As before the virus, some mortgage lenders have a greater appetite for risk than others. Some still offer products with higher credit-to-value ratios, and the consultants we work with know who they are. Even if you have been pinched or your income has been affected, there is probably a lender out there who understands your situation and is flexible enough to offer you the mortgage you need. Negative problems can be overcome because there are lenders who like to consider an unproductive mortgage, including mortgages with a CCJ, recent late payments, defaults and even withdrawals and bankruptcies. If you think you have been rejected because of a poor credit score, you should take steps to rebuild your score or consider applying for a mediocre credit mortgage. Other factors that imply a rejected application of HSBC are: some lenders do not give leeway for one factor, but may completely ignore another; some calculate averages, others use absolute numbers; Some require a long work history and an indeterminate contract, others accept a mortgage during a trial period or even on the basis of a future contract that you have not yet started. It can be difficult to get a mortgage as a gambler, as lenders will probably consider you high risk. Lenders need to see that you have financial stability over a period of time – long-term players who have financial stability will probably be accepted for a mortgage, so if you played for a shorter period of time, that may be one of the reasons you were rejected. Real estate that is not considered an acceptable model with one lender may be acceptable with another – here too, it is always best to check with the lender before applying if you think the property is not likely to avoid last-minute mortgage declines and create significant valuation fees. Also, many real estate agents (or sellers) won`t even consider taking a home off the market if you don`t have an AIP, because that means they have no idea if you`re ever considered by a mortgage lender for the amount of money you want to borrow. An agreement-in-principle is an important step in securing a mortgage and buying a home.
But remember, it is not legally binding, and the lender has the right to withdraw, or offer you another amount or mortgage product (and interest rate). If you haven`t done so yet, ask the lender why your application was rejected. They may not give you an answer, but it`s worth a try. An “agreement in principle” is given by lenders to say that, based on basic information about you, they think they would grant you a mortgage if you apply for a mortgage. It may be helpful to have an agreement in principle if you are hunting at home, as this gives you an idea of what you can afford, and some housing agents will check if you have one before you show a property. But it does not guarantee you a mortgage, and it is possible to be rejected by a lender after giving you an agreement in principle. However, like all lenders, Kensington still has criteria that they must meet by their applicants and they can reject your residential mortgage application for these reasons: if your application was rejected after the real estate valuation, Natwest might feel that the property was worth less than the mortgage you requested or if the general condition of the property did not meet its standards.