Mortgage Declined by Underwriter – What Next?

By Kristian Derrick

Last Reviewed: 8th February 2024

Why has my mortgage application been declined?

So you’ve found the perfect house, but you aren’t able to secure the mortgage you need as your mortgage application was declined by the underwriter.

Not only is this a massive inconvenience, but it can also stop your house hunt in its tracks.

If you’ve been refused a mortgage, don’t panic.

There are a number of reasons why your mortgage application might have been declined.

We can help you to get to the bottom of it.

Mortgage declined by underwriter

There are several reasons why a mortgage can be declined by the underwriter.

It can be due debt, having a poor credit score, failing mortgage affordability checks or simply completing your mortgage application incorrectly.

With that said lenders can refuse your mortgage application for a whole host of different reasons, in this guide we explore some of the most common reasons for an underwriter declining a mortgage: 

Why was your application declined and potential solutions:

The problem: Poor credit history. It’s a good idea to check your credit report to see if there are any errors that you need to flag up.

The solution: Correct any errors on your credit report, and focus on improving your credit score. Check out our bad credit advice guide for more helpful tips.

Top Tip: Take a free look at your credit score today, visit noddle.co.uk for a free trial.

The problem: High levels of debt. If your lender thinks you’re already struggling to pay back what you owe, they might feel wary about offering you a mortgage, especially if you have something like a CCJ or an IVA

The solution: Focus on paying off your debts before your next mortgage application. If a lender can see that you’ve actively reduced the amount you owe, your application will seem less risky.

The problem: Too many credit applications. Most credit searches will leave a footprint on your file. If you’ve repeatedly applied for credit, lenders may see it as a red flag and may decline your mortgage application as a result.

The solution: Try to avoid taking out any credit deals before your next mortgage application. Don’t apply for any credit cards, and don’t buy anything on finance.

The problem: Low salary. Quite simply, some lenders might think that you don’t earn enough to qualify for the amount of money you want to borrow. This is one of the reasons most lenders require a large deposit

The solution: Aside from bagging that big promotion, you might need to request a smaller mortgage, or look into one of the government’s shared ownership or help to buy schemes.

The problem: You don’t match the lender’s profile. It’s true, some lenders prefer to offer mortgages to a specific demographic. If you don’t fit their criteria, they might reject your mortgage application.

The solution: That’s where we come in. With access to lenders across the board, we can guide you in the direction of a lender who is willing to lend to YOU.

Mortgage application declined by underwriter – Final take 

If your mortgage application has been refused, all hope is not lost.

You may need to wait a little while longer, but chances are you’ll still be accepted for a mortgage in the future.

To reduce the risk of being refused a mortgage for the second time, it’s a good idea to get advice from a mortgage broker (like us).

We have access to a huge selection of lenders, and we know which lenders are most likely to offer a mortgage to fit your circumstances.

Bear in mind that if you do have poor credit, then you will likely be offered a mortgage at a higher interest rate. 

Note: Are you looking for commercial property but have a bad credit history? Bad credit commercial mortgages may be an option for you.

If you’d like to talk to us about your next mortgage application, you can contact us on 01925 906 210 or fill out our contact form.

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