Boost your mortgage chances

Sort your finances before you apply

Updated 23 September 2024

Getting a mortgage can seem like climbing Everest, especially with high interest rates and the cost-of-living crisis eating into your budget... but there are ways you can improve the odds. This guide has our 18 top tips on how to boost your chances of getting accepted for a cheaper mortgage deal.

Don't expect every lender to fancy you
Every lender has its own method to decide whether it wants to lend to you. If you fit a lender's criteria, you might be accepted quickly. If you're far from ideal, your chances of rejection will 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, such as:

The size of the loan you want to take out. The amount you want to borrow will be considered in relation to your household income and how much you can afford.

How much you've saved as a deposit. The bigger your deposit, the less of a risk you'll likely be seen as.

Details of your incomings and outgoings. This is the money you've got coming in, such as your salary, and how you spend your money.

Your employment status. Permanent employees can find it easier to get a mortgage than temporary members of staff, the self-employed, freelancers, contractors and others with less common occupation types. If you'd struggle to get a mortgage because of your employment status, a mortgage broker can place you with a lender more likely to accept you.

Your credit rating and history. More on this below in point two.

Your existing debt. This could include credit card debt, loans you've got, overdraft availability used, buy now, pay later balances and so on. (Do note that mortgage lenders treat student loans differently from other debts – see more in our Student loans and mortgages guide.)

If you meet a lender's criteria, it means it's more likely to lend to you – but nothing is guaranteed.

Be mindful too that lenders can change their criteria, meaning getting a mortgage is tougher for some. So even if you've been accepted for a mortgage in the past, don't just assume you'll be successful again with that particular lender again.
Where does the lender's information about me come from?

The information comes from several different sources including your application form, any past accounts you've had with that lender and anything recorded on your credit file.

Your application form

This will have your personal details, plus information about your other credit commitments. It'll also have details about the property you want to buy.

Go through this with a fine toothcomb. If you're applying online, double check everything you've filled in. For those applying over the phone, ensure that the mortgage advisor hasn't taken down any information incorrectly. One slight slip, such as a "£3,500" salary rather than a "£35,000" one, can immediately kibosh any application and possibly future ones too.

Any past accounts you've had with that lender

If you're applying for a mortgage with a lender that you've had dealings with in the past, for example if you've had a credit card with that lender, it'll use this information to add to what it knows about you.

Your credit files

The three credit reference agencies – Experian, Equifax and TransUnion – compile information, allowing them to send data on any UK individual to prospective lenders. All lenders use at least one agency when assessing your file.

This data provided by the agencies includes court records, fraud data, and information about any credit cards, utility contracts (gas, electricity, water), mobile phone contracts, overdrafts, loans or bank accounts you've got.
Check your credit report before the mortgage lender does
You need to convince mortgage lenders that you've got the financial discipline required to pay back your mortgage. One way they investigate this is by searching your credit report(s) to find out if you've a good repayment history.

Your credit report lists details from any accounts you've had open over the past six years, including:

Credit cards

Loans

Overdrafts

Mortgages

Some utilities

Buy now, pay later payments

The three credit reference agencies in the UK are Experian, Equifax and TransUnion, with each producing a separate credit report on you. It's free for you to check these reports – our Check your credit report for free guide has more information on how it's done.

It is worth checking that each of them is up to scratch, as you don't know which one(s) your future mortgage lender will check.
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 certainly runs the risk of reducing them. To give yourself the best chance possible of acceptance, take the time before you apply for a mortgage to get your credit report into good shape.

For tips and help on how to bolster your credit report, see our Credit scores guide.
What's recorded on my credit report?

All lenders use at least one agency when assessing your file. Your credit report contains data from five main sources:

Electoral roll information. This is publicly available and contains address and residence details.

Court records. County court judgments (CCJs) and bankruptcies indicate if you have a history of debt problems.

Search, address and linked data. This includes records of other lenders that have searched your file when you've applied for credit, addresses you're linked to or other people you have a financial association with.

