Declined Mortgage

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Affordability checks and credit

Lenders will carry out an affordability check to ensure that you can afford the mortgage and the monthly repayments that you are applying for. This will incur a check into your credit history and your monthly outgoings. The lender may decline you if you cannot afford the repayments.

If you have:

  • Poor credit history or no credit history 
  • Debt
  • Missed payments recently
  • Have had inconsistent income
  • Taken out payday loans
  • You have had a default or County Court Judgement (CCJ) in the past six years
  • Too many credit applications recently or in a short space of time.

If you have missed payments or have inconsistent income it suggests that you are a high-risk borrower. Taking out payday loans is detrimental to your credit score and should be avoided as much as possible.

A County Court Judgement (CCJ) is a court order which is issued against you if you fail to repay money that you owe. Paying off a CCJ within 30 days of it being issued could avoid it being added to your credit record. It is important to never ignore a CCJ.

Anything which raises a concern or suggests that you are a high-risk borrower will end up with your mortgage application potentially being declined, you can find specialist lenders out there who will accept applicants with bad or adverse credit but you may need help finding them.

It is so important to ensure your credit is in check before you apply for a mortgage and your information is correct. You should ensure that the address you are applying with is registered on the Electoral Roll so that it matches your application.

Self-Employed declined mortgage application

Being Self-Employed can come with its benefits and its risks and there is nothing worse than being told “no”. It could be due to a number of reasons to do with your credit history and nothing to do with your employment but there are a few reasons Self-Employed mortgage applications can be refused.

Whether you are a Contractor or just work through contracts you need to try and have a year’s worth of contracts (ideally as a minimum) with not many gaps between. You need to show that you have a reliable and steady income. Gaps that can be explained and are excusable such as illness or family reasons etc. are usually exceptional.

A common reason for being declined when you are Self-Employed is not having enough tax returns or proof you have paid your taxes. Maybe you haven’t been trading long enough to provide the lender with their required information.

Another common reason is not having enough proof of future income, you need to be able to show you can afford the mortgage you are applying for. You can get income projections from chartered accountants who will calculate your earnings and provide these alongside your mortgage application.

Other reasons you could have been declined

Small mistakes on your mortgage application have the potential to result in a rejection, lenders’ do not have the time to review applications for mistakes and rely on the information provided at face value. Lenders criteria will differ across the market and you need to check them as you need to fit them in order to borrow from them. You need to ensure you read through these and fit all of them.

Deposits are so important and if you do not provide a big enough amount then you will instantly be turned away. If you do so happen to have a low credit score or another reason why you could be rejected, then a big deposit will boost your chances of hearing “yes” from a lender.

Speak To An Expert

Total Home Loans are a national mortgage broker with whole of market access. Their combined experience of over 50 years in the mortgage and financial services industry means they have an enviable reputation and one which makes them well-placed to find the most suitable mortgage solution for you.

Why did my mortgage application get declined when I had an Agreement in Principle?

An Agreement in Principle is from a mortgage lender to say that they think they would give you a mortgage, based on the information you provide. This form of agreement does not do hard credit checks and go into major detail, so even if you receive an Agreement in Principle, your application could still be declined if there are discrepancies when they look further into the detail of your finances.  

Does being declined affect my credit score?

Being declined for any type of credit isn’t going to look good when it next comes to applying for more. It doesn’t however directly affect your credit score; it will show that you have applied for a mortgage but no information on whether you were accepted or not. Mortgage applications carry out checks into your credit history and too many soft checks or hard searches can even damage your score.

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How can a Mortgage Broker help me if I have been declined?

Mortgage Brokers are experts when it comes to mortgages and the ever-changing mortgage market, chances are you wouldn’t be reading this had you approached one before your application!

A Mortgage Adviser will be brutally honest with you and tell you if it is worth waiting before making an application. If you have bad credit or other issues then there may be specialist lenders out there for you who will accept you onto a mortgage. We are Whole of Market Mortgage Adviser and have access to products not available on the high street and exclusive deals through our Network Quilter Financial Planning Ltd

Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Kevin Franklin

May 31, 2022


Very professional company. I’m 63 Years old and was having trouble sorting any kind of mortgage but Mark from Total Home Loans saved the day. please do not hesitate to contact them first as I wasted a lot of time hunting around for others.

Well done Mark and the team, the number 1 company.

Lolita Cooksley

May 16, 2022


Very professional fast efficient service and really caring and genuine people to deal with. They have helped us with our mortgage twice and been great both times.

We wouldn’t hesitate to use them again in future.

Karin Salmons

May 16, 2022


Thanks to Total Home Loans and their patience, care and understanding, along with their skill and kindness, my partner and myself are now home owners something I never thought would happen,

Please even if you think it’s not something you can achieve give Total Home Loans a call they will work for you.

Again thank you all at Total Homes Loans.

Arfan Ramzan

May 5, 2022


Great service, I tried so many brokers but no one could help but Total Home Loans were the only ones who found me a lender. It was really hard to find someone, I went to 8 brokers all found online with there so called promising words trying to bring customers in still no good for me but Total Home Loans got the job done, excellent service, will recommend 💯💯💯 and there was no fee till all applications was complete unlike some brokers.

Steve Greenfield

May 4, 2022


Very happy with my experience with Total Home Loans. Very professional company, were always quick to reply and action whatever was needed.

Will definitely be back! I’ve already recommended them to a friend and they had the same positive experience that I had.

Why Total Home Loans?