Boost your mortgage chances

Don't expect every lender to fancy you

Each lender has its own method to decide whether to lend to you. If you neatly fit its criteria, a lender might accept you quickly. If you don't really fit, chances of rejection increase.

But for people in the middle, it's more of a grey area and the lender's decision will be based on several factors. These include:

• How much you want to borrow. The amount you want to borrow will be considered in relation to your household income and how much you can afford.

• Size of deposit. The bigger your deposit, the less 'risky' you'll be seen as.

• Incomings and outgoings. The money coming in and how much you spend.

• Employment status. Permanent employees can find it easier to get a mortgage than temporary staff, the self-employed, freelancers, contractors and other occupation types. If you'd struggle to get a mortgage because of this, a mortgage broker can place you with a lender more likely to accept you.

• Credit rating and history. More on this below in point two.

• Existing debt. From credit cards, loans, overdrafts, buy now, pay later, etc.

If no red flags are raised, your acceptance chances grow – but aren't guaranteed.

Lenders can also change their criteria, so if you've been accepted for a mortgage in the past don't just assume you will again (for instance, when remortgaging).

Quick questions:

Check your credit report before the lender does

You need to convince mortgage lenders you've got the financial discipline required to pay back your mortgage. One way they assess this is by searching your credit report(s) to check if you've got a good repayment history.

A credit report lists details from any accounts open in the past six years, such as:

- Credit cards
- Loans
- Overdrafts
- Mortgages
- Some utilities
- Buy now, pay later payments

The three UK credit reference agencies are Experian, Equifax and TransUnion. Each produces a separate credit report on you. It's free for you to check these reports – see our Check your credit report for free guide for how to do this.

Check each report is up to scratch, as you don't know which a lender will check.

Consider joining MSE's Credit Club too, where you can check your TransUnion credit report for free and, uniquely, see what we call your 'Credit Eligibility Rating'. MSE Credit Club also indicates how much a mortgage lender might let you borrow.

Can I get a mortgage with a poor credit report?

Having a poor credit history might not automatically rule out your chances of getting a mortgage, but it will certainly dent them. So before applying, take the time to get your credit report into shape – see our Credit scores guide for how.

Quick questions:

Correct credit report errors promptly

If information on your credit report is wrong, you've a right to do something about it – either by having the error corrected, or, at the very least, having your say.

The first step is to check if the error is also on your credit file held with the other agencies, then to speak with the lender. If this doesn't work, the free Financial Ombudsman could step in.

Here's our step-by-step help:

• Step 1. Check your file with other agencies. See if your file with each credit reference agency has the same error. If you get it corrected with one agency the information should be sent to the others, but it's better to contact them yourself to ensure your file with all three have the right details.

• Step 2. Contact the lender. Most will have a system in place to deal with disputed defaults. If you have proof, it should be resolved quickly. Contact it, say you think the error is unfair and ask it to wipe it from your credit file.
  
  If it's a genuine default and you're prepared to settle with your lender, you could ask that as a condition of settlement the default is wiped from your file.

• Step 3. Speak with all three agencies again. If the lender's not playing ball, ask each credit reference agency to add a 'notice of correction' to your file. This is where you can explain the default. Be clear and concise, as this explanation will be recorded on your credit report for other lenders to see.
  
  This will slow future credit applications down, but if the error is a substantial default which is likely to stop you getting credit, that's usually not a problem.

• Step 4. Complain to the Ombudsman. If you believe the error is unfair and contacting the lender hasn't worked, you have the right to go to the free Financial Ombudsman Service. It's the official body for settling disputes between individuals and financial companies, an independent adjudicator.
  

  It can rule both that the debt is unfair (if it is) and that the default can be wiped.

Quick question:

Register to vote (it's more key than you think)

Not registered to vote? This can potentially scupper your mortgage chances.

While you can have a perfect credit report without being on the electoral roll, it's very difficult to get a mortgage if you're not on it. This is primarily because lenders use electoral roll data when carrying out its identity and background checks.

Additionally, being on the electoral can help improve your credit score.

Your credit file will say if you're on the electoral roll or not, but you can also check with your council. Do this as early as possible. While you can usually be added within a month, in late summer and early autumn it could take longer.

Where you're not a UK, Irish or EU national (or a Commonwealth citizen with permission to stay in the UK) and therefore can't get on the electoral roll, you can put a notice of correction on your file instead, saying you have other proofs of address and ID you can offer lenders (assuming that you do).

Not registered to vote? See Gov.uk for how to get on the electoral roll.

Delink from ex partners or old flatmates so their credit histories don't wreck your chances

You become financially linked to someone else if you apply for joint credit with them, like a joint bank account, mortgage or loan. If you're now separated or have nothing to do with them, you should de-link.

If not, any late payments or money mistakes they make reflect badly on you. Ask the credit agencies for a notice of 'disassociation'.

You may still be linked to old flatmates if you had a joint bank account for bills, so it's worth checking their credit history isn't impacting yours. If it is, de-link yourself.

Even if the person you're linked to has a good history now, you risk problems in future if they miss payments. Our Credit scores guide explains how to delink.

