Mortgage Declined After An Agreement In Principle
If you’ve recently been declined for a mortgage you may think you’ll be unlikely to get one from another lender. Making further applications with different lenders you would be right, as doing so can damage your credit file due to hard searches from multiple lenders. I’ve helped many people to get a mortgage after being declined as I understand the criteria of lenders, and who is most likely to say yes first time.
What Is an Agreement in Principle (AIP)?
An Agreement in Principle, also known as a Decision in Principle (DIP) or Mortgage in Principle, is a statement from a lender indicating that they would lend you a certain amount, based on an initial assessment of your finances. An AIP is useful when house hunting as it shows sellers that you are a serious buyer. However, it is not a guarantee of a mortgage offer, and further checks can lead to a decline.
Should I apply again if I’ve been declined for a mortgage?
No! This can damage your chances of success.
I see it so often when I am reading a client’s credit file that they have numerous credit searches from different mortgage lenders. I know from experience, there is not a chance that those lenders would have lent to them.
The more times you apply for a mortgage to lenders that leave a ‘hard’ credit footprint on your file, the less chances you have of being offered a mortgage.
Why was my mortgage declined after an agreement in principle?
One common reason is a failing credit score, the most annoying reason a lender can offer. On the day you applied you simply did not have enough points. You could apply tomorrow however, with the same lender, and pass because the lender has changed their point’s allocation. But there are ways to make sure you give yourself a better chance of passing. Have a look at the Boost Your Credit Score page on my website but here is one to remember when you are completing the mortgage application form.
The importance of filling out a mortgage application in full
Complete every single box or section on the form because every answer you give will be allocated a score. If you leave out a telephone number you may lose a point. Miss out a full three year address history and you will lose even more points. You will never know how many points you had, but give yourself the best possible chance by completing the form fully.
Finding Lenders for mortgage applications after a decline
Finding a home and applying for a mortgage can be a very stressful time, and nothing adds to that stress like having your application declined or rejected. But being refused isn’t the end of the road though.
Since 1986, I’ve helped people in your position to find a lender prepared to take another look at your application, putting you a step closer towards owning your own home or property.
Only a handful of subprime lenders currently operate in the UK property market, so you have to get your mortgage application right first time to avoid more rejection and refusals. And that’s where I can help.
The first step to doing this is finding out just why your application was refused?
How credit issues can result in a mortgage being declined
Before I can help you find a mortgage, we need to discuss your current financial situation. You’ll need to share your credit history and details of your income, and tell me how much you’re looking to borrow to finance your property purchase. Then we’ll look at why you were refused and find a way around it.
In my experience, the most common reasons for applications to be refused are as follows:
- Poor Credit Scores
- Existing Debt
- Bankruptcy
- County Court Judgements (CCJs)
- Debt Management Plans
- Defaults
- Debt Relief Orders
- Director Guarantees
- Individual Voluntary Arrangements (IVAs)
- Mortgage Arrears
- Payday Loans
- Repossessions
- Low Credit Scores
- Low Income/Small Deposits
All of these rejections have one root reason. Lenders don’t like to take any risks.
If you have a poor credit history, lenders won’t want to approve your mortgage. I’ll examine your credit history with you and if there is incorrect information that’s holding you back, I’ll show you how to correct it. Top tip is to dissociate yourself from a previous partner on your credit file.
If you’re already in debt, lenders may not want to add the burden of mortgage payments onto your stretched finances. I’ll help you to find lenders who may be more flexible in their underwriting criteria or help you to understand how to manage your debts so that lenders can see you can take on the responsibility of a mortgage. All this should give you a better chance of a mortgage in the future.
Many lenders are put off by issues such as CCJ’s, IVA’s and Bankruptcy – even if your CCJ was the result of an illness or redundancy leading to a missed instalment of your credit card bills. However, depending on the time since your issues, and the amount of money involved, I may be able to find a lender willing to approve your application.
The best advice I can give you is to be realistic about the mortgage you can afford. If you have a lower income or smaller deposit than your lender is looking for, your mortgage is likely to be refused. If your income is a barrier to the home you want, I’ll advise you on alternative lenders, and look at different kinds of mortgages.
