Last Updated: 18 September 2026 I Reading Time: 6 minutes
Summary
Buying a home is one of the biggest financial decisions most people will ever make, and getting a mortgage application rejected can feel like a real setback, especially once you’ve found a property you love. In a widely shared video, consumer finance expert Martin Lewis highlighted three key areas that commonly trip up mortgage applicants: affordability, the property itself, and credit history.
Understanding these three areas before you apply can save you time, money and disappointment. It can also help you avoid a “hard” credit search that leaves a mark on your file for no reason, if you apply before you’re ready.
This article breaks down each of the three factors in plain English, explains why lenders care about them, and looks at where a solicitor’s advice fits into the process, particularly when the property itself raises questions.
Quick answer
Mortgage applications are most commonly rejected for three reasons: affordability (lenders don’t think you can comfortably keep up repayments, including if rates or rent rise), the property (short leases, cladding issues, restrictions, or unusual construction can put lenders off), and your credit history (missed payments or a poor credit score raise red flags). Addressing all three before you apply significantly improves your chances.
In this article
- Why mortgage applications get rejected
- Affordability: can you really afford it?
- The property: what lenders look for
- Credit history: why your score matters
- Practical steps to take before you apply
- How GLP Solicitors can help
- Frequently asked questions
Key takeaways
- Lenders assess affordability using your income, outgoings and bank statements, and will often “stress test” whether you could cope if repayments or rent increased.
- Going frugal with spending for three to six months before applying can help your bank statements reflect a more mortgage-friendly picture.
- Property type matters just as much as your finances: short leases, cladding, restrictions, very small studio flats, high-rise blocks and flats above commercial premises can all cause lenders to hesitate.
- Issues flagged in a structural survey can stop a mortgage offer even at a late stage, and can also make it harder to remortgage later.
- A poor credit score or a history of missed payments is one of the most common reasons for rejection.
- Even if you get a mortgage approved on a property with known issues, remortgaging in future could prove difficult if those issues remain.
- Getting professional advice early, particularly from a conveyancing solicitor, can help you spot potential problems with a property before they derail your purchase.
Why mortgage applications get rejected
Getting a mortgage isn’t just about earning enough money. Lenders look closely at your overall financial picture, the property you want to buy, and your credit history. A weakness in any one of these three areas can lead to a rejected application, or a mortgage offer being withdrawn later in the process.
Below, we look at each factor in turn.
1. Affordability: Can you really afford it?
Affordability is about more than your salary. Lenders want to know that you can comfortably manage your repayments, both now and if your circumstances change.
What lenders check:
- Your income and how stable it is (including bonuses, overtime or self-employed earnings).
- Your regular outgoings, from subscriptions and takeaways to existing debts.
- Several months of bank statements, to see your actual spending habits.
- How you’d cope if interest rates rose, or if you’re currently renting, how you’d manage if your rent increased.
Lenders “stress test” affordability by checking whether you could still afford your mortgage if repayments went up. This is designed to protect both you and the lender from a mortgage that only works while everything goes to plan.
A practical tip: many advisers suggest going through a frugal period of around three to six months before applying. This means cutting back on non-essential spending such as takeaways, subscriptions you don’t use, gambling transactions or frequent overdraft use. Lenders see this spending on your statements, and a cleaner, more disciplined financial picture in the months before you apply can make a genuine difference.
2. The Property: What lenders look for
Even with strong finances, some properties are simply harder to mortgage than others. Lenders take on risk when they lend against a property, so they look closely at what they’d be securing the loan against.
Common property issues that can affect a mortgage application:
- Short leases – Leasehold properties with a short remaining lease (often under 80–70 years) can be harder to mortgage, as the lease’s value diminishes over time. This is a particularly important issue for flats and some new-build houses.
- New builds – Some lenders apply extra scrutiny to new-build properties, partly due to how quickly they can lose value once sold on.
- Restrictions – Covenants or restrictions on a property’s use, alterations or resale can make lenders cautious.
- Very small studio flats – Properties below a certain floor area are considered higher risk by many lenders and can be harder to mortgage or resell.
