Mortgage declined

A lender doesn't have to say why it turned you down, but the FCA rules do force it to tell you two specific things. Knowing what those are usually explains the rest.

Last checked 13 September 2026.

What a lender must tell you

For a regulated residential mortgage on your own home, an MCD mortgage lender must, when it rejects your application, inform you "without delay": that the application has been rejected; whether the decision was based on automated processing; and, if the rejection was based on a database check, the result and the particulars of the database consulted (FCA Handbook, MCOB 11A.3.3R). It must also tell you in advance if it plans to check a database (MCOB 11A.3.2G).

Two things follow. First, the lender doesn't have to state the underlying reason: "computer said no" is compliant. Second, if the "no" was driven by a credit reference agency or a fraud-prevention database, the lender must name that database and give you the result. Ask for both in writing.

These rules apply to MCD regulated mortgage contracts — the ordinary residential mortgage on a home you live in. Buy-to-let taken out as a business is usually outside the FCA regulated regime, so this notification doesn't apply to it (PERG 4.10B).

What the "no" usually means

Automated declines are almost always driven by one of four things: a mismatch between what you told the lender and what its systems could verify; the affordability calculation, including how the lender treats variable pay and committed spending (MCOB 11.6); a credit reference agency report; or a fraud-prevention entry, most often Cifas. If the decline letter names a database, that's the trail to follow next.

How to see what the lender saw

You have the right, free of charge, to a copy of the information a credit reference agency holds about you: it's called a statutory credit report and it comes from Equifax, Experian and TransUnion under the Consumer Credit Act 1974. Make a subject access request under UK GDPR Article 15 if any provider tries to charge (ICO).

If the lender named Cifas, request your data from Cifas directly — details in our Cifas guide. You can be on Cifas without ever being told.

If the decline is a credit-file problem

Errors are common: closed accounts still shown as open, defaults still shown as unsettled after payment, one person's data attached to another at the same address. Correct them with the agency before you re-apply, and ask the lender to reconsider. Records of county court judgments are kept for six years unless you pay the full amount within a month, in which case they come off the Register of Judgments, Orders and Fines (GOV.UK).

Don't shotgun applications

Every full application leaves a hard search on your credit file, visible to other lenders for a year. A run of hard searches in a short period lowers your score and makes the next application look worse. Ask any broker or lender whether a check will be a soft search (invisible to others) or a hard search before they run it.

When to move from your bank to a broker

If the lender is your own bank and you were declined on affordability, the arithmetic is usually the same at any high-street lender. A whole-of-market broker can tell you which lenders assess your kind of income differently. If it was a credit or fraud-database issue, some specialist lenders only take applications through brokers, and a broker who arranges those cases knows which ones to try (see how to choose a mortgage broker).

If the offer was pulled after exchange

Once a mortgage offer is in place, a lender may still withdraw it if new information changes the picture — a change of job, a fresh credit account, missed payments. The MCOB rules on making credit available responsibly apply throughout, not just at application, and the lender must still notify you of the withdrawal. If you think the withdrawal was unfair, complain to the firm first, and if unresolved, to the Financial Ombudsman Service.

Brokers whose website mentions bad or adverse credit

280 firms in our directory mention bad or adverse credit on their own website. That's what they say about themselves, not an assessment by us, so check that a firm handles your situation and look it up on the FCA Register before taking advice.

More guides

• How to choose a mortgage broker
• Cifas markers and mortgages
• Mortgages with bad credit
• Mortgages for the self-employed
• First-time buyer mortgages
• Buy-to-let mortgages
• Remortgage guide
• Contractor mortgages
• Agreement in Principle
• Credit score and mortgages
• Mortgage broker fees
• Divorce and mortgages
• Gifted deposit
• Should you use the estate agent's recommended broker?
• Documents for a mortgage application
• What happens at a mortgage fact-find
• New build mortgages

General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.