Ask Us A Question
We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.
Ask us a question and we'll get the best expert to help.
Get in touch today
Make an enquiry and we'll arrange for an experienced mortgage broker we work with to contact you straight away.