- Cladding – Following well-publicised building safety concerns, properties with certain types of cladding, particularly in blocks of flats, have faced additional lender scrutiny and, in some cases, requirements for safety certification (commonly known as an EWS1 form).
- High-rise blocks – Similar to cladding concerns, some lenders are more cautious about flats in taller blocks.
- Living above commercial premises – A flat above a shop, takeaway or other business can be treated differently by some lenders, particularly where there are concerns about noise, odour or fire risk.
- Structural survey findings – Issues such as subsidence, damp, or defective roofing identified in a survey can lead a lender to withdraw or amend a mortgage offer.
Importantly, even if you get through the process and secure a mortgage on a property with one of these characteristics, it doesn’t necessarily mean smooth sailing later on. Remortgaging in future, whether to get a better rate or release equity, could prove more difficult if the same issues still apply, since a new lender will assess the property afresh.
3. Credit History: Why your score matters
Your credit history gives lenders an indication of how reliably you manage borrowing. A history of missed or late payments, high existing debt levels, or a low credit score can lead to a mortgage application being refused, even where your income looks strong on paper.
Things that can affect your credit position include:
- Missed or late payments on credit cards, loans or utility bills.
- High balances relative to your available credit.
- Multiple recent credit applications.
- A limited credit history, which can make it harder for lenders to assess you.
Checking your credit report with one of the main credit reference agencies before applying gives you the chance to correct errors and understand where you stand, rather than being caught out during the application itself.
Practical steps to take before you apply
- Review your bank statements from the last three to six months and reduce unnecessary spending.
- Check your credit report and address any inaccuracies or outstanding issues.
- Research the specific property, including its lease length (if leasehold), building type and any known building safety issues.
- Budget for a structural survey and take its findings seriously before proceeding.
- Speak to a mortgage broker and a solicitor early, so any property-related red flags are identified before you’re financially committed.
How GLP Solicitors can help
While affordability and credit checks are matters between you and your lender, the property itself is an area where a solicitor’s advice can be invaluable. Our conveyancing team regularly helps clients understand the legal position of a property before they commit to a purchase, including matters such as lease length, restrictive covenants, and building-related documentation that a lender may require.
If you’re buying a leasehold property, we can advise on the remaining term and, where needed, the process for extending a lease. If a survey has raised concerns, we can help you understand what further checks or enquiries may be needed before you proceed. Our aim is to make sure you go into a purchase with a clear picture of the property’s legal standing, alongside the financial checks your lender will carry out.
Frequently Asked Questions
Mortgage applications are most commonly rejected due to affordability concerns, issues with the property itself (such as a short lease, cladding or structural problems), or a poor credit history. Lenders assess all three areas, and a weakness in any one of them can lead to a decline, even if the others look strong.
Focus on the areas lenders scrutinise most: keep your spending disciplined for several months before applying, check and address any issues on your credit report, and be aware of any potential problems with the specific property, such as a short lease or building safety concerns, before you commit to it.
Yes. Many lenders are cautious about leasehold properties with a short remaining term, as the lease loses value over time and can affect the property’s resale potential. Requirements vary by lender, so it’s worth checking early and seeking advice on lease extension if needed.
It can. Some lenders have applied extra scrutiny to properties with certain types of cladding, particularly in blocks of flats, sometimes requiring specific safety certification before agreeing to lend. This has eased for many buildings over time, but it remains worth checking early with your broker or lender.
There isn’t a single universal credit score required for a mortgage, as different lenders use different scoring systems and criteria. Generally, a stronger credit history with no recent missed payments will improve your chances and may open up more competitive rates.
It can. If a survey identifies significant issues, such as subsidence, damp or structural defects, a lender may withdraw or reduce their offer, or ask for further specialist reports before proceeding. It doesn’t automatically end the purchase, but it often means further negotiation or investigation is needed.
Some lenders are more cautious about flats above commercial premises due to factors such as fire risk, noise or the mixed-use nature of the building. If your circumstances or the lending market change, you may find your options for remortgaging are more limited than for a standard residential property.