Be Careful of Being Declined For a Mortgage
According to recent research by Experian, 33% of all mortgage applications are declined by lenders. Many of our customers come to us after this has happened. They are usually VERY stressed out! They then go on to wish they had rung us in the first place before they had applied directly to a lender. Here we look at some of the pitfalls which lead to people being declined for a mortgage.
Being Eligible For A Deal
The research carried out by Experian also found that only 3.5% of people searching for mortgages were eligible for every deal on the market. This highlights that you probably won’t qualify for every deal advertised.
According to Experian, 22% of applicants start their search for a mortgage by using a price comparison website. There is nothing wrong with starting there but remember these websites can’t match you to all the nuances of a lender’s criteria. Unfortunately, it can be weeks down the line when a lender finally declines an application. This shows that applying for the wrong mortgage can cost you the house you are going for. This is because it may take too long to get another application completed in time.
The analysis also showed that 27% were eligible for a mortgage but only for a reduced amount. Again, we find this happens a lot of the time. A lender says you can borrow one amount but, down the line, they find a reason to reduce the mortgage available. It’s amazing the variance in the amount one lender will lend you compared to another.
We have access to 1000’s of mortgage deals that we can search on your behalf. Although it may cost you slightly more to use a broker, it will save you a lot of aggravation in the long run. And most customers who utilise the service feel it’s well worth it to ensure a smooth process.
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