What Does It Feel Like To Be Refused A Mortgage

What Does It Feel Like to​ Be Refused a​ Mortgage?
Have you​ ever been refused a​ mortgage? you​ would be surprised just how many people face the​ frustration of​ a​ negative decision on​ their mortgage applications – the​ feelings it​ creates vary,​ from panic through to​ sheer incomprehension.
While it’s never pleasant to​ be told you​ can’t get a​ mortgage,​ it’s worth considering the​ situation from the​ lender’s point of​ view for a​ moment .​
a​ mortgage usually represents a​ considerable sum of​ money – according to​ Credit Action,​ the​ average outstanding mortgage is​ nearly £100,​000 in​ almost 12 million households in​ the​ UK!
When dealing with such a​ colossal amount of​ money it’s no surprise that lenders seek to​ minimise risk wherever possible .​
a​ significant part of​ this is​ not to​ lend to​ people that are considered a​ high risk.
In the​ UK,​ there tend to​ be two groups of​ borrowers – prime (those people with a​ regular,​ provable income from an​ employer and no history of​ bad credit) and sub-prime .​
It’s a​ rather unflattering term but those in​ the​ sub-prime category represent those who are more likely to​ be declined a​ mortgage by the​ High St lenders.
There may be obvious reasons why you’ve been turned down for a​ mortgage – for example if​ you​ have been repossessed or​ faced a​ County Court Judgement in​ the​ past.
Ironically,​ sometimes remortgaging your home can be the​ ideal way of​ sorting your credit problems out by releasing equity from your house OR in​ the​ case of​ mortgage arrears and repossession by showing the​ courts that you​ have the​ means of​ settling your debts (with a​ remortgage with a​ repossession specialist) .​
If you’re in​ this situation and can’t get a​ mortgage it’s worth searching for a​ specialist lender.
One of​ the​ major groups that face regular refusal from High St lenders is​ the​ self-employed .​
While you​ may feel annoyed at​ being included in​ the​ same category as​ those with bad credit or​ mortgage arrears,​ the​ fact is​ that if​ you’re self-employed,​ have incomplete or​ missing accounts and can’t prove your income you​ represent a​ higher risk to​ the​ banks – that’s why self-employed people frequently choose to​ self-certify thus avoiding the​ necessity of​ proving their income.
You may of​ course be in​ regular employment with no history of​ bad credit and STILL have been turned down for a​ mortgage .​
If this has happened to​ you​ it’s worth checking your credit record with one of​ the​ UK credit agencies – you​ can do this online and get a​ copy of​ your credit record for only £2.
Of course,​ being refused a​ mortgage by a​ High St lender doesn’t mean it’s the​ end of​ the​ road for your borrowing – there are number of​ lenders who specialise in​ finding mortgages at​ reasonable rates for those who fit into the​ sub-prime category.

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