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Can you be declined a remortgage?

Yes, it's possible to be declined a remortgage by a lender. Just like with a new mortgage application, lenders assess various factors before approving a remortgage. Here are some reasons why a lender might decline a remortgage application:

• 1. Credit History: Lenders typically assess your credit history to determine your creditworthiness. If you have a history of missed payments, defaults, or CCJs (County Court Judgments), it could negatively impact your credit score and result in a remortgage application being declined.
• 2. Affordability: Lenders assess your income and expenses to ensure that you can afford the repayments on the remortgage. If your income is insufficient to meet the lender's affordability criteria or if your debt-to-income ratio is too high, the lender may decline your application.
• 3. Property Valuation: Lenders require a valuation of the property as part of the remortgage process. If the valuation comes in lower than expected or if there are issues with the property's condition that affect its value, the lender may decline the remortgage application or offer a lower loan-to-value ratio.
• 4. Changes in Circumstances: Changes in your circumstances, such as a loss of income, a change in employment status, or an increase in existing debt, could impact your ability to repay the remortgage. Lenders may decline your application if they deem your financial situation to be too risky.
• 5. Property Type: Some lenders have restrictions on the type of properties they are willing to remortgage. For example, properties with certain lease lengths, construction types, or usage (e.g., buy-to-let properties) may not meet the lender's criteria, resulting in a declined application.
• 6. Legal Issues: Legal issues related to the property title, such as unresolved disputes, restrictions, or adverse findings during conveyancing searches, could lead to a declined remortgage application.
• 7. Lender's Criteria: Each lender has its own lending criteria and risk appetite. Even if you meet the general eligibility requirements, your application could be declined if it doesn't align with the lender's specific criteria or if the lender determines that the risk associated with the application is too high.

If your remortgage application is declined, it's essential to understand the reasons for the decision and explore alternative options. You may consider improving your credit score, addressing any affordability issues, seeking advice from a mortgage broker, or exploring remortgage products from different lenders. Working with a financial advisor or mortgage broker can help you navigate the remortgage process and find the best solution for your circumstances.