What can stop you getting mortgage

Purchasing a property through a mortgage is a significant decision that requires careful consideration, especially if you are not a cash buyer.

But what can stop you from getting a mortgage?

There are several considerations one should keep in mind before going ahead and making an application.
As the housing market is highly in demand and property prices are growing, it is advisable to work with a reliable,
dedicated, and experienced local mortgage broker.

This would help you get the best possible deals in the market and make your work a lot easier.
Mortgage eligibility is the deciding factor when it comes to you successfully getting the loan.

Depending on the type of mortgage you are applying for and the deal you are looking for, make sure you pass all eligibility criteria successfully to get your desired funds.

Although the detailed and more specific factors differ for different mortgage types, here are some of the most common mortgage factors you should know if you are looking for one.

Total debts

One of the first factors a mortgage lender would consider is the number of existing debts you owe on credit cards, personal loans or car finances.

Mortgage lenders will take all your existing debts and future debts into account while assessing your application.

If the amount of debt you owe is substantial, the chances of your mortgage application getting approved are quite low.
If you are looking to get yourself an ideal mortgage deal, make sure that you keep your debts to a minimum.

Credit history

This is another extremely important factor with your mortgage application.
Your credit history provides lenders with information about the money you borrowed in the past and how you made repayments.

Have you ever missed payments, have had defaults, a CCJ or a voluntary arrangement to pay your loan?
Poor credit scoring means you will have less of a chance for approval for your mortgage application.

Little credit history

While a good record of repayments in the past helps you get a good mortgage deal, having a blank credit history is almost as bad as having a poor credit history.

When you have no history of borrowing money, address and electro role this will leads to a poor credit score.
With a poor credit score, lenders will not be able to judge how regular or irregular you would be while repaying your mortgage, hence why it is almost as bad as a low credit score.

Electoral Roll

Although being on the electoral roll will not increase or decrease the amount of loan in a loan you can get, not being on it can get your application rejected.

If you aren’t already, make sure you are on the electoral roll before applying for a mortgage. This is because several mortgage lenders across the board rely on the electoral roll to confirm the identity of the borrowers.

Visa restrictions

If you have a work visa, this could also restrict you form approaching lenders.
Most lenders require a permanent residence as a UK or EU national.

Being on a tier 1 or 2 visa means very limited lenders available.
This could stop you from getting mortgages from lenders unless you have a higher deposit than most.

Marianna FS can find you mortgage lenders if you have a visa, get in touch to our experienced broker and team for a fee-free mortgage!

Less deposit

Most lenders do offer a 5% deposit mortgage. But, due to personal credit scoring or the type of property purchase, you may require a higher deposit.

Lenders may want to see 10% to 15% deposits to process your application, especially if you are buying a new build or a leasehold property.  Restricted amount of deposit may stop you from getting a mortgage.

Error made with an application

There may be a mistake on your mortgage application, which may lead to a decline by your mortgage lender or you may not be aware of the lender’s criteria before making an application. It could result in a turn down of your mortgage application.

These were some of the most noteworthy reasons we can see stopping  your mortgage application.

Irrespective of the type of mortgage you are applying for, speak to MariannaFS, with ample expertise and experience, let us handle your mortgage application fee free for 100% success.