Carefully manage your available credit

This is all about how much credit you have available to spend on credit cards and overdrafts. It's the difference between your combined debit balances on your cards and bank accounts and your combined credit limits/overdraft limit.

You need to strike a balance between not having too much available credit – as mortgage lenders may think you could rack up more debt – and not getting too close to your limits, which makes it seem you're at the edge of your finances.

Here's what credit reference agency Experian says:

• Lenders prefer debts to make up less than half your credit limit. But to be safe, keep any debts equivalent to 25%. So if you've a credit limit of £10,000, lenders rather you use less than £5,000, but ideally stick nearer to £2,500.

• If using a lot of your available credit, avoid lowering your limits so you're suddenly close to the edge. Similarly, don't have tens of thousands of pounds of available credit unnecessarily – mortgage lenders may get twitchy about you suddenly becoming far more indebted than you currently are.

Some mortgage lenders might also include buy now, pay later debts and available credit into their equations. So bear this in mind when managing your credit limit.

This is an art, not a science, and lenders' views of how much credit you 'should' have differ. Try to average around 25% of your credit limit, and definitely keep it below 50% in all cases. Of course, if you can pay off debt, you should do so.

Consider closing old, inactive accounts

If you're not using an account, consider closing it. It might be a fraud risk, or display out-of-date details.

Having said that, when applying for a mortgage, longer, stable credit relationships are a positive. So, if you've two credit cards, one recently opened and an older one, it's probably not worth closing the older one before the mortgage application as you could lose the credit score boost it gives you.

Our Credit scores guide explores when you should/shouldn't close old accounts.

Decided to close an account? Remember, just cutting up the card isn't good enough – you must tell the bank you want the account closed.

Always pay ALL your bills on time

It's obvious, but important. All missed payments on your credit file count against you, so it's vital to keep up all repayments on ALL your outgoings.

A missed payment can count against you for at least a year, and it'll stay on file for six years overall. Just one missed payment could be the difference between getting a mortgage and not.

If you're applying for a mortgage specifically from a lender who you've got a history of missed payments with, you'll probably find it even harder to get accepted. The lender will still consider your mortgage application, but you'll likely need to provide a convincing explanation as to why you missed repayments previously.

Consider setting up a direct debit to ensure all payments are made on time.

Hold off applying for other credit in the run-up

Avoid applying for credit in the three months before getting a mortgage – it could hinder your score and lead to rejection. Some suggest at least a six-month gap.

Lenders search your credit file every time you apply for a loan, credit card, overdraft, and, increasingly, mobile phone / utility contracts. This search, known as a 'hard credit check', appears on your file even if your application is unsuccessful.

The more of these searches you have in a short time, the less likely you are to be granted credit, as lenders could view you as desperately seeking borrowing.

Where you NEED to apply for credit, one application shouldn't hurt that much. But if it's for a payday loan, some mortgage lenders will reject you. Around a fifth of first-time buyers have been rejected for a mortgage because of payday loans. 

See our Credit scores guide for more on spending credit applications wisely.

Keep tabs on your spending before you apply

A mortgage lender will need to check your 'affordability'.

This includes a requirement to 'stress test' you – essentially checking you'd still be able to afford the mortgage if interest rates increased. In fact, stress testing forms a key element of determining your 'affordability' and whether a lender will accept you for a mortgage.

As part of this process, you'll need to provide thorough details about your incomings and outgoing on the mortgage application form. Some lenders will also ask you to provide recent bank statements, to make sure everything matches up. If you've missed anything out, a lender is likely to ask for an explanation.

For more on how lenders assess affordability, and to get an idea of how much you might be able to borrow, see our How much can I borrow? guide. 

Avoid major new spending commitments

Lenders tend to use statistical modelling to work out how much someone in your position typically spends on essentials, such as food, housing, energy bills. So cutting back on these isn't likely to boost your chances of mortgage acceptance.

But DO avoid major new spending commitments in the weeks and months leading up to a mortgage application (let's call it 'discretionary' spending). For example, a new car on finance (unless it's essential), or an expensive membership at a gym.

The less 'extravagant' you can be with your discretionary spending in the run up to a mortgage application, the more this can boost your perceived 'affordability'.

See our How to budget guide for help and tips on sticking to a spending regime.

Quick question:

Stay out of your overdraft

Constantly being in your overdraft is not a good look in the eyes of lenders. In fact, some lenders may not tolerate you being in your overdraft in the last three months.

No choice but to be in your overdraft? Then should you be getting a mortgage?

For a cheaper overdraft (if you really need it), see our Best bank accounts guide. But always budget to clear the overdraft debt as soon as possible.

Be careful of what appears online about you

In an age where checks and verification by lenders are increasingly carried out online, be careful of what appears about you on social media and search engines.

For mortgage lenders, it's not just about whether you can afford the mortgage. They also want to ensure people they lend to won't pose a reputational risk.

So social media posts boasting of excessive spending, unprofessional behaviour and extreme views could easily give lenders the jitters. One mortgage broker told us it's not uncommon for red flags to be raised because of a Google search.

If you're self-employed and run your own business, a lender is likely to search online for confirmation your business is still trading and faring well.

Make paying your rent boost your credit rating

Do you always pay your rent on time? If so, there are schemes that private renters and social housing tenants can use to boost their credit ratings.

You'll need to be signed up to these schemes for at least a few weeks before your rental payments start appearing on your credit file, and the longer you're signed up for the bigger an impact paying your rent on time should have on your file.

Renters and tenants have reported seeing significant improvements to their credit rating as a result, though it's hard to say what size the typical improvement is.

But be aware that while on-time rental payments will appear on your file, the reverse is also true, meaning late or missed payments will be added too – something that could damage your file and cause mortgage rejection.

Read more about how these schemes work in our Credit scores guide.

Put down £100 more than you have as a deposit – it can ease acceptance and boost your borrowing

Mortgages get cheaper at 90%, 80%, 75% and 60% loan-to-value (so where you've a 10%, 20%, 25% or 40% deposit). If you're near such a border, try pushing to it to reduce the interest rate you'll pay.

For example, you'd get a better interest rate if you applied for an 80% mortgage (a 20% deposit) than if you applied for an 81% mortgage (a 19% deposit). Our How much can I borrow? guide explains why.

But there are also two benefits of pushing an extra £100ish beyond a significant LTV border (for example, adding £100 on top of a 20% or 25% deposit). It can:

• Boost your chances of mortgage acceptance. As it no longer looks to mortgage underwriters like you're scraping to get to the mortgage band limit.
  

• Increase your borrowing limit. For example, 4.75x your income, not 4.5x. 

Brokers tells us even an extra fiver can help in some cases, like where you apply for a high loan-to-value mortgage (95%, 90%) or to a big lender (as they process applications using computer algorithms), or where your credit file is patchy.

As it can never harm, you may as well try.

Sort your paperwork to speed things up

Mortgage lenders need proof of your income. So before applying, it makes sense to get your paperwork together. Sending all documents in one batch speeds up the process as it reduces the chances of your application being held up.

If your lender won't accept PDFs, uploads or printed bank statements, you may need your bank(s) to send you original copies. Get these a few weeks in advance.

Your lender may want to see any or all of your:

📄 Last three months' bank statements

📄 Last three months' payslips

📄 Proof of bonuses/commission 

📄 Latest P60 tax form (showing income and tax paid from each tax year)

📄 Last three years' accounts or tax returns

📄 Proof of deposits (savings account statements)

📄 ID documents (usually a passport)

📄 Proof of address (utility bills or credit card bills, for example)

📄 A gift letter. If you're getting deposit help, the lender needs to know it is a gift (not a loan), and that the giver won't part own the home.

Quick question:

Fill out the application form correctly

Avoid delays in getting a mortgage by filling out the application form correctly.

Even if a broker applies on your behalf, you'll need to double check that what's been written down about you is correct. So make sure that you:

✅ State your income exactly (don't round up).

✅ Give your full name, include middle names.

✅ Declare ALL your debts. Withholding this info can mean a quick decline.

✅ Get your three-year address history exactly right, including postcodes.

✅ Give honest answers when asked about how much you spend.

Test drive your mortgage chances

Using the steps above, your finances should be in great shape. To test this, a mortgage agreement in principle (AIP), offered by many lenders, is the acid test.

An AIP is a conditional offer saying you may be accepted, based on a quick check of your income and, probably, your credit file. However, it's not a guarantee you'll be accepted when you actually come to applying for a mortgage.

For first-time buyers, an AIP can boost estate agents' or sellers' confidence you'll be able to complete the sale, so may increase your chances of having an offer accepted. Some sellers may only accept viewings where you've had an AIP.

It's worth benchmarking a top deal with our Mortgage Best Buys tool and then asking the lender (or your broker) to see if you pass the checks for their AIP. Don't worry – just as it doesn't tie them in to lending to you, an AIP doesn't mean you have to borrow from that lender if you spot a better deal further down the line.

But watch out: too many AIP checks can harm your credit rating if the lender carries out checks that mark your file, potentially denting your mortgage chances.

Some lenders offer a 'soft' search option (which won't mark your credit file) when it comes to AIPs. Find out from the lender which it is before agreeing to an AIP.

Rejected? DON'T automatically apply again

If you're rejected – FREEZE! Don't automatically apply again with a different lender. Too many mortgage applications will mess up your credit score.

Instead, first thing is to check your credit file again. Have you missed something?

At all costs, avoid the rejection spiral. The nightmare example works like this:

🖊️ You apply
❌ You get rejected (sometimes falsely, due to an error)
🖊️ You apply elsewhere
❌ You get rejected again

This goes on, until finally you check your credit file and get the error corrected. So:

🖊️ You apply again
❌ You're rejected because of too many recent 'searches'

If you're rejected once, go back to the top of this guide and follow the steps again. Otherwise, you may mess up your credit score as more applications mean more searches, which will only make it even harder to get accepted for a mortgage.

If you haven't missed anything and your credit file looks in order, it could just be that the lender had its own reason for turning you down. It's worth asking the lender why – it should indicate the reason (which'll hopefully help going forward).