What Is a Mortage Renewal?
What Happens When You Renew Your Mortgage With a New Lender?
Why Do Lenders Deny Mortgage Renewals?
The most common reason why lenders fail to renew mortgages is payment default. If you consistently miss monthly payments, not only do you face a renewal rejection, the financial institution might foreclose on your property.
However, even if you never missed a payment, the lender might still decide to deny renewal. This would be the case where your credit reports and scores do not appear promising. Likewise, if you have a backlog of debts, the bank might choose not to extend the mortgage term because you might file for bankruptcy.
Also, if you have an unstable stream of income or you lost your job or switched to a low paying one, the lender can still reject a mortgage renewal. Summarily, your financial state must appear stable to increase your chances of getting your mortgage renewed.
Need Help With Your Mortgage Renewal? Professional Mortgage Brokers Can Help
Mortgage renewal may seem easy and direct, but there can be several hiccups. Therefore, contact a professional mortgage broker before commencing the mortgage renewal process. Our mortgage brokers act as the go between for the borrowers to the lenders to find the best option for them and interest rate.