When it comes time to get your mortgage renewed you have to decide whether or not you want to work with another lender or stick to your current one. Some people usually make the decision based upon which lender has the best offer, but this isn’t always the case. If you’re denied a mortgage renewal from one lender, then you need to choose another one.

Here is what you need to do if you’re denied by the lender you have now or a new lender and what options you have when it comes to your mortgage renewal.

If You’re Denied for Mortgage Renewal by Your Current Lender

If you make all payments with your current lender on time, you shouldn’t have to worry about mortgage renewal denial. You may want to look around for a new lender but by staying with your current lender you should probably re-qualify for a mortgage right away, so this should be your starting point for renewal. If you sign a renewal notice with your current lender this can ensure you that the mortgage is going to be renewed.

The current lender has a look at your current financial situation when you renew your mortgage, and if you have more debt than you can repay or that you have a financial situation that is negative, they may make the decision to not renew your mortgage with them.

If You’re Denied for Mortgage Renewal with a New Lender

If your current lender decides not to renew your mortgage, or you feel that you just want to shop around for a new lender then you can choose this option to renew your mortgage. Having your mortgage renewal decline is going to be much higher with a new lender than the older one. This can be the case because you need to send in a new mortgage application and then meet the criteria that the new lender has for mortgage approval.

The new lender doesn’t have anything to go on regarding your financial situation. They have to verify your income and you need to meet their credit requirements. If you have a damaged credit score poor employment history, missed loan repayments or missed mortgage payments this can harm the mortgage application and the lender may deny the application.

Things to Do if You’re Denied a Mortgage Renewal

  • If a new lender has denied your mortgage application, you should ensure that the current lender will renew your mortgage application
  • If both the old and new lender decline to renew your mortgage, you must look at B lenders which specialize in bad credit which are bad credit institutional lenders and trust companies
  • If you have low credit you may not be able to work with even a B lender. If this is the case, you can talk with a private lender or you might want to sell the home

It’s quite rare that your circumstances will get this bad, but it can happen if your finances are very poor. If you make mortgage payments on time, it’s quite unlikely that you will have any mortgage renewal problems.


Mortgage renewal denial is a rare occurrence, but it does happen.  Make sure you reevaluate your financial situation prior to the renewal to ensure that everything is going to be fine once you renew the mortgage.  If you make your payments and otherwise have a stable financial situation, you won’t have much of an issue.