Factors affecting mortgage approval
What lenders look at when they decide whether to approve your mortgage, and what you can do to improve your chances.
Lenders weigh up several things when you apply. Understanding the main factors affecting mortgage approval helps you prepare, so there are fewer surprises when you apply.
No one factor decides the outcome and every lender has its own rules. We cannot guarantee any result, but we can help you present your case as well as possible. Your first chat is free and there is no obligation.
The main things lenders look at
Income and affordability come first: can you comfortably afford the payments, including if rates rise? Lenders also look at your outgoings, debts and any dependants.
Your deposit matters too. A bigger deposit often means more choice and can lead to lower rates. The size of the loan compared to the value of the property is known as the loan to value.
Credit history, job and property
A clean credit history helps, and missed payments, defaults or county court judgements can limit your options. Lenders may also consider how long you have been in your job or self-employed.
The property itself has to meet the lender’s criteria, for example construction type, condition and, for flats, the length of the lease.
How to improve your chances
Check your credit report, avoid new credit before you apply, keep your finances tidy and save as large a deposit as you reasonably can. Talk to an adviser early, as we can match you to lenders more likely to say yes. See mortgage advice in Portsmouth.
Factors affecting mortgage approval: your questions answered
What is the most important factor for mortgage approval?
There is no single factor. Lenders look at income, outgoings, credit history, deposit and the property together.
Can I get a mortgage with a poor credit history?
Sometimes. Some lenders specialise in complicated cases. We cannot promise an outcome, but we will tell you honestly what looks possible.
Does my deposit affect approval?
Yes. A larger deposit can open up more choice and often better rates.
Does the property affect approval?
Yes. Lenders check that it meets their criteria, and the valuation can affect how much they will lend.
Do I need to pay to speak to an adviser?
Your first chat with us is free and there is no obligation. We will explain how we are paid before you decide to go ahead.
Your first chat is free, and there's no obligation.
Tell us what you're planning. We'll tell you honestly what's possible.