Help! I’ve been turned down for a help-to-buy mortgage, what can I do next?

March 2, 2021
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The help-to-buy mortgage scheme is designed to help more people get on the property ladder, so it can be frustrating if you are turned down. If a lender turns down your application, this will prevent the sale from going ahead and you could lose out on your dream home. Such as the help to buy equity loan being declined. The good news is that being rejected by one lender does not mean that all lenders will reject you. Often, you just need to find the right lender with the right approach to help put your dreams of owning a home back on track.

The pool of lenders that will deal with help to buy applications is smaller, but by working with Niche Mortgage Info, you’ll have access to valuable insight for all of them. This means you could be in with a better chance of securing a mortgage by working with the right broker.

How Niche Mortgage Info can help with declined mortgage applications

Our brokers have experience dealing with many unique and challenging mortgage applications. There may be a difficulty with your application that even you aren’t aware of. Our team will help to dig out these issues to put you in the best possible position. This includes:

  • Self-employed workers with just one year of accounts
  • Foreign nationals on Tier 1 or 2 visa
  • Multiple income streams
  • Income from shift, car and large town allowance
  • Income from tax credits
  • Income from bonuses and commission
  • Securing mortgages above 4.5 income multiple
  • Gifted deposits
  • Arrears on personal loans and other credit issues
  • Missed payments on phone contracts, credit cards or catalogue cards

There are more serious credit report issues that can make it more difficult to secure a help-to-buy mortgage. These include:

  • Mortgage arrears. If you miss 1 payment in 12 months or 3 payments in 36 months this will reflect badly on your application.
  • CCJs. If you have 3 CCJs of any value, this can detail your application.
  • Defaults. Lenders may reject your application if you have 5 or more of any value on your credit report.
  • IVAs. If you are on a debt management plan, whether active or satisfied, this can prevent you from securing a mortgage.

There are also common issues with the type of property you would like to purchase. A less experienced broker, or working without a broker, can lead you to apply to the wrong lender. Some lenders will not consider:

  • New build blocks of flats that are up to 20 storeys.
  • New builds flats above commercial premises.
  • New build flats with a non-standard (NHBC) warranty.

If you are struggling to secure your help-to-buy mortgage, Niche Mortgage Info can help. We have helped countless first-time buyers over the years to get on the property ladder.

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Niche Mortgage Info is a guidance website and introducer and is not regulated by the FCA. All of the advisers we partner with work only for firms who are authorised and regulated by the FCA and specialise in a number of different fields. They will offer any advice specific to you and your needs. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice.

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