How can I increase my chances of getting a mortgage?

Getting a mortgage is more than filling out an application form. Before you complete a mortgage affordability check or book a mortgage interview you will need to make sure your finances are as healthy as possible. Here are a few things you can do to give yourself the best possible chance of being accepted for your mortgage.

1. Save up the largest deposit you can

The bigger your deposit, the smaller the total cost of your mortgage will be. Mortgage rates are set out in different loan-to-value (LTV) bands with different rates accordingly. A larger deposit results in a lower LTV, and because you’re borrowing a smaller proportion of the property’s value, lower LTVs often have lower interest rates. Your LTV is calculated by:

Value of property – your deposit = Your mortgage loan

Mortgage loan ÷ by the value of the property = Your LTV

Ideally, you want to reach the lowest LTV band you can. Not only will this result in lower mortgage rates, but you’ll also have access to a wider range of mortgages, and it could be far better in terms of affordability calculations too – which means it’s more likely you’ll be approved. This means that if you’re close to a lower band, it might be worth saving a bit more so you can hit the threshold. Use our LTV calculator to help work out what you need to be aiming for.

2. Work out how much you can afford

As well as knowing how much you need to save, it’s important to work out how much you can afford when you get your mortgage as well. Our repayment calculator will show how much your monthly repayments could be based on your ideal mortgage, and you can use our borrowing calculator to see if the amount you’re hoping to borrow is feasible. Both of these can be used to help inform your property and mortgage search, reducing the chance that you’ll be overstretching yourself and helping prove affordability.

3. Check and improve your credit score

A mortgage lender will check your credit history as part of reviewing your mortgage application. Lenders will want to know that you can manage your debts and have a track record of paying these back on time. Your credit report shows your current and previous credit agreements (for example, any loans or credit cards), as well as any defaults, late payments or County Court Judgements (CCJs) made against you.

It’s important to check your report ahead of time so you know exactly what a mortgage lender will see. It’ll mean you can spot any errors – and ideally resolve them – before applying, and you’ll also be able to see if you have any old financial ties that need to be severed. Crucially, if your score is less than ideal, it’ll give you a chance to improve things before facing a rejection.

Bear in mind that your score will be compiled by one of three credit reference agencies, depending on the service you (or your lender) choose to view your report, and it’ll likely be slightly different for each. But they all operate on the same principles and are impacted by the same kinds of things; you can find out more on our credit check page, and if you need to improve your score, here are some tips to boost your credit history.

4. Get onto the electoral roll

If you’re not already, make sure you’re on the electoral roll. You will increase your chances of getting a mortgage by doing so, and it can be extremely difficult to be approved without it – it’s a key part of lenders’ identification and money laundering checks.

Essentially, the electoral roll is used by all lenders to verify you are who you say you are and that you live at your current address. You can check your credit file to see if you are registered on the electoral roll and that it’s up to date. If not, it’s free to register onto the electoral roll and can be completed online.

Note that if you are a foreign national and therefore not eligible to vote, you can add a notice to your credit file advising lenders that you have other documentation to prove your identity. Bear in mind too that lenders will also have differing rules on their requirements to identify foreign nationals, but a mortgage broker can assist in helping you understand the documentation you will need and the lenders most likely to accept your application.

5. Review your spending

You can improve your chances of getting a mortgage by curtailing your spending for the six months prior to making your mortgage application. Lenders need to be confident that your mortgage will be affordable, and this includes a stress test that you’d be able to meet the repayments should your interest rate increase. The greater amount of disposable income you have left each month, the easier it will be for you to pass these affordability checks.

Reducing your spending will also help you to save more for your deposit, potentially saving you money across the lifetime of your mortgage. So, use this as an opportunity to (for example) review your subscriptions and cut back on any you don’t desperately need, and avoid things like gambling, with these kinds of transactions often coming up as a red flag to lenders.

You’ll normally need to show at least three months’ worth of bank statements, so make sure those three months are as scaled back as possible.

6. Repay existing debts

To make sure your credit score is good enough for your mortgage application to be accepted, you should pay off as many outstanding unsecured debts as possible. This includes clearing outstanding balances on credit cards, store cards, loans and catalogue accounts.

Not only does this help to boost your credit score, but it will also reduce your monthly outgoings, helping you to meet the affordability requirements of mortgage lenders.

