One of the questions we get asked a lot is in relation to how successful a Mortgage application will be.
As a Mortgage Broker who tends to specialise in helping First Time Buyers and people who have poor credit, it is not unsurprising that there is a fear a Mortgage application will be unsuccessful.
You may have been declined elsewhere (either direct or via another broker) or you may have read in the papers how difficult it is to get a Mortgage nowadays or even read bad stories on the internet. It is not unusual to be concerned about the application process. Instead, you should have a read of these links – success stories and some of our reviews – in addition to the rest of this post and then get in touch to have an open and frank conversation about your situation and chances of success, one thing I can promise is that we will not give you false hope.
Honesty is the best policy
One of the things that we always ask is that customers are open and honest with us. It is important to remember that we (Mortgage Success) are on your side. We want your Mortgage to be accepted just as much as you do.
The more we know about your circumstances and your credit history the better. When we go off to do the research, we base it on what you tell us. If you think there was an issue 5-6 or even 10 years ago, even if we do not specifically ask – tell us. We will decide if it is important or not but we would always prefer you to give us war and peace over the bare minimums.
Do not think “it has dropped off my credit report so it does not matter”. Some lenders can be like an elephant and never forget. There are some Mortgage lenders who may have internal records going back further than your credit report so it pays for us to have all the credit history, no matter how bad or how long ago it was, so as to avoid any surprises later down the road.
We try to mitigate these issues by getting a copy of your credit report upfront, but that only shows the last 6 years and may not be 100% correct. If you tell us about things that may not be on your report but could be a problems, we can avoid lenders where it may be a problem and in turn save time and a wasted credit check on you… honesty is the best policy is the best all round.
As we deal with quite a number of applications each year it is not unheard of that we do have declined applications. In 2017 and 2018 we had less than a handful of declined cases. Some of those were down to customers withholding information or not being aware of certain problems. Others were through lenders being unhappy with a case, there are various reasons why an application can be declined but thankfully it happens on such a small percentage that you should not worry about it (easier said than done!).
Of those that were declined, we still managed to place the vast majority with another lender once we found out about the problems and there was only 1 application in 2018 that I can think of that we were unable to place – which was due to a customer unfortunately giving us incorrect information.
I should not worry then?
In a word, no. Provide the information we ask for as openly and honestly as you can. If there is something you think is important but we do not bring it up, tell us. If you do that, the chances of your application being declined is very very slim.
If we think there is a possibility your application will be declined, we will tell you upfront. The last thing we want is to build your hopes up and then have to give you the bad news.
If we think your application is unlikely to be accepted at this point in time, we will tell you. There are 3 reasons for this:
- It reflects badly on us to tell you we can get you a mortgage and then be unable to help.
- We only get paid if you get a Mortgage – we are not here to waste your time or ours (not to sound mercenary).
- We do not want to waste your time and submit an application we are sure will be declined, only to add another credit search on your file. We would rather give you some practical advice to improve your credit score and come back to us when your chances are more in your favour.
As mentioned, if we can not help you now, we will tell you what needs to be done in order to improve your chances of success.
What should I do to improve my chances or acceptance?
Get in touch. Having an experienced broker on your side will help no end, especially if there have been complications in your past. As mentioned above, be open and honest.
Lastly (and most importantly), hold your breath and cross your fingers and toes – we all know that works 🙂 – and you should be fine.
And enjoy it, your buying a new home! Its an exciting time, lets have a laugh along the way, you can relax as you are in good hands with us.