Who We Are
Robin Mortgage Design is a whole of market mortgage & protection brokerage. Mortgage brokers who are whole of the market have access to the largest pool of mortgage providers such as banks, building societies, and pure mortgage lenders. When you choose us, you’ll be treated as an individual from the very start. We’ll take the time to understand your situation and propose suitable options for your mortgage & protection needs.
On this page, we’ll share information to help you if you’ve had a mortgage declined and cover how you could get back on track and prepare for your next application. If you’d like to speak with an actual human at any point, then we can get you in touch with your personal mortgage consultant who will be on hand to guide you through every stage of your journey.
Had your mortgage declined?
If you've had a mortgage declined, you'll probably be feeling worried and wondering if it's even possible to get a new mortgage.
Here at Robin Mortgage Design, our community of expert mortgage advisers will be able to let you know what your next steps are. There are many reasons for having a mortgage declined, so try not to worry too much as there is a good chance alternative options may be available.
Mortgages can be declined for many reasons and just because you’ve been declined a mortgage once, it doesn’t mean that you won’t be able to get one in the future. Here are some of the most common reasons for having a mortgage declined:
- Bad credit
- Little or low credit history/credit score
- The loan amount applied for isn’t affordable
- The property doesn't meet lenders requirements
This list doesn’t cover all the possible reasons for a decline, but they are the most common. There are a couple of things you can do to help you understand why your mortgage was declined.
Ask your mortgage adviser: Whether you’ve been to a bank or a mortgage broker, they are there to help secure your mortgage and should be kept in the loop on the progress of your application and understand the lending criteria. If your mortgage isn’t able to proceed then they should have some insight as to why.
Review your credit file: Your credit profile is your digital representation of your finances. Your credit file holds information about your address history, electoral role information, credit information, and payment history. The information held on here is what lenders use to work out if you fall within their lending appetite.
Have you provided all the information? Mortgage advisers can only help if they fully understand your situation. Make sure you’ve provided all the documents and information required and that your broker understands all about your finances, circumstances, and the property
Mortgage declined due to a low credit score?
Your credit score is a number determined by the lender that takes into account a lot of different information. This includes:
The level of debts you hold
The conduct of those debts
Are you in the voter’s role?
Do you have any County Court Judgements, Defaults, or other bad credit?
The level of deposit you hold
Joint or sole application
Time in the UK
Ultimately, there may be many reasons why your mortgage was declined due to credit score as every lender has their own way of scoring an application.
The good news though is that some lenders won’t credit score you. Although they’ll look at your application on its own merits, they will still look at your credit conduct. In this instance, it’s best to get a copy of your credit report and share this with your adviser at the early stages of your discussions. This will help them to find the best way forward for your circumstances.
How do I increase my credit score?
Well, that's a very good question and one we get asked often. Although the answer is very personal to each and every person, we have listed some of the things you can do:
Register to vote. This can be a quick win for your credit profile and is very simple to do through your local council.
Make sure your personal details are up to date.
Avoid the use of payday loans, these are typically high-interest short-term loans.
Don’t use all the credit available to you. Having a high usage of your available credit can have a negative impact on your score.
Pay off where possible any late or missed payments.
Pay off where possible any defaults or other adverse credit.
Check to see if you are financially associated with anyone else as their credit profile can impact yours.
Sometimes your credit score may be low as you haven’t had any credit in the past. If this is you, don’t panic. There are lenders that won’t credit score. Speaking with a whole market mortgage broker can be a great solution to helping you get the right mortgage.
I have adverse credit can I still get a mortgage?
If you have adverse credit, there could still be options, but this really does depend on your credit history. The best thing you can do is to seek advice from a mortgage adviser and gain access to your credit report. Your dedicated adviser will then be able to let you know your options and when you'll be able to get a mortgage. There are specialist lenders that can help in certain cases, but there are no guarantees.
Here are some of the considerations if you've got a tainted credit history:
Bankruptcy and Individual Voluntary Agreements (IVAs) are widely acceptable once they’ve been discharged for 3 years. If you have a larger deposit to put towards a property, then other options may be available if they were discharged more recently than 3 years.
Debt management plans are widely accepted as long as they’ve been in place for 12 months or more and you’ve conducted the account excellently.