Fraud data. If you've committed a fraud (or someone has stolen your identity and committed fraud) this will be held on your file. More info below.

Account data. Banks, building societies, utility companies and other organisations keep details of all your payments and transactions on credit/store cards, loans, mortgages, bank accounts, energy and mobile phone contracts.

In addition, payday loan data is normally reported, and 'doorstep lenders' are legally obliged to share the data that they hold on you. If you use buy now, pay later, data from these providers is increasingly being shared with credit reference agencies too.

Credit reference agencies will usually know:

- How much you owe
- How long you've had the relationship for
- Details on your financial behaviour, such as late or missed payments
- The final outcome and date of any closed financial accounts
- Financial links with other people (such as a joint bank account or mortgage)
- Details of any hard credit checks (for example, because you've previously applied for credit)
- Any defaults or county court judgements in the last six years
- Whether you're bankrupt or in a formal debt relief plan

What's not recorded on my credit report?

There are many myths about what information is held on credit files. Don't be fooled, though. They hold an enormous amount of financial data, but there's lots they don't know about you.

The following things are NOT listed on your report:

Buying habits (in other words, what you tend to buy)

Race, religion, colour, medical history or criminal record

Information on relatives (unless you've a joint financial product with them)

Parking or driving fines

Salary

Council tax arrears

Savings accounts

Student loans (unless taken out pre-1998). See more in our Student loans and mortgages guide.

Old defaults or missed payments (from six+ years ago)

'I use gambling websites – will this show up on my credit report?'

Gambling activity is another thing that's not recorded on your credit report and so it shouldn't impact your credit history – at least not directly.

Yet when a lender is considering your mortgage application and scanning your bank statements (in other words, your incomings and outgoings), it'll be able to see any payments you make to gambling websites.

While online gambling does not automatically mean you won't qualify for a mortgage, lenders want to see you're in control of your money and not likely to miss a repayment. Lots of deposits or multiple gambling accounts could raise concerns about your ability to do this – especially if you're on the borderline of mortgage acceptance.

If you're somebody who uses gambling websites frequently, but your spending is affordable and under control, then it's best to speak with a mortgage broker who will be able to place you with a lender that's most likely to accept you.

If you don't feel your gambling is under control, and are concerned that this could affect your mortgage chances (and is impacting your life in other ways), it's best to seek specialist support from organisations such as GambleAware or GamCare.

MSE Forum: 'I'm a first-time buyer with a history of gambling.'
Correct credit report errors pronto
If information on your credit file 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.

Your first step should be to check if the error is on your credit file held with other agencies, then talking to the lender. If this doesn't work, the free Financial Ombudsman could step in and order corrections.

Here's our step-by-step help:
Check your file with other agencies. See if your file with them 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 – TransUnion, Equifax and Experian – have the right details.

Contact the lender. Most will have a system in place to deal with customer disputes, and if you've proof, it should be resolved quickly. Contact it, say you think the error is unfair and ask it to wipe it from your file.

If it's a default and you're prepared to settle with your lender, either in part or in full, you could also try negotiating with it. As part of negotiations, you could make a condition of settlement that the default is wiped off your credit file. Companies can do this for disputed defaults.

Speak with all three credit reference agencies. If the lender's not playing ball, contact the three credit reference agencies, and ask them to add a 'notice of correction' to your file.

This is where you get to explain the default. Make sure you're clear and concise, as this explanation will be recorded on your credit report. For example, "It was a joint account and the debt was run up once I had split from my ex-husband/wife."

This will slow future credit applications down, as most companies will look at it manually, but if the error is a substantial default, which is likely to stop you getting credit, that's usually not a problem.

If the lender won't help, complain to the Ombudsman. You have the right to go to the free, independent Financial Ombudsman Service if you believe the error is unfair and contacting the lender hasn't worked. It's the official body for settling disputes between individuals and financial companies, acting as an impartial adjudicator.

It can rule both that the debt is unfair (if it is) and that the default can be wiped.
Register to vote or your chances might be scuppered

This is a potential dealbreaker. While you can have a perfect credit report without being on the electoral roll, it's very difficult to get a mortgage without it. Lenders use electoral roll data in identity checks (to ensure you are who you say you are, and live where you say you live and that you're not laundering money).

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.

If you're not on it, you can register on the electoral roll for free.

Where you're not a UK, Irish or EU national (or a Commonwealth citizen with permission to stay in the UK) and thus can't get on the electoral roll to vote, then you can put a notice of correction on your file, saying you have other proofs of address and ID you can offer lenders (assuming that you do).
Delink from ex partners or flatmates to stop their credit history wrecking your chances

If you're financially linked to someone else (which only happens when you apply for joint credit, such as a joint bank account, mortgage or loan) but you're now separated or have nothing to do with them, then de-link yourself.

If not, any late payments or money mistakes they've made will reflect badly on you. Contact the credit agencies and ask for a notice of 'disassociation'.

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

Even if the person you're linked to has a good history now, you still risk problems in future if they miss payments. Our Credit scores guide has full details of what to do.
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 lenders may think you could rack up more debt by spending it all – and not getting too close to your limits, which makes it seem you're at the edge of your finances. Here's what credit agency Experian says:
If you have debts, lenders prefer that they make up less than half of your available credit. To be really safe, try to keep any debts equivalent to 25% of your available credit. So if you've a combined limit of £10,000, lenders rather you use less than £5,000 of it, but ideally sticking nearer to the £2,500 mark.

If you are using a decent proportion 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 – new lenders get twitchy that you could suddenly be far more indebted than you currently are.

Be mindful that some lenders might also include buy now, pay later debts and available credit into their equations, particularly if you are heavily indebted to multiple buy now, pay later providers.

Sadly this is an art, not a science, and all lenders' views of how much credit you 'should' have differ. Try to average around 25% of your available credit, but if you need to use more then definitely keep it below 50% in all cases. Of course, if you can pay off debt, you should do so.
Close old, inactive accounts – they can kill your application

If you're not using an account, it may be worth closing it. Leaving it open might be a fraud risk, and it could 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.

See the Should I cancel? section of our Credit scores guide for full information on why you should (and shouldn't) close old accounts. Remembered, if you are closing an account, just cutting up the card isn't good enough – you must tell the bank you want it closed.
Always pay ALL your bills on time

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

A missed-payment default can count against you for at least a year, and they'll stay on your file for six years in total. Miss just one mobile phone payment and it could be the difference between getting a mortgage and not.

What's more, 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 (think 'once bitten, twice shy'). 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.

Where possible, set up a direct debit to make sure all payments are made on time.
Don't apply for other credit shortly before a mortgage

Try to avoid applying for credit in the three months before getting a mortgage – it could hinder your score and lead to rejection. Some recommend at least a six-month gap, to be absolutely safe. The Credit scores guide has full info.

This is because lenders will search your credit file every time you apply for a loan, credit card, overdraft, and increasingly mobile phone or utility contracts too. This search, known as a 'hard' credit check', is registered on your file even if you don't take out the contract.

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

If you NEED to apply for credit, it's unlikely that one application will hurt all that much, provided it's affordable. BUT – if it's a payday loan, some lenders will decline you for a mortgage if you've had one in the past year.

To underscore the point, previous research has found that a fifth of wannabe first-time buyers who've had a mortgage application rejected were declined because of a payday loan. See our Payday loans guide for more info.
Boost how 'affordable' you look to lenders – cut back on spending before you make your move
Lenders will check how much you can afford, and these affordability checks are more complex than they used to be. As part of the assessment, they're likely to want to see your bank statements.

One of the reasons is that mortgage lenders are required to 'stress test' borrowers – which is essentially checking you'd still be able to afford your mortgage if interest rates increased. Indeed, stress testing is a key component of determining your perceived 'affordability' and whether a lender will accept you for a mortgage.

