There are many reasons why people seek out a mortgage and protection advisor, but one of the most common reasons why is heartbroken people trying to handle a mortgage rejection.
With the Bank of England’s Base Rate having increased from 0.1 per cent to five per cent in less than two years, this has caused mortgage rates to increase as well, and with mortgage rate increases comes more restrictive borrowing criteria.
The most important first step after receiving a rejection is to not take it personally and try not to feel too hurt about it. Mortgage applications are very commonly declined, and lenders have much more varied criteria than you might think.
Often people who are rejected less for anything they did wrong but are just seen as not the best fit.
The next step is to take a deep breath. It can be tempting to fire off other applications with alternative lenders, but a rejection is the time to take stock and make sure there is nothing you can do to improve your application.
As well as this, too many applications for credit in a row can lead to hard searches on your credit report, which can hurt your credit rating and decrease your chances with another provider.
Double and triple-check your application, and make sure your financial circumstances would not benefit from a specialist provider.
If you have had a CCJ, credit default, late payment or are self-employed, you may be in a situation that some lenders deem complex and therefore outside of the scope of the type of borrowers they are looking for.
As well as this, try to build up your deposit if you can; the higher your deposit, the more mortgage options are available to you and the more likely a lender will accept you at a favourable rate.
