Why Has My Leeds Building Society Mortgage Application Been Refused?
First, let's think about some of the typical reasons your application may have been rejected:
- You don't have a clean credit report.
While Leeds Building Society is one of the mainstream lenders who sometimes offer bad credit mortgages, this isn't universal and will depend on the nature of the credit issues.
Applicants with any unsatisfied faults, CCJs or DMPs are usually automatically rejected.
- You are self-employed and want to apply based on last year's income.
Self-employed mortgages vary considerably between lenders. Some will want to see a few months of regular trading, whereas Leeds Building Society will need to view a minimum of two years of accounts.
Suppose you have been self-employed for a shorter period, or your business changed dramatically in the last year, and you'd like to use this income to demonstrate your affordability. In that case, Leeds Building Society likely won't be able to help.
- The property purchase falls outside of the lender's remit.
It's not uncommon for a mortgage agreement in principle from Leeds Building Society to be withdrawn following the property survey.
That might be because the valuation on the survey report is lower than anticipated or because the property falls outside of the types of home Leeds Building Society will lend against. Timber constructions or prefab concrete buildings, for example, are often refused.
- The bank isn't happy with your deposit source.
To get past the agreement in principle stage, you'll need to explain where your deposit comes from and who is financing it. Anything like a gift from someone who isn't an immediate family member, short-term lending or overseas income won't be accepted.
- Your income relies mainly on benefits.
While many lenders are comfortable using benefit income to see how you will repay the mortgage, Leeds Building Society isn't one of them.
In any of these circumstances, there are plenty of other lenders that will be able to help. For instance, benefit income is widely accepted by mortgage providers with more flexible income policies.
Deposit source criteria vary across the industry, and specialist self-employed mortgage lenders will be happy to lend provided they can see you have experience in your sector.
The best way forward is to contact our mortgage brokers team for an independent assessment of your borrowing needs and help with reapplying to a more relevant lender.
What Should I Do if Leeds Building Society Rejects my Mortgage Application?
If you've had a refusal, there are a few keys things to consider:
- Avoid reapplying immediately, either to another bank or for a reduced amount. It's essential to get an overview of each lender's criteria before you apply, and having numerous rejections can damage your credit file.
- Get the facts from the bank, so you understand why they have refused your application. You can request copies of any reports or credit file information, so you know where you stand.
- Consult the Revolution team. Our whole-of-market mortgage consultants help thousands of applicants find the lending they need, with full support in negotiating rates and selecting lenders whose criteria match your circumstances.
