Getting a mortgage in the UK has become more detailed, with lenders looking closely at every part of your finances.
Whether you’re buying your first home, moving house, or sorting out a remortgage, knowing what lenders check can make a real difference to your chances of approval.
Many people focus solely on their credit score, but that’s just one piece of the puzzle.
Lenders assess your whole financial picture, from your spending habits to your job stability. Some of these checks might surprise you – and understanding them puts you in a better position to get your mortgage approved.
Let’s look at exactly what UK mortgage lenders examine and how you can strengthen your application. We’ll cover everything from the obvious factors to those you might not have thought about.
How Mortgage Lenders Assess Your Application
Mortgage lenders follow strict rules when deciding who to lend to.
Since 2014, the Mortgage Market Review has meant they must check affordability much more thoroughly than before. They’re not just looking at whether you can afford payments now – they need to know you can manage them even if interest rates rise.
Each lender has their own way of scoring applications, but they all need to make sure you’re a reliable borrower.
They’ll check your income, outgoings, and other factors that show how well you manage money. Some lenders might be more flexible than others with certain aspects, which is why getting rejected by one doesn’t mean you’ll be rejected by all.
Read more: What to do if your mortgage is declined
The 10 Key Factors Affecting Your Mortgage Application
Your Credit History
Your credit history shows lenders how well you’ve managed money in the past.
They’ll look at your record of paying bills, loans, and credit cards over the last six years. But don’t worry if it’s not perfect – lenders understand that most people have ups and downs.
What matters most is your recent history.
Late payments from five years ago won’t carry as much weight as ones from the last year. You can check your credit report for free with services like Credit Karma or ClearScore. If you spot any mistakes, get them fixed before applying.
If you have joint accounts or other financial associations, these will appear on your credit report. Being financially linked to someone with poor credit can negatively affect your own creditworthiness. If this is the case, consider disassociating yourself from the individual in question.
Any public records like County Court Judgments (CCJs), Individual Voluntary Arrangements (IVAs), or bankruptcies will also appear on your credit report. These can have a long-lasting negative impact on your ability to secure credit and should be avoided whenever possible.
Read more: Will Checking My Credit Report Affect My Credit Score?
Income and Employment
How much you earn affects how much you can borrow, but it’s not just about the amount.
Lenders need to know your income is reliable. If you’re employed, they’ll want to see payslips and bank statements. They’ll look at your basic salary and some consider bonuses and overtime too.
Self-employed?
You’ll need to show accounts or tax returns, usually for the last two years. Many lenders now understand modern working patterns, including contract work and multiple income streams. Just make sure you can prove all your earnings with proper documentation.
Read more: How much do you need to earn for a £500,000 mortgage?
Deposit Size and Source
The bigger your deposit, the more likely you are to get approved.
A larger deposit often means better interest rates too. But lenders also care where your deposit comes from. They’ll accept savings, inheritance, or money from selling another property.
If someone’s giving you money towards your deposit, lenders call this a ‘gifted deposit‘.
They’ll need a letter from the person giving the money, confirming it’s a gift and not a loan. Keep records of where your deposit money came from – lenders need to check it’s from legitimate sources.
Read more: Guide to Deposits
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Current Debts and Outgoings
Lenders look at what you spend each month, including loans, credit cards, and regular bills.
They’re checking if you can afford mortgage payments on top of your other commitments. But they also look at discretionary spending – things like takeaways, shopping, and entertainment.
Having other debts doesn’t automatically mean rejection.
What matters is the balance between your income and outgoings. Consider reducing non-essential spending before applying and try to pay down any high-interest debts.
If the ratio of debts to your income is high, this will reduce your borrowing power.
Read more: Mortgage repayments Guide
Length of Employment
Job stability matters to lenders, after all, it’s your income that pays their debt back.
If you’re employed, they like to see you’ve been in your current job for a while. Recently changed jobs? You might need to wait until you’ve passed your probation period before applying.
