Reasons Your Mortgage Application in Sheffield Has Been Declined
Credit Score Mortgage Advice in Sheffield
Passing a credit score
Each lender has a different playing field when it comes to credit scoring. You may find it easy to pass with some lenders and hard with others. If you fail to pass a credit score, lenders can sometimes be unhelpful and not tell you the exact reason why you failed. This can be down to a mixture of things and they can’t find exactly why your application was unsuccessful.
This is where your local expert Mortgage Broker in Sheffield offers you a helping hand. If you are able to obtain a copy of your credit file, come and speak to one of our Mortgage Advisors in Sheffield and they will try their best to match you with a lender that you have a high chance of passing with. Also, offering a deposit of more than the minimum of 5% will increase the chances of you passing a credit score for a mortgage.
How to improve your credit score
There a lot of different ways that you can improve your credit score in Sheffield. If you have a credit card, using it regularly and paying it off every month is a great way to prove that you can keep on top of payments. Registering on the voter’s roll can also really help and is really easy to set up. If you also have any old bank accounts or store cards that are no longer in use you should get them closed down as this looks better from the lenders’ viewpoint. You can read about more ways on how to improve your credit score here or you can watch our YouTube video “How To Improve Your Credit Score”.
If you have failed a lenders’ credit score, don’t worry! There are lots of different lenders out there, all with different criteria. You should eventually find one that you will fit perfectly. On the other hand, don’t apply for too many hard credit checks as the more you do the worse effect it can have your file. Lenders can clearly see you are failing over and over, possibly removing all of your chances of passing altogether.
Declined for a mortgage on affordability
As well as having their own unique lending criteria, each lender will also have their own way of how working how much you are able to borrow. It is more than normal to approach ten different lenders and receive ten completely different answers. Some will be lenient and some will be strict. For example, if you are self-employed in Sheffield, the lender may be more generous. You will find that some lenders will assess 100% of an employee’s overtime and bonuses and others may not, it depends on the lender. Others may allow you to pass with “unearned” income such as tax credits, child benefits and maintenance.
As a trusted Mortgage Broker in Sheffield, we hold over 40 different lenders on panel. We can approach any of these for you, without the need for a credit check, to perform an affordability assessment for you. Are you thinking of buying a home anytime soon? If so, to get ahead of the game, you could have an affordability assessment carried out before you start searching for properties. This would show you what sort of financial situation you are in before you start getting credit checks.
Providing evidence that you have kept on top of your mortgage and rent payments does not guarantee that you will pass a lenders own affordability test.
Outside of lending policy
Each lender has their own strict lending criteria. Some are better than others depending on your personal and financial situation. Lenders want to attract good quality borrowers who may not fit their competitor’s criteria. They engage them by carving out niches for themselves. Here are some reasons why your mortgage application could be denied or has been denied for being outside of policy:
- Amount of time in employment or self-employment
- Adverse credit history
- Not meeting the minimum deposit
- Non-standard property construction
- Married applicant applying for a sole mortgage
- Minimum/maximum age or mortgage term
- Minimum/maximum loan amount
If you come to us, your local Mortgage Broker in Sheffield, we can find the best lender for you based on your personal situation. Even if you think your situation is a little complicated, don’t hesitate to get in touch. We have dealt with thousands of complex cases and we can’t wait to help you through yours. With our help at Sheffieldmoneyman combined with a perfectly matched lender, you will be able to put down a deposit for a mortgage in no time! Get in touch with a Mortgage Advisor in Sheffield and receive a Free Mortgage Consultation today.