Affordability and income issues
Failing the affordability check is the most common reason a mortgage gets refused. The lender stress-tests your income at higher interest rates than you would pay now (typically 6–8%) to see whether you could still cover the payments if rates climbed. It also subtracts your existing commitments, loans, credit cards, childcare, regular subscriptions, before deciding what is left to lend against.
Turned down on affordability? You have a few levers: clear some existing debt, put down a bigger deposit so you borrow less, stretch the mortgage term to bring the monthly payment down, or move to a lender whose affordability model runs more generously. A broker can work out which lenders are likeliest to approve you given your income and outgoings, and our affordability calculator helps you see the picture before you apply.
Credit history problems
Adverse credit is another frequent cause: missed payments, defaults, CCJs and bankruptcy all show up on your file and give lenders pause. Even a cluster of credit searches over a short spell can drag your score down. And every lender draws its line in a different place.
There are specialist lenders built specifically for borrowers with credit trouble. Their rates tend to run higher, but getting onto the ladder now and refinancing to a cheaper deal once your file recovers often beats sitting out the years it takes to clear. A broker who knows the adverse credit market can match you to the right one.
Read your credit file properly for mistakes while you are at it. A missed payment logged in error, or an account that was never yours, can be disputed and corrected, and that alone can change the answer on your application.
Documentation and application errors
Patchy or inconsistent paperwork trips up more applications than you would think. A missing payslip, a large deposit in your bank statement you have not explained, or figures on the form that do not match your documents can each be enough for a lender to say no.
Before you reapply, get at least three months of bank statements with nothing unexplained on them, current payslips or tax returns, proof of where your deposit came from, and valid ID. A bit of care at this stage saves time later and lifts your chances noticeably.