Defaults and CCJs are widely accepted, however, there are many different solutions and options here. So even if you have something outstanding, lenders are willing to take a look.
Missed payments are widely accepted but it does depend on what the missed payments were for, the reason for the missed payments, how many payments have been missed and how long ago they were. Typically, lenders prefer your payments to be no more than two months behind without needing to look at more specialist mortgage products.
Payday Loans are widely accepted if they were paid off over 12 months ago. They can be frowned upon when applying for a mortgage as they are considered a last resort option for borrowing. In all cases, the lender would need to understand why the loan was taken out.
Whatever situation you’re in when it comes to bad credit, it’s always best to get advice from a mortgage advisor, ideally someone who is able to review all your options by searching the whole market.
Mortgage declined due to property type
Property is fantastic; it comes in all shapes and sizes, designs and materials and can be brand new or 400 years old. While each property will have its own reason for standing out to you, lenders want to make sure that they are happy to lend on it.
Once you've found your lender and submitted your application, they’ll carry out a mortgage survey on the property. Depending on the result, they may decline a mortgage because the property doesn’t meet their criteria. There are many reasons for this and the key is knowing why. Once you know, your mortgage adviser may be able to find a new solution.
Common reasons for property declines
Leasehold properties with short leases: If you’re considering buying a leasehold property, then you’ll need to consider the term left on the lease. Generally speaking, 80 years or more will normally be OK, but less than 80 years will start to have an impact on your lending options. If you’re buying a property with a short lease, you might want to consider negotiating a lease extension for completion.
Down valued: It’s not uncommon for a surveyor to downvalue your property. They tend to use sale price data for the surrounding area and will match the property to these.
Non-standard construction: This is a rather large topic but put simply if the property you are buying isn’t made from bricks or stone with a tile or slate roof, then the property may be considered non-standard. For example, a timber barn conversion or a modern eco house might require a more specialist lender.
Ex-council: These houses are typically renowned for being strong, solid houses but not every lender will consider them.
Lots of land/ stables/ multiple buildings or part commercial: Again, while this section is rather broad if you’re considering a property with lots of land, stables or kennels, outbuildings, Annexes, or an element of commercial, you may find it harder to obtain a mortgage. The are many reasons why properties like this can require more specialist lending, so it’s always best to seek advice.
What happens next?
Once you've found your lender and submitted your application, they’ll carry out a mortgage survey on the property. Depending on the result, they may decline a mortgage because the property doesn’t meet their criteria. There are many reasons for this and the key is knowing why. This will normally be identified by the valuation report and communicated to you through your adviser.
There are many lenders that will consider a variety of property types but the key is knowing where to look. With so many variations in lenders criteria and construction methods, choosing a whole of market mortgage broker could save you a lot of time.
It's important to remember that if the property is rather unique, or has a defect, the result can sometimes rely solely on the valuer’s comments, which can yield mixed results.
Mortgage declined due to type of income
As with everything, income is assessed differently by each lender. Although there is some common ground for people who are employed full-time, been in their job for a while and their income is steady with no changes etc. If this isn’t you, it might be more useful to approach a variety of lenders and not just the one.
To help break this down, let’s look at a couple of case studies:
The sales executive: A typical person working in sales will tend to be offered commission or bonuses if they make a sale, so income can be variable. Depending on the lender, this type of income can still be used if earned for 2 years, 1 year, 6 months or 3 months and the amount is between 50 & 100%. How they calculate the total amount can vary. In this type of situation, it's common to search for a lender that will average and use 100% of the calculated income.
Self-employed with only 1-year accounting history: It’s becoming more common for people to set up on their own or work for others on a self-employed basis. While this may suit your lifestyle better, it could impact you getting a mortgage. Most lenders will require 2, if not 3, years of trading before considering you for a mortgage. If you only have 1 year of accounts, you may find it more difficult. But don’t worry, there could still be plenty of options for you.
Lenders will also want to know about your outgoings to see if the loan you’ve applied for is affordable. Even if it fits nicely into your budget planner at home, unfortunately, it doesn’t mean that the lender will come to the same conclusion.
Without knowing each lender’s criteria and what they will and won’t accept, it isn't surprising that affordability is a common reason for having a mortgage declined.