No matter why your initial lender declined your mortgage, I’ll help you to find an alternative.
Information held on your credit file
The information held on your credit files is very important as lenders use these agencies to look at your credit history for the past 6 years. If you have been refused a mortgage and the lenders say ‘have a look at your credit file’ you can bet you have something adverse on there.
When you call me, it would help if you had a copy of your file to hand from Check My File – free for 30 days and then £14.99 a month and you can cancel anytime – which checks all three credit reference agencies. Its a good place to start to get an overview of your credit history. It may be that once I have identified a lender, we get copies of your credit file directly from the agency the lender uses to make absolutely sure your credit history is OK for that particular lender.
Why You Should Use a Professional Broker when a Mortgage is Declined After an Agreement in Principle
As a mortgage adviser, I am not limited to any single lender. This independence means I can act in your best interest, finding a lender who is likely to approve your mortgage application. I will begin with a no-obligation discussion to understand the reasons behind your rejected application and your current financial state. After evaluating your situation, I will provide an honest assessment of your prospects and assist you in preparing an application to a subprime lender.
It is crucial to get your application right because you typically have only one chance to avoid another decline. Fortunately, my extensive experience allows me to ensure your application has the best possible chance of being approved.
Take the Next Steps Towards Your Mortgage Approval
A mortgage decline after an Agreement in Principle does not mean your homeownership dreams are over.
Start your journey towards homeownership by calling 01494 526400 or 07949 713563 to discuss your mortgage needs. I am committed to making sure the next response you receive from a lender is “Yes!”
For more detailed information on how I can assist you after a mortgage refusal, please complete my online enquiry form.
Yes, you can reapply, but it’s essential to address the reasons for the initial decline first and ensure you get it right the next time. Immediate reapplications can harm your credit score due to multiple hard searches, and leaving a negative mark on your credit history. Improve your financial situation, and consider consulting with a mortgage broker who have access to exclusive and suitable lenders and help strengthen your application to get it right.
I recommend that you focus on improving your credit score as a whole by reducing any existing debt, and ensuring all your documentation is as accurate and complete as possible. Working with a mortgage broker who specialises in declined mortgages can significantly increase your chances of a mortgage by finding lenders with more flexible criteria and provide expert advice on presenting a stronger application.
Inform your lender about any changes in your financial situation, such as income, employment status, or significant financial outgoings. A professional mortgage broker can reassess your situation and help you find a lender that suits your current financial circumstances, ensuring a better chance of approval.
Yes, there are lenders that specialise in offering mortgages to individuals declined after an Agreement in Principle. These lenders often have more flexible criteria and consider applicants with adverse credit or other financial challenges. Consulting with an experienced mortgage broker can connect you with these lenders and improve your chances of getting approved.
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A quick overview of the topics covered in this article.
- What Is an Agreement in Principle (AIP)?
- Should I apply again if I’ve been declined for a mortgage?
- Why was my mortgage declined after an agreement in principle?
- The importance of filling out a mortgage application in full
- Finding Lenders for mortgage applications after a decline
- How credit issues can result in a mortgage being declined
- All of these rejections have one root reason. Lenders don’t like to take any risks.
- Information held on your credit file
- Why You Should Use a Professional Broker when a Mortgage is Declined After an Agreement in Principle
- Take the Next Steps Towards Your Mortgage Approval
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October 11, 2024
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October 11, 2024
Mortgage Declined After An Agreement In Principle
If you’ve recently been declined for a mortgage you may think you’ll be unlikely to get one from another lender. Making further applications with different lenders you would be right, as doing so can damage your credit file due to hard searches from multiple lenders. I’ve helped many people to get a mortgage after being declined as I understand the criteria of lenders, and who is most likely to say yes first time.
What Is an Agreement in Principle (AIP)?
An Agreement in Principle, also known as a Decision in Principle (DIP) or Mortgage in Principle, is a statement from a lender indicating that they would lend you a certain amount, based on an initial assessment of your finances. An AIP is useful when house hunting as it shows sellers that you are a serious buyer. However, it is not a guarantee of a mortgage offer, and further checks can lead to a decline.
