How to Get Approved for a Mortgage Even If You Have Been Refused Before

The Lending Channel
Date Published:27/10/2023

You've got your sights set on that dream home, but there's one little hiccup – you've been refused a mortgage in the past.  

Don't worry; you're not alone in this boat. Many folks face similar challenges, and there are ways to turn the tide in your favour.  

In this quick informative guide, you'll learn some valuable tips and advice on how to increase your chances of getting approved for a mortgage with or without a mortgage broker, even if you've faced rejection before.  

So, read on and get ready to transform that 'no' into a resounding 'yes' in the world of mortgages and homeownership. 

 

Rejection is Not the End 

First and foremost, remember that being refused for a mortgage isn't the end of your homeownership dreams. It's a bump in the road, not a dead-end street. Your situation can improve, and you can secure that coveted mortgage approval.  

 

Understand Why You Were Refused 

Before you can improve your chances of mortgage approval, you need to understand why you were refused in the first place. Lenders have specific criteria, and they might have found a few weak spots in your financial profile. Don't be discouraged; instead, take this as an opportunity to grow. 

Was it your credit score? Maybe your income or employment history raised eyebrows? Or perhaps your debt-to-income ratio didn't quite cut it. Whatever the reason, pinpointing it is the first step towards rectifying the issue. 

Reach out to the lender who declined your application for feedback. They can provide insights into the specific concerns that led to the refusal.  

Armed with this information, you'll be better equipped to address those concerns in your next attempt. 

 

Improve Your Credit Score 

One of the most common culprits behind mortgage refusals is a less-than-stellar credit score. Your credit history is like your financial report card, and lenders use it to gauge your trustworthiness as a borrower. 

Start by obtaining a copy of your credit report from credit reference agencies. Review it meticulously for errors or discrepancies that might be dragging your score down. If you spot any inaccuracies, dispute them and get them corrected ASAP. 

Next, focus on boosting your credit score. Pay your bills on time, reduce outstanding debts, and avoid opening new credit accounts. Over time, these positive financial habits can lead to a healthier credit score, making you a more attractive candidate for mortgage approval. 

 

Save for a Larger Deposit 

A larger deposit can be a game-changer when it comes to mortgage approval. Lenders often view a substantial deposit as a sign of financial stability and commitment to homeownership. 

So, tighten that budget and start saving. The more you can put down upfront, the lower your loan-to-value (LTV) ratio, which can make lenders more inclined to approve your mortgage application. Plus, a bigger deposit might also land you a better interest rate, saving you money over the life of your loan. 

getting approved for mortgage

Image by Tumisu from Pixabay

Work with a Mortgage Broker 

Navigating the complex world of mortgage requirements can feel like traversing a maze. That's where a mortgage broker can be your guiding light. 

Mortgage brokers are experts at matching borrowers with the right lenders. They have access to a wide network of lending institutions and can help you find one that's more likely to approve your application, given your unique circumstances. 

Your local mortgage broker can also provide invaluable advice on improving your mortgage eligibility, from fine-tuning your financial profile to offering insights on which lenders are more lenient. 

 

Consider a Guarantor 

If your credit score or financial situation is still not up to par, consider enlisting the help of a guarantor. A guarantor is someone, often a family member or close friend, who agrees to step in and cover your mortgage payments if you default. 

Having a guarantor can provide the extra security that lenders look for. It's like having a co-pilot on your mortgage journey, boosting your chances of approval. 

Keep in mind that being a guarantor is a significant commitment, so make sure the person you ask is fully aware of the responsibilities involved. 

 

Mortgage Comeback: Refused Today, Approved Tomorrow 

Being refused a mortgage in the past doesn't mean you're doomed to a life of renting. With the right strategies and a bit of determination, you can significantly increase your chances of getting approved for a mortgage. 

Start by understanding why you were refused and take steps to address those issues, whether it's improving your credit score, saving for a larger deposit, or seeking expert guidance from an experienced mortgage broker.  

Consider the option of a guarantor if needed, but always ensure you're making a well-informed decision. In the end, perseverance and a proactive approach can turn that rejection into the key that unlocks your dream home's front door.  

Remember, Rome wasn't built in a day, and neither is your path to mortgage approval. It's a journey that requires patience and effort, but the reward of homeownership is well worth it. So, don't let past setbacks define your future.  

Ready to turn that mortgage rejection into an approval? Start your journey towards homeownership today.  

Get in touch with our expert mortgage advisors to take the first step towards your dream home. Your path to approval is one call away! 

Category Tags Mortgage Guides
We are a credit broker, not a lender and are paid a commission by our lenders, full details of this along with our fees will be detailed in the Terms of Business we issue to you.

The Lending Channel ltd is a member of the National Association of Commercial Finance Brokers (NACFB).

2/1 King James VI Business Centre, Friarton Road, Perth, PH2 8DY
Tel: 01738 583008 | Fax: 01738 500402

The Lending Channel ltd are authorised and regulated by the Financial Conduct Authority.
FCA number 626787
Company number SC334818
Data Protection Act: Z2030159

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT

Request a Call Back
To comply with data protection regulations (2018), we are unable to store and use your information unless you give us your permission. Please select Yes to allow this. View our data protection policy for details.*
Web Design by Inspire