When can a bank refuse a mortgage loan?

Moving decision made. Hundreds of properties viewed and selected from among them are the one and only dream apartment. Most people feel excited at the thought of a new apartment. Even those who do not like moving, packing and unpacking will confirm that buying a property is a truly unforgettable experience. Once the apartment has been chosen, it’s time to think about finances. Quite often, this problem is solved in one way – with a loan. Although the decision about it is postponed to the end, it is worth remembering that it is worth preparing in advance for making this important financial declaration. It is possible that the bank will reduce the loan amount or … refuse to grant a mortgage. Such a refusal can have many reasons, and banks do not always argue their decisions.

Employment contract

Employment contract

You don’t have an indefinite employment contract? For the bank this can be a big problem. If you have a fixed-term contract, order or work, your bank may refuse to grant you a loan. Many institutions also set such “backward limits” regarding employment. If you do not meet them, you can try to provide a work certificate, promise of employment, annex to the contract.

According to banks, similarly unstable employment is running a business. Very often, attention is paid to net income and the period of activity (from 12 to even 24 months). In addition, if your company is registered outside the country – you may also encounter difficulties in obtaining a loan.

It is also quite often found in employment mediation. This kind of work, which involves the delegation of an employee by a temporary employment agency to perform specific tasks, can make you unbelievable for the bank. Banks consider this form of employment unstable and this will certainly be the reason for refusing a mortgage.

Income counts

Income counts

Your salary is above the national average and you still got a denial? Perhaps the whole secret is that you have already incurred obligations. Do you pay installments for a car, kitchen or exotic vacation? Yes, this may be the reason for the refusal, because you may not be an attractive customer for the bank. Interestingly – those who have even a minimum income but who have no current obligations are better looked at.

What instead of a mortgage?

What instead of a mortgage?

So what can you do to get money when your bank refused you a mortgage? First of all, don’t break down and remember that banks don’t end the world. It is worth trying to change your financial situation and the form of the contract over the next years. The only solution that allows us to bypass unnecessary formalities are companies that grant loans. In this type of financial companies, it’s much easier and above all faster to get money in hand for the necessary expenses associated with an old or rented apartment. The Titania website is highly recommended, here you will not encounter complicated procedures – all you have to do is fill out a short application and accept the terms of the selected loan. The decision to grant funds is made within a few minutes, and the money immediately goes to your account.