Should I apply again if I’ve been declined for a mortgage?
No! This can damage your chances of success.
I see it so often when I am reading a client’s credit file that they have numerous credit searches from different mortgage lenders. I know from experience, there is not a chance that those lenders would have lent to them.
The more times you apply for a mortgage to lenders that leave a ‘hard’ credit footprint on your file, the less chances you have of being offered a mortgage.
Why was my mortgage declined after an agreement in principle?
One common reason is a failing credit score, the most annoying reason a lender can offer. On the day you applied you simply did not have enough points. You could apply tomorrow however, with the same lender, and pass because the lender has changed their point’s allocation. But there are ways to make sure you give yourself a better chance of passing. Have a look at the Boost Your Credit Score page on my website but here is one to remember when you are completing the mortgage application form.
The importance of filling out a mortgage application in full
Complete every single box or section on the form because every answer you give will be allocated a score. If you leave out a telephone number you may lose a point. Miss out a full three year address history and you will lose even more points. You will never know how many points you had, but give yourself the best possible chance by completing the form fully.
Finding Lenders for mortgage applications after a decline
Finding a home and applying for a mortgage can be a very stressful time, and nothing adds to that stress like having your application declined or rejected. But being refused isn’t the end of the road though.
Since 1986, I’ve helped people in your position to find a lender prepared to take another look at your application, putting you a step closer towards owning your own home or property.
Only a handful of subprime lenders currently operate in the UK property market, so you have to get your mortgage application right first time to avoid more rejection and refusals. And that’s where I can help.
The first step to doing this is finding out just why your application was refused?
How credit issues can result in a mortgage being declined
Before I can help you find a mortgage, we need to discuss your current financial situation. You’ll need to share your credit history and details of your income, and tell me how much you’re looking to borrow to finance your property purchase. Then we’ll look at why you were refused and find a way around it.
In my experience, the most common reasons for applications to be refused are as follows:
- Poor Credit Scores
- Existing Debt
- Bankruptcy
- County Court Judgements (CCJs)
- Debt Management Plans
- Defaults
- Debt Relief Orders
- Director Guarantees
- Individual Voluntary Arrangements (IVAs)
- Mortgage Arrears
- Payday Loans
- Repossessions
- Low Credit Scores
- Low Income/Small Deposits
All of these rejections have one root reason. Lenders don’t like to take any risks.
If you have a poor credit history, lenders won’t want to approve your mortgage. I’ll examine your credit history with you and if there is incorrect information that’s holding you back, I’ll show you how to correct it. Top tip is to dissociate yourself from a previous partner on your credit file.
If you’re already in debt, lenders may not want to add the burden of mortgage payments onto your stretched finances. I’ll help you to find lenders who may be more flexible in their underwriting criteria or help you to understand how to manage your debts so that lenders can see you can take on the responsibility of a mortgage. All this should give you a better chance of a mortgage in the future.
Many lenders are put off by issues such as CCJ’s, IVA’s and Bankruptcy – even if your CCJ was the result of an illness or redundancy leading to a missed instalment of your credit card bills. However, depending on the time since your issues, and the amount of money involved, I may be able to find a lender willing to approve your application.
The best advice I can give you is to be realistic about the mortgage you can afford. If you have a lower income or smaller deposit than your lender is looking for, your mortgage is likely to be refused. If your income is a barrier to the home you want, I’ll advise you on alternative lenders, and look at different kinds of mortgages.
No matter why your initial lender declined your mortgage, I’ll help you to find an alternative.
Information held on your credit file
The information held on your credit files is very important as lenders use these agencies to look at your credit history for the past 6 years. If you have been refused a mortgage and the lenders say ‘have a look at your credit file’ you can bet you have something adverse on there.
When you call me, it would help if you had a copy of your file to hand from Check My File – free for 30 days and then £14.99 a month and you can cancel anytime – which checks all three credit reference agencies. Its a good place to start to get an overview of your credit history. It may be that once I have identified a lender, we get copies of your credit file directly from the agency the lender uses to make absolutely sure your credit history is OK for that particular lender.
Why You Should Use a Professional Broker when a Mortgage is Declined After an Agreement in Principle
As a mortgage adviser, I am not limited to any single lender. This independence means I can act in your best interest, finding a lender who is likely to approve your mortgage application. I will begin with a no-obligation discussion to understand the reasons behind your rejected application and your current financial state. After evaluating your situation, I will provide an honest assessment of your prospects and assist you in preparing an application to a subprime lender.
It is crucial to get your application right because you typically have only one chance to avoid another decline. Fortunately, my extensive experience allows me to ensure your application has the best possible chance of being approved.
Take the Next Steps Towards Your Mortgage Approval
A mortgage decline after an Agreement in Principle does not mean your homeownership dreams are over.
Start your journey towards homeownership by calling 01494 526400 or 07949 713563 to discuss your mortgage needs. I am committed to making sure the next response you receive from a lender is “Yes!”
For more detailed information on how I can assist you after a mortgage refusal, please complete my online enquiry form.
Yes, you can reapply, but it’s essential to address the reasons for the initial decline first and ensure you get it right the next time. Immediate reapplications can harm your credit score due to multiple hard searches, and leaving a negative mark on your credit history. Improve your financial situation, and consider consulting with a mortgage broker who have access to exclusive and suitable lenders and help strengthen your application to get it right.
I recommend that you focus on improving your credit score as a whole by reducing any existing debt, and ensuring all your documentation is as accurate and complete as possible. Working with a mortgage broker who specialises in declined mortgages can significantly increase your chances of a mortgage by finding lenders with more flexible criteria and provide expert advice on presenting a stronger application.
Inform your lender about any changes in your financial situation, such as income, employment status, or significant financial outgoings. A professional mortgage broker can reassess your situation and help you find a lender that suits your current financial circumstances, ensuring a better chance of approval.
Yes, there are lenders that specialise in offering mortgages to individuals declined after an Agreement in Principle. These lenders often have more flexible criteria and consider applicants with adverse credit or other financial challenges. Consulting with an experienced mortgage broker can connect you with these lenders and improve your chances of getting approved.
Very fast efficient service – would recommend.
Hopson & Johnson – 3rd June 2024
Steve & Sue were professional throughout the whole proceed. Would have no hesitation in recommending their company.Hentschel – 29th May 2024
We experienced difficulty in finding our original mortgage and Steve and Sue were instrumental in helping us purchase our first home. Likewise, when it came to remortgaging 2 years later they were pivotal in finding us a suitable mortgage rate with a new provider.Henschel – 27th March 2024
Thank you to both Steve and Sue for all the hard work and patienceAnon – 22nd March 2024
Fantastic service as always.
Anon – 4th March 2024
Steven and Sue have been absolutely wonderful throughout the whole mortgage application process. Even when we were unsuccessful with our first application which left us panicking, Steven remained calm and professional, informed us there were plenty of other options and worked quickly on a new application suited to our needs. Steven would answer his phone efficiently and if he missed us, he would call back immediately, something which can be quite rare these days. We would recommend Steven and Sue to anyone that maybe struggling with the whole mortgage process, especially the self employed, they took all the stress from us and deserved every single penny we payed them. We will absolutely be returning to Steven and Sue in the future and only wish we had found them sooner. We found them to be invaluable and an absolute pleasure to deal with, they are the reason we can finally sleep well at night! Thank you both again.Oldham – 22nd February 2024
Helpful and helped us in finding mortgage with suitable interest rates given our adverse credit at the timeKunda – 15th February 2024
I have used Steve twice now and both times he has been professional and has always listened to me, which was very reassuring when I was considering not buying anymore and giving up on the process.Anonymous – 6th February 2024
Steve and Sue have been fantastic, they worked hard to get our application pushed through before Christmas and were on hand and very responsive to any questions that we had regarding our mortgage application. I would highly recommend.Martin – 2nd January 2024
I have felt very well looked after throughout this process, and advocated for, to meet my individual financial needs. The communication between Steven, Sue and I has been of the highest standard, and I could not have asked for more. I was treated without prejudice, and with understanding, and I am so happy that I have been able to buy a home which my daughter and I can now settle into, and start a new chapter. Thank you so much Steven and Sue!Hentschell – 21 November 2023
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