Have you been declined for a mortgage because of Unusual circumstances? By Chris Morgan, Lead Financial Adviser & Mortgage Commentator
You have all the right documents, but still the application was declined? This can be so frustrating – especially if the property has the potential to be your dream home.
The lender asked for the following and you have everything they asked for – yet they still didn’t offer you the mortgage.
- Proof of Income (P60, Payslips, Self Employed Accounts)
- Bank statements (Showing Income & Outgoings)
- Proof of residency (Recent Utility Bills)
- Proof of deposit (Bank Statement)
- Proof of employment (Employment Contract)
- Credit Report (Experian or Equifax Report)
Sometimes the reason for a declined mortgage is not the status of the borrower, but is the property itself – we have met many applicants who meet the financial requirements of the mortgage lender – but there may be another reason that they are declined.
Here are some examples of where we have been able to assist people where they have “Unusual” circumstances when taking out a mortgage.
These are some of the areas in which we have strong relationships with lenders …
- Splitting title deeds – This is where there are two or more properties on one set of title deeds, so for example recently we mortgaged a cottage, which had an annex apartment attached.
- Split use (Residential) – This is where there may be two different types of property in the building, for example where there may be a private residency, with some buy to lets also in the same building.
- Split use (Commercial) – Once again two different types of property in the same building, in this case we helped someone with a shop unit which was being used as a hairdressers, along with Buy to Let properties above.
- Commercial use – Sometimes properties are deemed to be of commercial use, maybe where there are stables or land used for commercial purposes.
- Expatriate Mortgages – British Expats generally get a rough deal when it comes to getting mortgages, but we do have lenders for people living abroad who may be looking to invest into property.
- Development Finance – This is where you already own the land and have the planning permission agreed – but you need extra funding to build and complete the project.
Interest Rates
Current Bank Rate 4..5% as of 20th March 2025.
As interest rates ease we expect to see more activity and interest in the property market and in turn there are more people that are likely to be declined or turned down for mortgages. If you want to keep track of the Bank of England base, which effects mortgage rates then click here.
https://www.bankofengland.co.uk/monetary-policy/upcoming-mpc-dates
You can find out information about the dates of forthcoming interest rate decisions and the minutes of previous meetings. No matter how much you read in the press or media about inflation, trade tariffs, or taxation – the most important factor in your mortgage decisions will be interest rates.
The next interest rate decision is Thursday 8th of May at 12 noon.
A to Z of Mortgage Issues
If you would like to know more about the types of Mortgages that we arrange you can find a comprehensive “A-Z of Mortgage Issues” on the right side bar of this page. If you would like to know about a Mortgage that is not on the list, then be sure to contact us using the details at the bottom of this article.
15 Minute Mortgage Assessment
Unusual Mortgages offer a 15 minute free mortgage assessment over the phone for anyone that has been turned down for a mortgage elsewhere. We will confirm if the decision you were given is correct and assess your options across all of the lenders on our manual research list, from which we tailor bespoke solutions for our clients.
If you have been turned down for a mortgage or are worried about approaching lenders due to the way you have been treated in the past, why not give us a call. Within 15 minutes you will know if your hopes and aspirations are a reality, with a sound opinion from the most experienced mortgage broker in the United Kingdom at placing “Unusual Mortgages”.
If you require more information on Complex Mortgages, Commercial Mortgages, Expatriate Mortgages, Foreign Currency Mortgages, Large Value Mortgages. Marquee Property Mortgages, Multiple Mortgages, Split Use Mortgages, Split Title Mortgages, Portfolio Landlords you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk