Buy-to-Let Mortgage Declined
Having your Buy-to-Let mortgage application declined can be frustrating and leave you uncertain about your next steps.
A specialist adviser can review your circumstances, identify the reasons for the decline, and guide you towards alternative solutions to secure the funding you need.
Why Your Buy-to-Let Mortgage Application May Be Declined
One of the most common reasons for a declined application is poor credit. Lenders heavily rely on your credit score to assess whether you're a reliable borrower. A low score can raise concerns about your ability to manage debt.
Lenders also need to ensure the property you’re looking to buy will generate enough rental income to cover the mortgage payments. If the property doesn’t meet the required income threshold, it could result in rejection.
A small deposit can also hinder your chances of getting approved. Lenders prefer larger deposits as they reduce their risk, especially in Buy-to-Let mortgages. The bigger the deposit, the more attractive your application becomes to lenders.
Why Your Buy-to-Let Mortgage Application May Be Declined
One of the most common reasons for a declined application is poor credit. Lenders heavily rely on your credit score to assess whether you’re a reliable borrower. A low score can raise concerns about your ability to manage debt.
Lenders also need to ensure the property you’re looking to buy will generate enough rental income to cover the mortgage payments. If the property doesn’t meet the required income threshold, it could result in rejection.
A small deposit can also hinder your chances of getting approved. Lenders prefer larger deposits as they reduce their risk, especially in Buy-to-Let mortgages. The bigger the deposit, the more attractive your application becomes to lenders.
How to Improve Your Chances of Getting Approved for a Buy-to-Let Mortgage
If your application has been declined, check your credit report to identify any issues. Improve your score by paying off debts or addressing any discrepancies on your record.
Ensure that the property you want to buy can generate consistent rental income. Research high-demand areas and focus on properties that will attract tenants easily.
The more you can save for a deposit, the better your chances of getting approved. A larger deposit reduces the lender’s risk and demonstrates your commitment to the investment.
How a Mortgage Broker Can Help After a Buy-to-Let Mortgage Decline
Mortgage brokers can guide you through the process after a decline. They know the criteria of various lenders and can help you find the best ones for your situation.
Brokers can also help you improve your application. They will assist you with paperwork, advise on improving your credit score, and present your case in the best possible way.
In addition, mortgage brokers have access to exclusive deals that might not be available to the public. This can increase your chances of securing a better deal, even after a decline.
How a Mortgage Broker Can Help After a Buy-to-Let Mortgage Decline
Mortgage brokers can guide you through the process after a decline. They know the criteria of various lenders and can help you find the best ones for your situation.
Brokers can also help you improve your application. They will assist you with paperwork, advise on improving your credit score, and present your case in the best possible way.
In addition, mortgage brokers have access to exclusive deals that might not be available to the public. This can increase your chances of securing a better deal, even after a decline.
Frequently Asked Questions
Frequently Asked Questions: Declined Buy-to-Let Mortgage Applications
Why was my Buy-to-let mortgage application declined?
Lenders may decline applications due to insufficient rental income, poor credit history, property type or not meeting their affordability criteria.
Can I reapply if my Buy-to-Let mortgage was declined?
Yes, but it’s essential to address the reasons for the rejection before reapplying. A mortgage broker can guide you through the process.
Does a declined Buy-to-Let mortgage affect my credit score?
A decline itself doesn’t impact your score, but multiple applications can lower it. Always check eligibility before applying.
What rental income do lenders require for Buy-to-Let mortgages?
Typically, rental income must cover 125–145% of the mortgage payments, depending on the lender and your tax status.
Can I get a Buy-to-Let mortgage with bad credit?
Some lenders specialise in helping applicants with poor credit. A broker can connect you with these options.
Will I need a higher deposit if my Buy-to-Let mortgage was declined?
In some cases, increasing your deposit can make your application more attractive to lenders.
Can I appeal a declined Buy-to-Let mortgage application?
It’s unlikely to change the decision, but understanding why it was declined can help you address issues for future applications.
Do lenders decline Buy-to-Let mortgages based on property type?
Yes, certain property types, like HMOs or non-standard constructions, may be considered higher risk and require specialised lenders.
How can a mortgage broker help if my application is declined?
A broker can assess your situation, identify suitable lenders, and guide you on improving your application to avoid future rejections.
Is self-employment a common reason for a Buy-to-Let mortgage decline?
It can be if income documentation is unclear. Providing comprehensive financial records can improve your chances.
Can I switch lenders if my Buy-to-Let mortgage was declined?
Yes, but you’ll need to understand why the initial application was rejected to avoid repeating the same mistakes.
What documents should I double-check to avoid a decline?
Ensure your income proof, rental income projections, deposit, and credit history are accurate and align with the lender’s requirements.
Client Testimonial
Client Testimonial
“We were feeling pretty frustrated after being turned down for a Buy to Let mortgage by our bank. Everything seemed to be going in circles; too many forms, not enough clarity, and no real explanation as to why we were declined. It left us doubting whether we could move forward with our investment plans.
A friend recommended Power Mortgages, and working with Manny was a completely different experience. He took the time to understand our situation properly, explained what went wrong with our previous application, and found a lender who was actually the right fit for us. What really impressed us was how personal the service felt, no generic advice, just clear guidance that was right for us. We’ll definitely use Power Mortgages again.”
Danyaal & Ayesha Malik