How to improve your mortgage application

Some lenders offer 95% mortgages, meaning you’ll only need a 5% deposit. For example, if the property price is £150,000, you’ll need a £7,500 deposit to borrow £142,500. However, putting down a slightly bigger deposit could improve your prospects of getting a mortgage.
Read our 5 tips that could help you save for a deposit.

How does a larger deposit improve the chances of getting a mortgage?

A bigger deposit could mean you’ll need to borrow less money to buy the property, so you’ll have a lower loan-to-value (LTV) ratio. You may also get access to lower interest rates and, therefore, lower monthly payments.

Remember that you’ll also need to cover additional costs, such as survey costs, conveyancing fees, and Stamp Duty Opens an overlay [Will show a security message first] (if payable) when buying a home.

Before starting a mortgage application, check your credit score and fix any mistakes. There are things you can do to help improve your credit score, such as joining the electoral roll and taking care not to miss or make any late repayments.

See how you can improve your credit score.

How does improving your credit score help your mortgage application?

Lenders use your credit score, among other factors, when deciding whether to accept your mortgage application. It can show them how you manage debt and other financial commitments. A good credit score can help improve your prospects of getting a mortgage.

Getting on top of your finances before you make your mortgage application is important.

If you’re over-extending yourself or struggling with money, your application may not be approved.

Missed and late payments can hurt your credit score. You may also be charged late payment fees, so try setting up a Direct Debit on your accounts to make sure bills are paid on time.

If you need support, we can help with budgeting and money management advice.

Lenders need to be confident you can make your mortgage repayments so they’ll take any existing debt into account when reviewing your application.

Reducing existing debt you may have before you apply can be a good idea. Plan a budget to see where you can make changes to your spending and free up money. You can then decide on a plan to pay off the debt.

For example, you could start by:

• Paying off the debt with the highest interest rate first to reduce the amount of interest you’re paying
• Paying off the smallest debt first to reduce how many debts you have

You’ll still need to meet the minimum payments on all debts.

Organising what you need can help speed up the mortgage application process. Before you start:

• Check all your details are correct and up-to-date, especially on your credit report
• Remove yourself from joint accounts that you share with others (like your flatmates or ex-partners), as their credit report can affect yours
• Find out what documents you need and have them ready to hand
• Make sure your application information matches the documents you provide

How important is your application when getting a mortgage?

Your application is very important. Take the time to make sure everything is accurate to help improve your chances of getting approved. Check and double-check (even triple-check if you’ve got time) before you submit.

And only apply for a mortgage you can afford, even if your circumstances change.

Think carefully before securing other debts against your home. Your home may be repossessed if you don't keep up repayments on your mortgage.