Mortgage refusals can be a stressful experience. You may have gone through the entire process of getting your mortgage pre-approved, and then receive a call from your lender saying that your mortgage has been declined. What went wrong? In this blog post, we will take a look at the latest mortgage refusal statistics and try to figure out why so many mortgages are being declined these days.
Why are mortgages declined?
There can be a number of reasons why your mortgage application might be declined. Your lender may have found some red flags in your credit history, or they may not think that you will be able to afford the monthly payments on the property. In addition, recent changes to mortgage rules and regulations mean that lenders are now required to take a closer look at your finances and make sure that you can actually afford the mortgage.
What are the latest mortgage refusal statistics?
According to a recent study by TransUnion, one in every ten mortgages was refused in 2017. This is up from one in fifteen mortgages that were refused in 2016. So what’s causing this increase in refusals?
There are a few possible explanations. First of all, as we mentioned before, lenders are now required to take a closer look at your finances before approving your mortgage. This means that they are more likely to find something that could disqualify you for the loan. In addition, the study found that more people are applying for mortgages with alternative lenders, such as credit unions and private lenders. These lenders are often stricter when it comes to approving mortgages, so you’re more likely to be rejected if you apply through them.
What can you do if your mortgage is declined?
If your mortgage application is refused, don’t panic! There are a few things that you can do to try and get your mortgage approved. First of all, you can ask your lender for a letter of explanation. This letter will explain the reasons why your mortgage was declined, and it may help you to fix the issues that were found in your credit history. You can also try applying for a mortgage through a different lender. There are plenty of lenders out there, so you’re bound to find one that will approve your application.
How can I improve my chances of getting my mortgage approved?
There are a few things that you can do to improve your chances of getting your mortgage approved. First of all, make sure that you have a good credit history. Lenders will look at your credit score and make sure that you haven’t missed any payments or maxed out your credit cards. You should also try to save up a bigger down payment. This will show the lender that you’re serious about buying the property and that you’re not just trying to get a mortgage for the sake of it.
Finally, make sure that you fully understand the terms of the mortgage. Lenders are now required to provide more information about mortgages, so make sure that you understand everything before you sign any paperwork.
If you follow these tips, you should have no problem getting your mortgage approved. Just remember to stay calm if your application is initially declined – there are usually ways to fix the issue and get your loan approved.
Conclusion
In this blog post, we looked at the latest mortgage refusal statistics and tried to figure out why so many mortgages are being declined these days. We found that one in every ten mortgages was refused in 2017, up from one in fifteen mortgages that were refused in 2016. There are a few possible explanations for this increase, including stricter lending rules and more people applying for mortgages with alternative lenders.
If your mortgage application is declined, don’t panic. There are a few things that you can do to try and get your mortgage approved. First of all, you can ask your lender for a letter of explanation. You can also try applying for a mortgage through a different lender. Finally, make sure that you fully understand the terms of the mortgage.
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