Mortgages are complex, they are always dependent upon your financial standing, employment, and loan history. Your credit score, yearly earnings, and status of employment all contribute to whether or not you will be approved, but there are ways to get around these unreasonable requirements. Below are some reasons you may be denied on your mortgage application and what you can do to avoid it.

If You’ve Lived in the UK Less than Three Years

Many mortgage lenders won’t approve your application if you have recently arrived in the UK. They may be skeptical about your financial well-being after moving to a new country. Some simply don’t want to take a risk on it. However, there are some lenders who will be willing to approve your mortgage if you have copies of your employment contract and vise before applying. These will improve your odds by showing that you have permission to live and work in the UK. Working with a mortgage broker or financial adviser can also help you by speakig to lenders on your behalf.

If You Don’t Earn Enough

Whether you can afford the mortgage is of course one of the biggest determining factors of your mortgage approval. If they think that you don’t make enough money, the bank or mortgage provider will not be enthusiastic about lending to you. There are, however, things you can do. One tactic is to ask for a smaller mortgage or a longer term. If you pay off a mortgage over 30 years instead of 15, you will pay less interest and will have longer to pay it back. Planning this far ahead can benefit you.

If You Have Bad Credit

Poor credit is one of the main reasons people get denied for a mortgage. It is best to pay off your debt before you take out a mortgage, but if you have and still have a bad credit score you can use a credit-building card and cut ties with people who are financially unreliable. Furthermore, if you have bad credit and want to take out a mortgage you can usually do so with a guarantor or a large deposit.

If You Have a Small Deposit

While it may be the best time to take out a mortgage, lenders will be hesitant to lend to you if you can only offer a small deposit. The smaller your deposit is, the less likely the lender is to approve your mortgage. They will also make the percentage higher if you are only offering a small deposit. It is worth taking the time to save up more for the down payment but if you don’t want to wait, you can make use of a government scheme that will help you save for a mortgage. It is always prudent to research the best mortgage rates.

If You’re Self-Employed

Even if you make good money, being self-employed doesn’t help you in regards to being approved for a mortgage. Some lenders will be skeptical that you have a steady income. They will want to make sure your pay doesn’t fluctuate too much. If you are self-employed, be prepared with tax records and proof of upcoming jobs. If you can show them that you are able to pay the mortgage payments and your pay doesn’t change too much, there shouldn’t be a problem.

If You’ve Taken out a Payday Loan

It doesn’t matter how quickly you paid back your payday loan, if you have taken one out recently mortgage lenders and banks won’t be happy about it. The further away it is, the less likely they will be to care, but it is always good to wait it out. If you don’t want to wait, you can speak to a financial adviser who will be able to show you lenders that will be the most likely to lend to you. Offering a larger deposit always helps as well.

It doesn’t matter what your position is, if you are prudent and consider the reasons people are usually denied mortgages, you will be able to maneuver around them and get approved. To get access to the house you want and deserve, all you have to do is stay aware of why people are rejected and find what you can to do to avoid a similar fate.