Problems Getting a Mortgage in Lincoln

Expert Mortgage Advice in Lincoln

The mortgage journey can sometimes come with its difficulties and can be challenging to those who haven’t gone through the process like First Time Buyer in Lincoln. This is understandable with the vast amount of lenders in the market offering varying mortgage criteria which homebuyers will need to meet.

Through our 20 years of experience as a Mortgage Broker in Lincoln, we have gained encountered many mortgage situations and have rich knowledge in providing support to customers through the process. We pride ourselves on top-level service to every customer.

Our experience has allowed us to help many customers overcome most mortgage hurdles. Here at Lincolnmoneyman, we love challenging ourselves to achieve mortgage success for our customers. Therefore, if we encounter an event we haven’t encountered before, there is a chance we have come across something similar before.

Whether you are a First Time Buyer, looking to Move Home in Lincoln or are Self Employed in Lincoln, our team can provide you with expert Mortgage Advice in Lincoln you need to guide you through the mortgage journey.

Top Reasons That Make a Mortgage Challenging

Generally, the mortgage process can go pretty smoothly, however, sometimes it can have its challenges.

Here at Lincolnmoneyman, we have a team of expert Mortgage Advisors in Lincoln who will be by your side throughout the mortgage process and will work hard in overcoming any mortgage obstacles. Here, we have collated a list of the most common situation our team have experienced when dealing with customers who are finding it challenging to be accepted for a mortgage.

Income is Too Low

One factor lenders will definitely look to determine whether you can manage your monthly repayments for your mortgage is looking at your income. This is done by carrying out an affordability assessment which will include the lender looking at your income and outgoings to see if that mortgage is fitting for you.

In the case where your mortgage lender will not accept you for a mortgage on the amount you desire, you may need to put down a higher deposit. With this, you can reduce the amount you need to borrow which gives you the opportunity to pay a lower amount in monthly repayments.

Not Enough Deposit

As mentioned, you may not be able to save enough for the initial deposit. Usually, you will need to have at 5%-10% deposit to have a chance of obtaining a mortgage, however, you can go higher which can is advised.

Having a higher can open a door to a lot more favourable deals offered by a range of mortgage lenders. Furthermore, you will be in a much better position compared to others.

This isn’t always the case for everyone due to finding it difficult to save the right amount, this would obviously put a pause on your plans for the foreseeable until that amount is saved. There are a number of options, that could benefit homebuyers, especially First Time Buyers in Lincoln.

Referred to the ‘Bank of Mum & Dad’ a gifted deposit can be a brilliant way to help young people get their step on the property ladder. The person providing you with this gifted deposit will need to provide a written statement to the lender declaring that this is a gift and not a loan also they will need proof of deposit.

Another helpful option available to first time buyers is the government-run Help to Buy Equity Loan Scheme. The scheme was designed to provide financial support to first time buyers by boosting their deposit up to 25% via a loan from the government.

If you have saved up 5% by yourself, the government will loan a supplemental 20%. It will always sum up to a 25% amount, therefore, you may want to put down 10% which means the government will loan you 15%. Because it is a loan, you will need to pay it back.

Struggling to save up the deposit itself can be a challenge itself, however, there is the possibility that you can get a mortgage, especially if that is the only hurdle and everything else is all good.

Poor Credit Score / Credit Problems

One of the most common issues people encounter when getting a mortgage is credit score. You may have a poor financial record of managing credit through getting defaults and missing payments, or you may have not built up enough credit score (likely found amongst younger applicants), which can cause hurdles.

Here at Lincolnmoneyman, we have a large variety of specialist lenders available to us. Therefore, if your case is a little more complex, don’t panic, there may be an option out there for you. This may involve putting down a larger deposit, however, around the 20% mark.

Not only are defaults and missed payments can affect your credit score, but there are also additional factors that can affect this like not having all your addresses correct and in line.

All addresses should be updated to your current address and registered on the electoral in order for lenders to have visual confirmation that you’re living where you say you are. An important factor to keep in mind is to not apply for too many mortgages yourself and speak to an expert first.

One thing that can have a seriously negative impact on your credit score is applying for lots of mortgages by yourself and getting declined each time. It’s likely that one of these mortgage lenders will have been assessing you using a hard credit score.

Different to a soft credit search, a hard credit score is more intense and detailed as well as leaves an obvious print on your credit file. Reducing this risk can be done by getting in touch with a Mortgage Broker in Lincoln who can help you with finding the right lender for you.

Speak to an Expert Mortgage Broker in Lincoln

Through our time as a fast & friendly Mortgage Broker in Lincoln, we have gained extensive experience and rich knowledge when it comes to understanding what lenders are looking for in mortgage applicants.

When you get in touch with us, we can help you by explaining the best steps to take towards having a successful mortgage application.

Going through these steps is straightforward to do. Getting in touch with a knowledgeable Mortgage Advisor in Lincoln could put you in the right direction for getting a mortgage deal.

We offer all our customers a free mortgage appointment which will be perfect for you to kickstart the process of obtaining a mortgage and getting the keys to your dream home.

Last Edited: 11/10/2022