Mortgage Declined By Barclays? Here’s What To Do Next.

If you’ve recently been declined for a mortgage with Barclays, don’t feel too disheartened, as it doesn’t mean all other mortgage lenders will come to the same conclusion. 

A large high-street lender such as Barclays can afford to have stricter lending criteria than most, and each application will be vetted using an automated decision-making process. If your application doesn’t quite fit within Barclays’ lending guidelines, you’ll likely receive a frustrating ‘computer says no’ response. 

The good news is your mortgage journey is not necessarily over because of one rejection. We work with lots of specialist mortgage lenders who assess each applicant on a case-by-case basis using human underwriters. This method allows far greater flexibility for accepting applications that might not seem ‘perfect’ when viewed by a computer. 

In this guide, we’ll outline some of the main reasons why Barclays would decline a mortgage application, what steps you can take to improve your chances when you re-apply and how Haysto can help make your mortgage possible when other brokers can’t. 

Why Barclays might decline your mortgage application

In general, there’s two overarching reasons why Barclays could decline your application: 

• You haven’t provided enough evidence to satisfy Barclays’ affordability checks and prove your income can cover the monthly mortgage repayments for the amount you want to borrow (this can be a particular issue if you’ve recently become self-employed, for example).  

• Your credit score is too low, typically caused by one or more bad credit issues registered on your Credit Report and/or you’re not registered on the electoral roll at your current address. 

More specifically, your mortgage application could be declined by Barclays for several reasons, including: 

• You’ve previously owned a property that has been repossessed

• You’re a professional gambler

• The property you’re looking to buy is a timber construction

• You’re buying a property with an annex where the intention is to let the annex

• The source of your deposit is a loan, whether from family or from a bank

• You need a mortgage for a self-build project

• Your main source of income is from a stipend (salary for a role that’s normally unpaid)

• You have an unsatisfied County Court Judgment (CCJ) registered on your credit record

• You’re currently paying into a debt management plan (DMP)

• The property you want to buy is located in the Channel Islands or the Isle of Man

In addition to the above, Barclays will decline mortgage applications for particular property types, such as mobile homes, houseboats, commercial B&Bs, or a flat above a pub. 

(Source: Criteria Brain )

What steps you should take next

If Barclays has rejected you for your mortgage, the one thing you mustn't do is rush in and reapply straight away with other mortgage lenders, expecting a different outcome. 

Applying for a mortgage will show on your Credit Report but won’t show if you were accepted or declined. However, multiple hard search mortgage applications in a short period of time will indicate to a lender that you’ve been rejected and lower your credit score, making it harder to be approved. 

This is why it’s essential to take your time and follow these steps to give yourself a better chance of getting the mortgage you need: 

• Find out why Barclays declined your mortgage. Speak to Barclays and establish why your mortgage was declined and what the circumstances were that led to this decision. If the reason given is specific to Barclays’ lending criteria (you want a mortgage for a self-build project, for example), you can then search for lenders who can cater for these requirements. If it’s a credit issue, take some time to repair your credit score before reapplying. 

• Speak to a mortgage broker. Once you know the issue that led to your application being rejected by Barclays, the smart next move is to seek the help of an experienced mortgage broker. Your broker will be able to help rebuild your application and identify lenders who will look more favourably on your case. 

• Apply with the right lender. Taking the time to fix whatever issue led to your application being rejected now puts you in a much stronger position to get the mortgage you need. With your broker’s assistance, you can now reapply with a lender whose criteria are better suited to considering your case. 

How Haysto can help make your mortgage possible

Haysto has a proven track record of securing mortgages for people rejected by mainstream lenders, such as Barclays. That’s because we know that automated decision-making simply doesn’t work for most complex issues, and everyone’s circumstances are different. 

A rejection from one lender doesn’t mean all others will do the same. In many cases, the difference between getting a mortgage or not can depend on choosing the right lender most suited to your specific requirements. 

We work closely with several specialist lenders who help people in similar situations every day. These lenders prefer a more human approach to assessing an application rather than a computer-based checklist, giving you a better chance of success. 

All you have to do is make an enquiry and a member of our mortgage team will be in touch to get started.