Written by Lee Trett Reviewed by John Tarazi
Sources
5 August 2026
Updated lender criteria and added useful links
2 October 2024
Rewrote entire article in line with latest market conditions and criteria
7 September 2020
First Published
If you’ve been declined a mortgage for a property you’re trying to buy, don’t panic, you’re not alone. Rejections are relatively common, but your next steps are absolutely crucial.
Here we cover the reasons why your mortgage application might get denied, what to do if you’ve been rejected, and where to get support to prevent any further unnecessary refusals.
Common reasons mortgages are declined
There’s no one-size-fits-all reason why any particular mortgage application gets denied, but here are some of the most common instances of mortgage refusal:
Affordability
When assessing your finances, a lender might conclude that you couldn’t comfortably afford the mortgage payments. This could be due to your income, outgoings, or failing a stress test to cope with future interest rate rises.
Credit issues
If you have adverse credit (perhaps due to late payments, CCJs, or another reason), some lenders will view you as high-risk, potentially leading to a mortgage being declined. Lenders might also be hesitant if you have a low credit score or a recent credit history showing multiple borrowing applications. However, there are lenders comfortable with complex or bad credit.
Existing debt
If you’ve got a high debt-to-income ratio due to outstanding loans or credit card debt, this can lead to a mortgage rejection. Lenders might also decline a mortgage if your statements show erratic spending patterns or regular gambling habits.
Employment history
Typically, most lenders prefer stable, long-term careers. If you’re self-employed or a freelancer, some lenders won’t be willing to offer a mortgage or will have stricter eligibility criteria. Also, inconsistent income can be an issue for lenders. For example, if part of your income comes from commission, overtime or bonuses - some lenders won’t include it.
Deposit source
Lenders should be clear about any minimum deposit requirements, so this shouldn’t be a reason for a declined mortgage unless you’ve ignored this. However, some lenders may reject a mortgage application if they’re uncomfortable with your deposit source (for example - gifted deposits, using a personal loan, or profits from cryptocurrency).
Property issues
It’s fairly common for a mortgage to be declined due to issues arising from a valuation survey. For example, if the official valuation from the lender’s surveyor is below your offer price, the lender may not be willing to let you borrow the amount you need - this is known as a down valuation.
Other reasons
It’s important to understand that sometimes mortgages can be declined due to something simple like failure to register on the electoral roll or even refusal with no reasons given.
So it’s well worth getting advice from an independent broker who can evaluate the details. They’ll find out what went wrong and discover the specific reason your mortgage application was rejected.
What to do if you’ve been rejected for a mortgage
Here are some straightforward steps to follow if your mortgage application has been declined:
Speak to an expert and find out why: Your lender may not provide any reasons for the rejection. Getting support from an experienced mortgage advisor means they can review all your details and discover the obstacles or problems that led to your mortgage refusal. It could be something as simple as human error or a mistake on your credit file.
Fix the issues: It may be the case that your broker spots what went wrong and they can advise you on the steps to rectify things. If the reason for the refusal was credit-related, it can take a few months for your credit reports to reflect any improvements.
Speak with the right lender: There might be no underlying problems with your application and it could simply be that you didn’t approach the right lender for your circumstances. After reviewing all your details and property purchase plans, your mortgage advisor will be able to introduce you to the right lender to deal with.
If you want to have a free, no obligation chat with one of our skilled brokers, get started below:
We can help you revive your mortgage plans
How soon can you re-apply?
If you’re wondering how long to wait after your mortgage was declined to apply again, the truth is, you can re-apply straight away if you want to. As a ballpark figure, waiting around 3 months can be helpful to let any issues partly wash from your credit file. However, reapplying quickly is often not advisable.
If you don’t know why you’ve been rejected, or haven’t taken the steps to rectify any issues, you’ll likely end up with another mortgage refusal - which can compound your problems. You can overcome one declined mortgage, but if you continue to apply for loans, you’ll have multiple hard searches on your credit file, and this can make borrowing extremely difficult.
So, before you make any more applications, take the time to find out what went wrong to avoid another rejection. The best way to do this is with the guidance of an expert mortgage broker. They know exactly what each lender is (and isn’t) looking for in an applicant. They’ll assess your situation and introduce you to the right lender to help avoid further unnecessary marks on your credit file.
