From No To Yes: Navigating Rejection When Buying A House

Being declined for a mortgage can be crippling. Just like that, your dreams of home ownership feel like they’re gone forever. Whether you were half-expecting problems or thought you would have a smooth ride, you’ve likely looked at the houses out there already (because who can help themselves?) and got your hopes up that everything would be okay.

In a sense, we’ve got good news for you – everything can be okay, despite this setback. In fact, the vast majority of buyers who receive rejection go on to buy without any trouble. The main thing to do here is think forward, and not let that rejection stop you.

Rather, you need to find ways to turn from a no into a resounding yes. And, we’ve got three top ways to help you do just that. 

# 1 – Seek help from brokers with experience in your situation

If you’re declined for a mortgage from the bank directly, then a broker is the obvious next step. Sadly, they do take a cut of any mortgage offer you receive. While the right broker is 100% worth your money, failing to do your research could see you with the wrong person, and paying for the privilege.

Make sure it doesn’t happen by taking the time to find someone who’s versed in your unique situation. There are brokers to help with everything from bad credit mortgages to a mortgage for teachers, so you can bet there will be someone out there for you. Find them, and then trust them to help make your mortgage happen. 

# 2 – Directly address problem areas 

Even if you weren’t aware of them, struggling to get over the line like this usually signifies a problem, often within your credit history. Unfortunately, a bank can’t tell you the reasons behind a rejection, but it is in your power to do some digging. It may be that you need to repair old debts. Or, there may be mistakes somewhere in your credit history that need clearing. Either way, getting to the bottom of the problem should put you on the right track again. 

# 3 – Reconsider your capabilities

If neither of the above get you closer to your goal, then it’s worth reassessing your capabilities. Often, first-time buyers don’t realise how strict affordability criteria can be. Ultimately, though, the fact that you may be paying £1,000 in rent right now is no guarantee that a bank will lend you that much. After all, as well as taking your earnings/outgoings into account, they need to make sure that you can pay if rates rise, a fact that they calculate by considering what your payments would be based on the highest interest rates of the last twenty years. 

If you’ve been denied the amount you were hoping for, ask the bank or your broker to work with you to find a more suitable payment floor. Then, you should receive an instant approval that could, eventually, lead you to the kind of home you’ve always dreamt of.

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