fbpx

What to Do When Your Mortgage Application is Declined Due to Financial Association

13 February 2024

Have you recently applied for a mortgage and received the disappointing news that your application has been declined due to a financial association? It can be disheartening, but don’t worry, you’re not alone. Many people face this hurdle during their mortgage journey. The good news is that there are steps you can take to overcome this setback and increase your chances of getting approved. Let’s dive in!

Understanding the Reasons Behind the Decline

When a mortgage application is declined due to a financial association, it means that the lender has identified a connection between your finances and another individual’s finances that raises concerns. This could be a joint bank account, a shared loan, or even being listed as a financial guarantor for someone else.

 

To address this issue, it’s important to understand why the lender sees this as a potential risk. Lenders want to ensure that you have the financial stability and ability to repay the mortgage on your own. They may be concerned about the impact of the other person’s financial situation on your ability to meet your mortgage obligations.

Colourful terrace of houses

Seek Professional Help

 

If you’re unsure about the specific details of the financial association that led to the decline, it’s a good idea to seek professional help. A mortgage broker, like Hudson Rose, can review your application and provide guidance on how to address the lender’s concerns. They have the expertise to navigate complex financial situations and can help you find alternative lenders who may be more flexible in their policies.

 

Improving Your Chances of Approval

 

Now that you have a better understanding of the reasons behind the decline, let’s explore some steps you can take to improve your chances of getting approved for a mortgage:

 

  1. Review Your Credit Report: Obtain a copy of your credit report and check for any errors or discrepancies. Dispute any inaccuracies and ensure that your credit history reflects your financial responsibility.

 

  1. Build a Strong Financial Profile: Focus on improving your financial situation by paying off debts, reducing credit card balances, and demonstrating a consistent savings pattern. This will show lenders that you are responsible with your finances.

 

  1. Minimize Financial Associations: If possible, consider severing any financial associations that may be causing concern for lenders. This could involve closing joint accounts or removing yourself as a guarantor for someone else’s loan.

 

  1. Save for a Larger Deposit: Increasing your deposit can help offset any perceived risks associated with the financial association. Lenders may be more willing to approve your application if you can demonstrate a higher level of personal investment in the property.

 

Seek Alternative Lenders

 

If your mortgage application has been declined due to a financial association, it’s important not to lose hope. Different lenders have different policies, and what may be a concern for one lender may not be an issue for another. A mortgage broker can help you identify alternative lenders who may be more open to approving your application.

 

Hudson Rose Team pet a dog outside their office in Cheltenham

 

While a mortgage application decline due to a financial association can be discouraging, it’s not the end of the road. By understanding the reasons behind the decline and taking proactive steps to address them, you can improve your chances of getting approved for a mortgage. Remember, seeking professional help from a mortgage broker like Hudson Rose can make a significant difference in navigating this complex process.

 

If you’re ready to explore your options and find a mortgage solution that suits your needs, don’t hesitate to contact Hudson Rose. Give us a call at 0330 122 9920 or email us at hello@hudson-rose.co.uk. Our team of experts is here to guide you every step of the way.

 

For more helpful info from the hudson Rose team, try these blogs

How to improve your credit score: a 30-day guide

Getting a mortgage on a property that has an annexe

Protect your family with Family Income Benefit Insurance

 

 

 

Let's get a date in the diary...

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Hudson Rose Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Hudson Rose Services Ltd, trading as Hudson Rose. Registered Office: 7 Bridge Street, Nailsworth, Stroud, GL6 0AA
Registered Company Number: 11008147 Registered in England. FCA 799302

Hudson Rose Services Cirencester Ltd, trading as Hudson Rose. Registered Office: 78 Dyer Street, Cirencester GL7 2PF Registered Company Number: 13349772 Registered in England

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £499. There is no charge for any initial consultation.

Your Home may be Repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Not all forms of Property Development Finance are regulated by the Financial Conduct Authority

Copyright 2024 - Hudson Rose Services Limited