There are a number of reasons why you or your property may be declined when applying for a home loan. Mortgage lenders analyse two key aspects to decide whether to offer you the remortgage you seek. Firstly, is the property you wish to buy adequate security for the loan, and secondly, are you a good credit risk?

The first question involves obtaining information about your financial position - from the various credit and store cards you may have, to any outstanding loans. Also, you will undergo a credit search and receive a credit score. In doing this, the lender will look at your financial history with regards to how well you have coped with previous borrowing, whether you are on the electoral roll and information regarding any other financial companies which may have carried out similar searches on you.

The search will reveal whether you have made repayments on time, but also if you have fallen into arrears at any point. Mortgage arrears, County Court Judgments (CCJ's), defaults or bankruptcy are all troubling points and before making their decision, potential lenders will consider these also. All this detail about your financial position is held by credit reference agencies and can take up to six years to clear.

Credit scoring is the next stage of the process for the lender as they score each individual point which they have noted whilst assessing your file. Once all these been accumulated, they have a total credit score for you and either grant you the loan or not.

Please remember that lenders have different scoring systems and so, you may not qualify for a loan with one lender, but you could with the next. Having said that, it should be noted that each credit search carried out will be placed on your record, and so, may hinder your chances of succeeding with the next application.

Although it may seem unfair,with no credit record you may also find it difficult to receive a loan as the lender may not wish to take a risk on you. Also, if you are unable to prove your residency over the last three years, and you are not on the electoral roll, you may be refused a loan also. After all, you may not be who you say you are. If you are registered to vote, and may need a mortgage in the future, it may serve you well to obtain a registration form from www.rollingregistration.co.uk  or call the Electoral Commission on 020 7271 0500.

You've probably noted that many lenders are particularly fussy over who they lend to. Not only do they analyse the problems you may have experienced in the past, they also calculate the likelihood of you running into financial trouble in the future.

With your employment, if you have been in a job for only a few months, or if you are still in a probationary period, the lender's decision can often be swayed against you - regardless of your past employment record. Such a scenario clearly has its downfalls. Contract workers are most likely to suffer from refused credit as they often have short term contracts. With this in mind, contract workers can immediately and easily rule out several high-street lenders when they look for a mortgage.

If you are self-employed, or work on commission, receive regular bonuses or have the ability to work overtime, the problems remain. Being self-employed is viewed as being more of a risk by many lenders. If you have at least three years of audited accounts then most lenders will accept that you are able to keep up repayments. Those with fewer, or none - it may be harder to prove your ability. With regards to those who receive bonuses, commission and/or overtime, lenders frequently calculate the maximum loan value by taking your basic wage, and adding only half of your regular overtime, bonuses or commission to this.

AS a sole applicant, in most cases the lender will offer you a loan of 3.25 times your salary. Joint borrowers have more of a choice. Either, their salaries can be added together, and multiplied by 2.5 or 2.75, or, alternatively, the first salary can be multiplied by 3.25 and the second salary can then be added to this figure.

Once the lender has picked faults with your credit history and personal finances, you may still have your mortgage application rejected due to property problems. If you fall into financial difficulty, your home may be repossessed in order for the lender to sell to recoup their investment. With this in mind, the property must have the ability to sell. Such features as thatched roofs, properties of unusual construction, listed properties and those that are perhaps part-home and also part-commercial building - may all be rejected. High rise and ex-council flats may also suffer due to this. This is because of increased fire risk, and many lenders only accept mortgage applications for residency of the first four or five stories of high rise apartments.

These notes accordingly clarify that your mortgage application can be rejected for numerous reasons, relating to your financial history or potential property. There may not be a solution to some problems presented, but in many cases, there is a lender willing to offer you the right mortgage. Here at Eden Asset Finance Ltd, we have a  panel of lenders with the ability to deal with non-conforming mortgages and remortgages - so why not fill in our online enquiry form now or call us today and see what we can offer you.