Having trouble getting your re-mortgage application approved? 5 ways to improve the odds of success

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The fall budget announcement triggered an increase in remortgage applications across the UK. Amid the government’s plans to fight inflation, it has been revealed that UK mortgage holders should expect a significant increase in the interest rates they pay.

How Have Mortgage Creditors Responded?

For many, the revelation that mortgage payments are likely to increase has only added to existing concerns about the steadily rising cost of living. Currently, the rate of inflation in the UK is at 2.9%, and many believe that prices may soon reach their level the highest levels in 30 years.

Due to the rising cost of living, many homeowners are now rushing to remortgage their properties. However, Norton Finance has estimated that 10% of remortgage seekers will be denied the first time.

Why can a re-mortgage request be refused?

Many are quick to blame a denied application on overly strict loan criteria. While it is true that mortgage lenders have tightened their criteria since last year, applicants are also responsible for unsuccessful applications.

It is likely that your financial situation has changed since you originally obtained your current mortgage. You may have racked up new expenses, lowered your credit rating, or even started a new career. For this reason, your remortgage application may need to be tweaked.

Read our guide to the top financial mistakes that could hinder your mortgage application for more information.

How can you improve your chances of success in remortgage?

The experts at Norton Finance presented five ways homeowners can increase their chances of successful remortgage. The company said that by following its guidelines, homeowners who have been turned down in the past can give themselves the best chance for success.

1. Check your credit report

A low credit score can reduce your chances of getting a loan from a lender. This is because a low score usually indicates a low ability to repay credit debt. Many people fail to check their credit report before applying for a loan. This means that millions of applicants fall at the first hurdle, not even realizing there was a problem.

You should always check your credit report before applying for a remortgage. If your credit report is low, you should learn how to improve it.

2. Resolve issues before your new request.

If you haven’t been successful in the past, it’s a good idea to take a look at your app and troubleshoot any issues that might be causing an issue.

The most common problems on a remortgage application include financial errors and paperwork issues. If you are unsure of what to do, perhaps seek help from a financial advisor.

3. Avoid asking for other loans

Mortgage lenders tend not to be impressed with applicants who have a large number of other loans in their name.

Therefore, you should avoid applying for any other type of loan before securing your remortgage. This includes staying away from those trying to buy now and pay later!

4. Check your bank statements

To get a remortgage from a lender, your bank statements must be perfectly clean! This may require you to get rid of any unnecessary subscriptions or unnecessary expenses that are taking money from your account each month.

You should also keep all play at a relatively low level. It is recommended that you do not spend more than 5% of your overall spending on gambling.

5. Be honest

No matter how many times you try to hide the state of your finances, lenders will always find a way to find out the truth. A dishonest applicant is never what lenders are looking for!

The easiest way to improve your chances of success is to be honest early in the process. Disclose your spending habits and any debt you may have. Covering anything will always result in a no from the lender.

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