Applying for a mortgage is one of the biggest financial decisions you’ll ever make—but even strong applicants can face rejection. At Mortgage Navigators, we believe the key to success lies in understanding what causes applications to be declined—and proactively addressing those issues before you apply.
Below, we break down the most common reasons mortgage applications are declined in Ireland and offer practical guidance to help you prepare.
Lenders in Ireland check your credit record using the Central Credit Register (CCR), which logs all personal loans, credit cards, and mortgages over €500.
Common red flags:
Missed or late repayments
Credit card defaults
Legal judgments or insolvency
Recently opened or high-limit credit facilities
What to do:
Request your free CCR report at centralcreditregister.ie
Disclose all debts upfront, including Buy Now, Pay Later agreements like Humm or Finance for You
Avoid taking out new credit in the months leading up to your application
Mortgage Navigators asks all clients to complete a CCR check early to eliminate surprises later in the process.
Lenders expect at least 12 months of steady income. Irregular, undeclared, or unverifiable income often leads to rejection.
Common issues:
Zero-hour or short-term contracts
Frequent job changes
Self-employed income without documentation
Cash-in-hand or undeclared earnings
What helps:
Full employment contracts, payslips, and bank statements
For self-employed individuals: 2 years of Form 11s, Chapter 4s, and a letter from your accountant
Up-to-date tax filings
Your income situation is reviewed during our initial assessment call so we can identify any risks early.
Lenders will evaluate how much of your income is already committed to debt repayments. If it’s too high, your application may be declined.
Included debts:
Personal loans
Car finance
Credit card balances and limits
Buy Now, Pay Later finance (e.g. Humm, Klarna, Finance for You)
If more than 35–40% of your net income goes toward debt repayments, this is likely to be an issue.
What to do:
Pay off credit card balances and reduce unused limits
Avoid taking on new debt before applying
Include all loans when disclosing finances—lenders will see them on your CCR anyway
Sometimes the problem lies with the property, not the applicant.
Lenders want to ensure the property is structurally sound, insurable, and likely to retain value.
Common issues:
Unapproved extensions or missing planning permission
Properties in flood-prone or subsidence areas
Structural defects identified in the survey
Non-standard construction or mixed-use units
Lenders will also require a valid home insurance policy that includes flood and subsidence cover.
Mortgage Navigators works closely with solicitors and surveyors to identify and resolve these issues early.
Lenders assess how you manage your money, not just how much you earn.
Red flags:
Overdraft usage
Gambling transactions
Inconsistent or minimal savings
Cash rent payments with no proof
Lenders prefer:
Savings by standing order that mirror future mortgage repayments
Clean, predictable banking history
Direct debit or standing order rent payments with a clear trail
We help clients build a strong savings and banking profile that supports their mortgage application.
MPI is legally required in Ireland unless you’re exempt due to specific circumstances. Delays in securing MPI can halt a drawdown—even if the mortgage is otherwise approved.
Common challenges:
Health issues leading to application declines
Delays in processing
Incomplete or inaccurate disclosures
Mortgage Navigators ensures all clients apply for MPI early in the process to prevent any last-minute issues.
Most mortgage declines are preventable with the right preparation. At Mortgage Navigators, we take a proactive approach to eliminate issues before they arise.
We help you:
Understand your credit report
Prepare full income and employment documentation
Strengthen your savings history
Secure mortgage protection early
Resolve potential property issues quickly
Start with a free, no-obligation assessment call. We’ll review your situation and give you honest feedback—so you’re ready to apply with confidence.
Article by Margaret Barrett
Managing Director at Mortgage Navigators,