7. Manage your credit effectively

If you’re not able to repay all of your debt straight away, the next best option is to make sure you can manage it effectively. This means you should make on-time payments every single time, and in the case of credit cards, try to pay off more than the minimum each month. Make sure you’re not getting into difficulty with buy now, pay later (BNPL) schemes too, and ideally pay them off before interest begins accruing.

Keep in mind your available amount of credit, which is the total amount available across your credit cards, store cards and overdrafts. Some lenders assess affordability by using the potential amount of debt you could have in the future, so you need to make sure that your availability of credit is not excessive, and consider closing those credit accounts you no longer use.

8. Avoid high-cost credit

You should never get a payday loan and avoid using your overdraft if you want to boost your chances of mortgage acceptance. This is because lenders are likely to be cautious about your application if you’ve had a payday loan in the last six years or if you’re regularly in your overdraft, because these are considered signs of being in financial distress.

However, if you are confident that any former debt or spending issues are now resolved, a mortgage broker may be able to help you find lenders that cater to those looking for a mortgage with bad credit.

9. Pay your bills on time

You greatly increase your chances of being accepted for a mortgage if you have a clean record of paying your bills on time. A missed mobile phone payment, a late electricity payment or a late credit card payment will stay on your credit file for at least six years. Some lenders may accept elements of failed or late payments, but you may find you have fewer lenders to choose from and potentially higher interest rates.

10. Don’t apply for credit in the six months before your mortgage application

It isn’t only the total amount of debt that can affect your chances of being approved for a mortgage, but also the frequency and recency of other credit applications; your chances will be greatly improved if there are no other recent applications on your credit file.

While one credit application in recent months is not likely to strike you off every lender’s list (provided it isn’t a payday loan), you should make sure that any extra debt will not make your mortgage unaffordable. Not only that, but multiple credit applications will be viewed as a sign of financial distress and your credit score is likely to dip after each application, both of which will significantly reduce your chances of being accepted for a mortgage.

11. Try not to change jobs

Lenders prefer stability and knowing that your income is secure. Some lenders will not accept applications from those still in a probationary period, so if you can, it is best to avoid switching jobs when applying for a mortgage. If you do need to change jobs, you should speak to a mortgage broker who can save you a lot of time in finding lenders that will accept you.

12. Get your paperwork ready

Being organised can help to increase the speed of your mortgage application, so you should try to compile everything you need for your application ahead of time (you may need certified copies or originals of certain documents, which could take time to arrange). You’ll likely need:

• bank statements
• payslips (including evidence of bonus payments) and your latest P60
• savings account statements
• ID documents (such as a passport or utility bill)
• details of your current credit agreements
• tax returns (if you are self-employed or derive your income from a business).

You’ll also need to show evidence of benefit income if you are using this as part of your mortgage application. You can find out more about what income can be used for a mortgage in our guide.

13. Compare mortgages

Once you have your deposit and are ready to make an application, it’s important to compare the options thoroughly so you can be confident you’re getting the best deal. Don’t just go to your bank as they may not have the best options; instead, you can look for the best mortgage rates on our charts, or speak to a broker who can help you find more tailor-made options.

However you start your search, make sure to look at the total cost of borrowing, especially if you plan to include your mortgage fees in the total you plan to borrow. In some cases, a slightly higher rate with a lower fee can work out cheaper over the mortgage term. You may also want to consider different types of mortgages depending on your circumstances, such as shared ownership, offset or guarantor mortgages.

14. Get an agreement in principle

Once you’ve settled on a preferred mortgage deal, you can approach the lender for an agreement in principle. Also known as a mortgage in principle or decision in principle, this is a simple agreement based on a soft credit check that will indicate whether or not the provider will lend to you, and if so, how much they’ll be willing to offer (note that sellers will normally need an agreement in principle before they agree to proceed with the sale).

This can greatly improve your chances of being accepted for a full mortgage because you’ve already been through this initial check, but because it’s a soft credit check it won’t affect your credit score, and therefore won’t impact your future applications even if you’re unsuccessful. There’s also no obligation to get the mortgage afterwards, so can be a very helpful – and necessary – step in the process.

15. Speak to a broker

While there’s a lot you can do to increase your chances of getting a mortgage, one of your best options will be speaking to a mortgage broker. They’ll help you understand how lenders make their decisions and will go through your finances with you to ensure your application is in the best possible shape; they’ll help you to understand how much you can afford, the costs of buying a home and ultimately can narrow down your ideal mortgage options.

Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.

If you're ready, you can speak to our preferred broker Mortgage Advice Bureau to get the process started.