Refused by the underwriter. Now what?
The computer said yes, then a person read the file and said no. That is frustrating, but it is also useful: an underwriter's decline usually has a specific reason, and a specific reason can often be dealt with.
Not ready to ring? WhatsApp me or leave your details and I will get back to you.
David Bourne
What the underwriter actually does
An agreement in principle is mostly automated: a credit search and the figures you entered. The underwriter then checks those figures against your documents: payslips, accounts, bank statements, the valuation, and your full credit file. A decline at this stage means something in the documents did not match the lender's rules or the application.
The usual reasons
Income that did not evidence as expected. Overtime, bonus or self-employed income counted differently once the payslips or accounts were read. Bank statement conduct. Overdraft use, returned payments, gambling transactions or regular payments to credit not declared on the application. Something on the file that the automated stage weighed lightly and the underwriter did not. The property, after the valuation. The deposit, if its source could not be shown.
Find out which it was
Lenders do not always explain a decline in detail, but it is worth asking, in writing, whether it was credit, affordability, property or policy. If it was credit, ask which credit reference agency they used, and check your report from that agency. If you used a broker, they will often get more from the lender than you can.
What not to do next
Do not reapply straight away to the same lender, or to a string of others. Each full application can leave a search on your file, and several in a short space make the next lender warier. Work out the reason first, then choose a lender whose rules fit it.
What I would do
Read the documents the underwriter read, in the same order, and find the line that failed. Then match the case to a lender whose criteria accept it. Often the answer is not "you cannot get a mortgage" but "you cannot get one from that lender, on those rules".
The usual questions
Why would an underwriter decline a mortgage after an agreement in principle?
Usually because the documents showed something the automated check did not: income counted differently, bank statement conduct, something on the credit file, the property or the deposit.
Will the lender tell me why?
Not always in detail. It is worth asking in writing which area it was, and which credit reference agency they used.
Can I appeal an underwriter's decision?
Some lenders will reconsider if new information answers the reason for the decline. Often a different lender is the better route.
Does talking to you affect my file?
No. There is no credit search to talk.
Leave your details and I will get back to you.
Plenty of people would rather not ring a stranger about their credit file, least of all at the end of a long day. Leave a number or an email and I will get in touch when it suits you.
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Was it more than one thing?
Most declines have a single trigger, but not all. If any of these sound closer, they are worth a read too.
Declined over gambling on your statements
Underwriters look at pattern and proportion, not the fact that it appears at all.
Declined over a gifted deposit
A gift from a parent is routine. The same money from a friend stops much of the market.
Declined by a high street lender
A big name saying no is one lender applying its own rules, not the market speaking.
Declined on how your income was read
Overtime, bonus, commission and self-employment are counted differently by every lender.
Back to all the reasons a mortgage gets declined · How David helps after a mortgage is declined
If you would rather see someone local: I work in Uxbridge and I live in Guildford.