Have you ever wondered why my mortgage did not approve?

Are you thinking of applying for a mortgage? And concerned whether you might get declined?  Applying for a mortgage is probably one of the biggest financial commitments you will ever have. This means that the lender will need make sure your not a threat for them lose to money on. In the blog this week we will be exploring a few reasons behind why your mortgage may get rejected and what you can do to avoid it.

As much as many mortgages are getting approved, many are also getting rejected. Which is devastating to find out. This may even have an impact on your credit score further.

  1. Poor credit history

Managing debt is key.  On your credit report it will show whether you have any late payments or missed payments. This is a big issue for the lender as it shows you’re incapable of keeping up with payments on any current or previous credit agreements. A numerous amount of missed payments could even result in a default. However some lenders still accept a few missed or late payments and there are still specialist lenders that accept defaults.

  1. Earnings

Managing your income and outgoings. The income must be declared honestly with the lender. With outgoings if you have committed expenditure or any credit agreements these impact the maximum mortgage loan you can take out.

  1. Pay day loans

Any pay day loans over the last 6 years will be listed and also shows you’re unable to manage your incomings and outgoings. However you may have a satisfactory reason and not all lenders will take turn you down for having a payday loan in your credit file.

  1. Property you are purchasing

Sometimes the reason your mortgage gets declined could actually be down to the property your are purchasing and not anything to do with you. The property is reassurance for the lender to get the money back they are lending you. The reason on decline could be due to the property value isn’t enough for the mortgage being applied for.


If you have been refused by a lender, it’s not the end of the world and doesn’t necessarily mean you’ll be declined by all lenders. As all lenders have different criteria’s. This is where using a mortgage brokers is an advantage and they’ll be able to assess your personal circumstances and match it to the lender’s criteria.

Please don’t hesitate to contact Rosebank mortgage brokers today to discuss your personal circumstances and see if we can assist you.