When drafting a denial letter for a mortgage loan application, it's crucial to maintain clarity and politeness while conveying the decision. Clearly state the reason for denial based on the assessment of the documents provided by the applicant. Express gratitude for the application and offer assistance for any queries the recipient may have.
Sample Denial Letter for Mortgage Loan
To,
_________ (Mention Name)
_________ (Mention Address)
Date: __/__/_____ (Mention Date)
From,
The Support Department,
_________ (Bank’s Name)
_________ (Bank’s Address)
Subject: Response Letter for Mortgage Loan Demand Letter
Sir/ Madam,
As per the recent request letter that we have received from your end, we first thank you for applying for a mortgage loan in our bank for an amount of ___________ (mention amount).
However, on observing the documents which were deposited by you, we apologize to inform you that you are ineligible for the said loan. The reason behind the same is _____________ (mention reason). We believe you would understand the same.
We apologize for the same. In case, you have any queries, you may respond to this letter or contact our customer care.
From,
_________ (Bank name),
_________ (name and stamp)
_________ (contact details)
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Deepanshu Thakral 
Rahul Sharma