The lender will usually ask to see at least your latest three months' statements to check your income matches what's on your payslips, and look at your recent spending. Many lenders will also check you've not left anything out (such as school fees or ongoing credit repayments). If you have, a lender is likely to ask for an explanation – something that could slow the mortgage application process down.

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.

Affordability assessments mean it's worth tightening your belt in the months before you apply. Moving costs are high, so every penny you save means a bigger budget to meet unexpected costs – plus it can also boost how affordable lenders view you. See our How to budget guide for help and tips on sticking to a spending regime.
Will lenders consider how many subscription services I'm signed up to?

Netflix, Disney+, Spotify, there are many subscription and streaming services out there. Unsurprisingly, it's common for people to be signed up to multiple services at once.

This can all add up cost wise and mortgage lenders will certainly factor in how much you're spending on subscriptions each month when working out what it thinks you can afford. If you're spending a lot on these services it can easily have an impact on the amount a lender is willing to let you borrow.

Simply telling a lender you'll cancel a subscription won't necessarily be acceptable as lenders are aware that some services tie you into a contract and many are very easy to set up again. So if you're planning on cancelling subscriptions in a bid to prove your affordability, aim to do this at least a few months before you apply for a mortgage.

See our Direct debit audit guide for more information on how to flush out unwanted direct debits, standing orders and recurring payments (which could help improve how much a mortgage lender is willing to let you borrow).
Stay out of your overdraft

If you're constantly in your overdraft, this could be seen as living close to the edge of your finances, so avoid it if possible. In fact, some lenders may not tolerate you being in your overdraft at all in the last three months.

And if you've no choice but to be in your overdraft, should you really be getting a mortgage?

To get a cheaper overdraft (if you really need it) see our Best bank accounts guide, but always budget to clear the debt as soon as possible.
Be mindful of what appears about you online (on search engines, social media etc)

In an age where checks and verification by mortgage lenders are increasingly carried out online, it's best to be careful about what a search on the likes of Google, Facebook, LinkedIn and similar platforms throws up about you.

Beware of social media posts which portray you in a negative light. For example, boasts about tax evasion, criminal activity, political exposure and other forms of bad press – search results along these lines could give a lender the jitters.

Be mindful that for a mortgage lender it's not only about whether you could afford to repay the mortgage. They also want to ensure the people they lend to won't pose them a reputational risk. One mortgage broker told us it's common for red flags to be raised because of a quick Google search, so be careful.

If you run your own business, a lender is also likely to search online for confirmation your business is 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.

Typically you'll need to be signed up to these schemes for a few weeks at least for your rent payments to actually start appearing on your credit file, but the longer you stay signed up for, the bigger the impact paying your rent on time should have on your file.

Some users of these schemes have reported seeing significant improvements in their credit rating. It's hard though to say what the average improvement to a person's rating is, as much depends on your personal circumstances.

It's worth noting that the only way you'll potentially reap the benefits of this is if you always pay your rent on time. Miss a payment and it'll show up in your file and could be off-putting to lenders if/when you apply for a mortgage.

Read more about these schemes in our Credit scores guide.
Put £100 more than you have to on your deposit – it can ease acceptance and boost how much you're able to borrow
It's well known that mortgages typically get cheaper at 90%, 80%, 75% and 60% loan-to-value (or put another way, if you've got a 10%, 20%, 25% or 40% deposit). So obviously if you're nearing a border, it's worth seeing if you can push to it to reduce the interest rate you'll pay.

For example, you'd normally get a much better interest rate if you applied for an 80% mortgage (with a 20% deposit) than if you applied for an 81% mortgage (with a 19% deposit). For more info on why your loan-to-value band is important and how much you can save by putting down a bigger deposit, see our How much can I borrow? guide.

What's less known about though are two potential benefits if you push £100ish beyond that band (for example, just below a 90% or 80% mortgage). These are:

It can increase your chances of mortgage acceptance. This is because it no longer looks to mortgage underwriters like you're scraping to get to the mortgage band limit.

It can impact how big a mortgage your lender is willing to offer you. For example, 4.75x your income, rather than 4.5x.