For self-employed people, most lenders want to see at least two years of accounts. Some might consider one year if you’ve got a strong track record in your industry.
If you’re planning to change jobs, it might be worth getting your mortgage sorted first.
Read more: Applying for a mortgage
Property Type
Not all properties are equal in lenders’ eyes.
Standard houses and flats usually cause no issues. But unusual properties – like those with thatched roofs or timber frames – will reduce your choice of lenders.
New-build properties often need bigger deposits. Flats above shops or high-rise buildings can face extra checks. If you’re buying something unusual, it’s worth checking with a broker first about which lenders might be more open to that type of property.
Read more: Types of Houses
Bank Account Conduct
Your bank statements tell lenders a lot about how you manage money. They’ll check for things like bounced direct debits or going over your overdraft limit. Good account management shows you’re responsible with money.
Keep your account in good order for at least three months before applying for a mortgage.
Try to avoid gambling transactions or payday loans, as these can worry lenders. Regular savings, even small amounts, can help show good money management.
Address History
Lenders like to see a stable address history.
Being on the electoral roll at your current address helps prove your identity and stability. If you’ve moved around a lot, you might need to explain why.
Keep records of your previous addresses for the last three years. Make sure you’re registered to vote at your current address. If you live with parents or rent, you still need to be on the electoral roll.
Read more: What information is on a credit report?
Age and Term Length
Your age affects how long you can borrow for.
Lenders have maximum age limits at the end of the mortgage – often between 70 and 85. They’ll want to know about your retirement plans and pension income if the mortgage runs into retirement.
Younger borrowers might face different challenges, like having less credit history or being early in their careers. But many lenders have products designed for first-time buyers that take this into account.
Previous Applications
Failed mortgage applications can affect future ones, especially if they’re recent.
And multiple applications in a short time will harm your credit score. That’s why it’s worth getting advice before applying.
If you’ve been rejected before, find out why. Work on fixing any issues before trying again. A mortgage broker can help match you with lenders more likely to accept your circumstances.
Every time you apply for credit, a ‘hard search‘ is performed on your credit report. Multiple applications in a short period can be a red flag for lenders, as it may indicate desperation for credit. Always be mindful of this when applying for new credit lines.
Read more: What to do if your mortgage is declined
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How These Factors Work Together
These factors don’t exist in isolation – they all connect.
A strong performance in one area can offset weakness in another. For example, a larger deposit might help balance a shorter employment history.
Different lenders weight these factors differently.
Some focus more on affordability, others on credit history. Understanding how they work together helps you focus on strengthening the right areas of your application.
Steps to Strengthen Your Application
Start preparing early.
Check your credit report and fix any issues. Save regularly to show good money management. Get your documents in order – payslips, bank statements, and proof of deposit.
Reduce non-essential spending for a few months before applying.
Pay bills on time and stay within overdraft limits. If you’re self-employed, work with an accountant to present your income clearly.
Read more: How to get mortgage ready
How a Mortgage Broker Can Help
A whole of market mortgage broker knows which lenders suit different circumstances.
They understand lending criteria in detail and can save you from applying to lenders likely to reject you.
Brokers often have access to deals you won’t find directly.
They can explain what different lenders need and help you prepare your application properly. Their expertise becomes even more valuable if your situation isn’t straightforward.
Looking for a mortgage?
Get in touch with an independent broker who can look at your situation and find the right lender for you. They’ll guide you through the whole process and give you the best chance of approval.
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See your data from 4 Credit Reference Agencies, not just 1
Get an independent view with your checkmyfile Credit Score
View up to 6 years’ credit history
Easy to cancel – by Freephone or even online
A guarantee never to sell your personal data
Consistently rated ‘Excellent’ on Trustpilot
This is a 30-day free trial, and a recurring £14.99 thereafter unless the subscription is cancelled, which can be cancelled at any-time.
