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Unexpected Reasons Why You May Get Rejected For A Mortgage

Applying for a mortgage can in some cases be a complex process, depending on the circumstances of the borrower.

The reason for this is that a mortgage is often the single biggest loan that a person will get in their lives, often worth multiple times their annual salary and paid across multiple decades.

To ensure that people have the best possible chance of paying this off in full, mortgage lenders tend to follow a rigorous number of checks to ensure that a borrower is as minimal a risk as possible before providing an agreement in principle.

As a result, there are certain common reasons why people are rejected for mortgages, such as poor credit history, a currently active county court judgement or inconsistent or low income. Specialist providers will often provide bespoke mortgages in these cases.

However, there are still some rather surprising reasons why your mortgage application was rejected, and here are just a few examples of the strangest.

Speeding Up The Career Ladder

One common factor when it comes to mortgage lenders is that they prefer consistency over success in the long term, and whilst this is more commonly an issue with seasonal workers, novelists and the self-employed, this can be surprisingly problematic for careerists too.

If you regularly get new, better jobs, or are promoted in an organisation that treats each promotion as effectively a new hire and a new role, it will look riskier in the eyes of some lenders than someone who has stayed in a steady job for multiple years instead.

Typically, this is why a lot of mortgage advice recommends waiting for a few months to see how your situation changes before making an application.

Joke Transactions

When making transactions with other people, try not to describe the transaction with a hilarious but suspicious moniker, as this can create unnecessary red flags for a lender and make them more cautious with their offer.

Knowing When To Hold Them And When To Fold Them

Given the risk-averse nature of lenders, it is perhaps less unexpected that lenders are not fond of gamblers, but what might surprise some is that they do not care if you are a winner or a loser.

The issue isn’t the result but the fact the borrower took the risk to begin with, and anything above an occasional small punt might cause problems.

For more information and advice about mortgages in Liverpool, get in touch today.

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