Mortgage broker Ray Boulger of John Charcol tells us that in some cases, even a fiver more can make a difference. He says that putting a little extra down is more likely to have an effect with high loan-to-value mortgages (95%, 90%), or where you're applying to bigger lenders (as these typically process mortgage applications using computer algorithms), or where your credit report is touch and go.

As it can never harm, you may as well try.
Sort your paperwork to speed things up
Lenders need proof of your income before they can offer mortgages, so it makes sense to get your paperwork together in advance. Sending all the paperwork in one batch speeds up the process as it reduces the chances of your application being reviewed by more people.

If your lender won't accept PDFs, uploads or printed bank statements, you may need your bank(s) to send you original copies. Ask for these a few weeks in advance in case you need to wait for the originals to arrive.

Your lender may want to see any or all of:

Your last three months' bank statements

Your last three months' payslips

Proof of bonuses/commission

Your latest P60 tax form (showing income and tax paid from each tax year)

Your 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.
Get paid in cash and/or regularly make cash deposits?

Frequent cash deposits into your bank account can ring alarm bells for mortgage lenders – even if that's simply how you're paid your salary.

Lenders will want to ensure the origin of cash deposits are genuine, so if you regularly deposit cash then it's best to have an explanation at hand or even evidence (such as a letter from your employer confirming you're paid in cash). It'll be easier to allay a lender's fears if such deposits are normally for the same amount and paid on a fixed basis – plus lenders will want to see that tax has been paid on any cash income.

If this applies to you, it's sensible to speak with a mortgage broker as they'll be able to place you with a lender more willing to deal with income paid in cash.
Avoid delays – fill out the application form correctly

Here are our top five tips for filling in the paperwork or online application. Even if you end up getting a broker to help you, it’s normal for you to be asked to check it first so make sure you:

DO state your income exactly. Don’t round up.

DO give your FULL NAME – even middle names are necessary.

DO declare ALL your debts. The lender will find them anyway and withholding the info can mean a quick decline.

DO get your three-year address history exactly right, including postcodes.

DO give honest answers when asked about how much you spend.
Test drive your mortgage chances

Once you've done all 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.

It's a conditional offer saying you may be accepted, based on a quick check of your income and, probably, your credit file. However, it offers no guarantees and it's not compulsory. But for first-time buyers especially, it boosts estate agents' or sellers' confidence that you'll be able to complete the sale, so may up your chances of having an offer accepted. Some worried sellers might only accept viewings where you've had a mortgage AIP.

It's worth benchmarking a top deal with our Mortgage Best Buys tool, and 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, it doesn't mean you have to borrow from that lender if you spot a better deal further down the line.

Beware – too many of these checks in a short space of time could harm your credit rating if the lender does a credit check and marks it on your file. This could damage your mortgage application later on.

Some lenders offer a 'soft' search option, which won't be visible to other lenders (but will show up for you). Find out from the lender which it is before agreeing to one.
Rejected? Stop before you make another move
If you're rejected – FREEZE! Don't automatically apply again with a different lender. Too many applications will mess up your credit score, so don't do it. Instead, the first thing to do is to check your credit file again. Could you have 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 continues, until finally you check your files and get the error corrected. So...

You apply again

You're rejected because of recent 'searches'

If you're rejected once, immediately go to the top of this guide and follow the steps we've set out, or you may mess up your score as more applications mean more searches, which will compound the problem.

If you haven't missed anything and your credit file's still looking good, it could just be that the lender you applied to had its own reason for turning you down. It's worth asking the lender why.

It should indicate to you the main reason you were turned down – and will tell you if that was your credit file.
Ready to get a mortgage?

Mortgage Best Buys: Find your top mortgage deals.

Cheap mortgage finding: How to pick a broker.

First-time buyers' guide: Free PDF guide.

Remortgage guide: Free PDF guide.

Self-employed mortgages: How to get one.

Joint mortgages & separation: What happens if you and your partner split.