I've had my mortgage offer withdrawn and I'm about to complete
Having a mortgage offer taken away is rather rare, but unfortunately, it can happen. In the period of time between having a mortgage offered and completion, you're under obligation to make the lender aware of any changes in your circumstances. The lender reserves the right to complete a new credit check before completion, so if something has been flagged up or the solicitor hasn’t been able to satisfy the conditions on the mortgage offer, this may cause the lender to pull the mortgage completely.
If you’ve had a lender retract their mortgage offer at the last minute, then you need to speak with a mortgage adviser as soon as possible. They can then establish what went wrong and why and look at alternative lenders to get you back on track.
Here is our simple 8 stage guide on the process of buying a home
If you are considering the purchase of a property, you should always seek advice from a qualified mortgage adviser. They will guide through the process and make a recommendation based your preferences and affordability. This is always a great first step to ensure you can view properties with confidence.
A decision in principle is the first step to getting a mortgage. At this stage, lenders will evaluate your finances and credit history to be sure you can support the mortgage. Once agreed, you can then move to the next step of the process. The decision is not a guarantee of a mortgage, as you are still subject to underwriting and a valuation on the property, but it is definitely a positive step.
Now you have approval for the mortgage, you can start to seriously consider the properties you want to buy. Once you’ve found the one, you can make a formal offer to the agent who is selling the property and provide your agreement in principle to show that you are able to proceed. If your offer is approved, let your mortgage adviser know.
Your adviser will now review the mortgage and protection options again and once you are happy, will submit the application to the lender on your behalf. During the application process, there may be some fees payable, such as the cost of a valuation. At this stage, your adviser can instruct a conveyancer on your behalf, if you haven't appointed anyone.
At this step of the process, the lender will review all your information to make a formal decision on whether or not to offer the mortgage. You will need a valuation to be carried out, which the lender will arrange, but you can upgrade this if you would like a more in-depth report. This process can take anywhere from a couple of days to a couple of weeks, but you should be kept up to date with the progress throughout.
This is a really exciting step for any buyer and a positive step closer to owning the property, as the mortgage provider has agreed the requested loan. You’ll now be provided with an offer document and copies will be sent to all the relevant parties. The mortgage offer will generally be valid for 3 to 6 months and can usually be extended if required.
Behind the scenes your chosen conveyancer will be doing all the legal searches on the property, liaising with your lender, our team and the vendor’s conveyancer. They provide a hugely important part of the process, so it’s always best to choose someone you can trust. If you are unsure about which conveyancer to use, please let us know and we can recommend someone from our trusted network.
The exchange of contracts is the final commitment when purchasing your property and usually only takes place when the whole chain is ready and all legal work is complete. You’ll agree a completion date, which can be simultaneous or at a later date, and then finally you complete! This is when you pick up the keys to your brand-new home.
Why use a mortgage broker?
This is a really good question. Like most occupations, people can be very good at what they do with some being the ‘Jack of all trades'. But normally, if you want something doing you choose an expert. A mortgage broker is no different.
Mortgages and associated services are what we do, and we have the experience, knowledge, and qualifications to help secure your mortgage from the whole of the market, not just a select panel, like some agents, comparison sites, and single ties such as banks.
So, if you’d like honest, unbiased advice, suited solely to you, then a mortgage broker is just what you need.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE
The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.
Not all forms of mortgage lending such as certain Buy to Lets are regulated by the Financial Conduct Authority along with some additional related services, such as Conveyancing. A full disclosure document will be provided to you.
If you are considering securing additional debts against your home: Think carefully about securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
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*some services are by provided as a referral to a third party company. No personal information will be shared with such companies without your prior permission. Robin Mortgage Design have no control over these companies and cannot be held accountable for their service or advice.
Robin Mortgage Design is a trading style of Robin Partnership Ltd whom is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. The registered Office of Robin Partnership Ltd is 22 South Street, Castlethorpe, Milton Keynes, Buckinghamshire, MK19 7EL. For more information please refer to the FCA register https://register.fca.org.uk
Robin Mortgage Design charge a broker fee which is only payable on mortgage offer. The precise amount will depend upon your circumstances however a typical fee is £395.00 and the maximum that could be charged is £1,495.00