Setting up a savings account and contributing to it regularly is a good way to set aside money from your immediate outgoings. Decreasing living costs: You can save money by reducing the amount you spend in everyday life.Increasing your salary: By applying for a job that offers more money, or receiving a promotion, you can increase your wage packet or salary and boost your appeal to lenders.That's why it's important to maximise your finances by: Mortgage providers might reject your application after an AIP, because they've reassessed your case and now doubt your ability to make substantial repayments. It's important to be completely transparent about your finances by accounting for anything you may have missed. This will prevent any discrepancies and debt accruements from taking place. According to an article by Forbes, a good utilisation rate is 30%, with 50% being the maximum.Īnother way you can boost the quality of your credit report is by making sure all future payments are made on time and in full. Your credit utilisation is the percentage of available credit you have used. Consider paying off any existing debts and lowering your credit utilisation. That means boosting the quality of your credit report is a great way to secure a mortgage the next time you apply.

While an AIP is given after some preliminary searches, the credit checks that accompany a mortgage application are much more thorough, and will locate any red flags the AIP failed to find. You may have been rejected because discrepancies in your credit report didn't match the details provided in your application.

Boost the quality of your credit report.

Mortgage brokers will help you assess your financial situation and find a suitable mortgage. If this is the case, you could always check your credit report yourself for any evidence of poor credit history, or you could hire a mortgage broker. Unfortunately, not every lender will tell you why they rejected you. There's usually something specific that's put them off, which means you might have a good chance of fixing it quickly. One of the best ways to get answers, is to simply ask your lender why they rejected your mortgage application.

Find out why your mortgage application was rejected.

If your mortgage application is declined after receiving an agreement in principle, you need to work out why, and how you can fix it, you need to: What should you do if your mortgage is declined after an agreement in principle? There could be a number of reasons why your mortgage was declined after receiving an AIP, some of which can be solved in a straightforward manner. Getting a mortgage declined - particularly after getting it agreed in principle - is a huge blow, and can make you feel like your chances of securing your dream home are over. According to research conducted by Which, over 41% of young people have faced mortgage rejection, most often in areas like London and the West Midlands. Unfortunately, the possibility of your mortgage being declined after receiving an AIP isn't as rare as you might think.

Home buying can be a stressful process at the best of times, but getting an AIP is a sign that you're a step closer to achieving your dream property. Receiving your mortgage agreement in principle (AIP) can feel like a tremendous weight off your shoulders.

Agreement in principle