Stages when a mortgage can be declined
Here are some examples of stages in the house-buying process where you might get rejected and what your next options are:
|
Application stage |
What to do next |
|
After an offer has been accepted |
Anyone can make an offer on a house, even without an agreement in principle (AIP). So it’s easily possible to get declined after an offer. Take the time to get all your paperwork and details in order and speak to a mortgage expert. |
|
Declined after agreement in principle (AIP) |
Take another thorough look over your credit file and your affordability details. Your broker can review your AIP to identify hurdles, and they may get you to reapply with another lender. |
|
Mortgage declined by an underwriter |
If you’re declined at the underwriting stage, the issue might be linked to the property or your financial history. Your broker can dig into your credit file and finances, or explore more flexible lenders. |
|
After the lender’s valuation |
If you’ve been declined after a valuation, it’s likely to do with the property or the offer price. You may need to get the asking price lowered or increase your deposit. You could also appeal the valuation or get another valuation from a different lender. |
|
Before completion |
It’s rarer to get declined right before completion (or in the latter stages). Usually, it means your financial circumstances have changed. You can ask for a review or try to appeal if you don’t understand the withdrawal of the offer, but your advisor can help find an alternative solution. |
Can a mortgage offer be withdrawn?
Yes, an offer can be withdrawn by a lender for several reasons. It depends on what stage you’re at in the home-buying process, but the most common reasons for withdrawal of a mortgage offer are usually related to:
- The property: A lender might withdraw its mortgage offer if issues arise after a survey or valuation (perhaps due to concerns around the home’s value, the construction, or ground rent and service charge contracts).
- Changes to your finances: If you lose your job, are made redundant, take on lots of new debt, or your income drastically drops - the lender might reconsider your mortgage offer
- Inaccurate information: If you’ve not provided accurate details about your finances (like inflating your income or hiding debt) the lender can decide to withdraw a mortgage offer.
Reasons specific lenders decline mortgages
Although the reason for your rejection can be unique, there are some common reasons why lenders decline mortgages. Certain high street lenders and banks tend to decline mortgage applications for more minor issues than specialist lenders, however, each has their own specific criteria.
To find out what to do if you've been declined by a specific lender, you can check out our dedicated pages, such as:
- Mortgage declined by Halifax
- Mortgage declined by HSBC
- Mortgage declined by Santander
- Mortgage declined by Leeds Building Society
If you have been declined for a mortgage, whether or not they are on the list above, an expert mortgage advisor can help you look at why this might be. However, it's always best to ask the lender directly why they have declined your application, as this can make it easier for specialist brokers to source a lender with criteria more suited to your circumstances.
How we can help if your mortgage has been declined
Getting declined at any stage of the mortgage application process can feel pretty devastating, but it doesn't have to be the end of your home-buying journey. One of our expert brokers can evaluate where things went wrong and put you back on the right path to make your house purchase a reality.
They’ll advise you on improving your credit, presenting your finances more attractively, dealing with any property-related obstacles, or finding a more suitable lender. You can be confident that our advisors will be focused on finding the solution you need.
Here are some more of the reasons people choose our brokers if their mortgage has been declined:
- Our brokers specialise in mortgage rejections at every stage
- Your first chat is free with no obligation to proceed
- We are 5-star rated on leading review sites
- To prevent any further mortgage refusals
Ready to take advantage of a free, no-obligation chat with an expert broker who specialises in declined mortgages? Get started here.
FAQs
Yes, but perhaps not in the way you’d imagine. Your credit report will show that you’ve applied for a mortgage with an initial soft search to check your eligibility, and then a hard check from the lender when the underwriters review your full application.
The credit report itself won’t show you’ve been rejected. But, if you apply again, another hard search will take place. Doing this repeatedly impacts your credit report and score, making future lenders hesitant and potentially labelling you as high-risk.
So if you’ve been declined a mortgage, it’s best to get an expert broker’s help to prevent further unwanted searches or marks on your credit file that could impact your ability to borrow.
Yes, especially if it’s recent, but it depends on the circumstances. Payment holidays during Covid 19 were fairly common and widely accepted, but some lenders might still view it as proof of financial instability.
Whether a mortgage is declined due to payment holidays can depend on the length of the payment holiday, whether you’ve got multiple gaps, or if there are missed payments after the break.
Yes, you can get declined even if you’re an existing customer with a lender and looking to switch mortgage products. The reason might be that your financial circumstances have changed since your original approval.
Lenders will want to reassess your affordability and recent credit history, which can lead to a rejection if it’s not managed properly.
Unfortunately, yes. It depends on the particular contract but if a lender thinks ground rent or service charges are too steep (or they could rise significantly), they may be cautious and unwilling to offer a mortgage because it will impact your affordability in future years (in the same way that rising rates could).
Ground rent and service charges can also affect the home’s value as collateral for your mortgage. Your prospective lender will scrutinise and comb through any documents relating to ground or service charges and could decline a mortgage if they spot something they’re uncomfortable with.