How to get a mortgage in 6 easy steps

From how to prepare for your mortgage application to how to boost your chances of it being accepted, we look at everything you need to know about how to get a mortgage.

Angela Kerr Director, Editor

Whether you’re a first time buyer or you’re buying a new home and it’s many years since you’ve applied for a mortgage, it’s a good idea to know exactly what’s involved in the process. So we look at how to get a mortgage, from what lenders will look for, to how to avoid delays and what to do to increase your chances of success.

1. Maximise your deposit

When thinking about how much deposit you need to buy a house, typically you need a minimum 5% deposit. But, the larger your deposit, the cheaper your mortgage rate will be. So it’s worth exploring what you can do to maximise your deposit in the run up to getting a mortgage. Perhaps you’re lucky enough to be in a position to ask family if they can help with a gifted deposit.

If you’re a first time buyer and aged 18-39, check out Lifetime ISAs. You can save up to £4,000 each tax year into your LISA and the government will give you a 25% bonus on your contributions, up to a maximum of £1,000 per year. Find out more in our guide on Best Lifetime ISAs

Alternatively there are schemes such as shared ownership that can help you buy with a smaller deposit and other private alternatives to the government’s Help to Buy scheme (which ended in March 2023). While guarantor mortgages let your loved ones put up a deposit to help you buy your first home without having to spend their savings.

Use our calculators to get an idea of how much you can afford to borrow

2. Boost your mortgage chances

There’s other preparation you should do before making your mortgage application. In the six months before applying for a mortgage, get yourself ‘mortgage ready’ by ticking off the following actions to boost your chances of getting a mortgage:

• Check your credit rating: If there are any mistakes in any of your credit reports, get them corrected. See if you can boost your credit rating by reading our guide 11 tips to improve your credit score for a mortgage.

• Register to vote: Make sure you’re on the electoral role as if you’re not, it may cause difficulty in getting a mortgage. Lenders use data from the electoral roll in identity checks, the make sure you are who you say you are and that you’re not laundering money. If you’re not registered to vote, do it ASAP. If you’re not eligible to vote, you can put a notice of correction on your file, stating that you have other proofs of address and ID you can provide.
• Pay all your bills on time: It may sound obvious but it’s crucial that you pay all your bills on time. The easiest way to do this is to set up payments by Direct Debit where possible. 
• Stay out of your overdraft: In the months before you apply for your mortgage, avoid going into your overdraft if you can. Some lenders may refuse a mortgage if you’ve been in your overdraft in the previous three months. 
• Don’t apply for credit before applying for a mortgage: Whenever you apply for any type of credit it’s marked on your credit file. And if you make multiple applications in a short period of time it can be a red flag to lenders. In the run up to applying for a mortgage, ideally try not to apply for any other type of credit. 
• Slash your spending: When you apply for a mortgage, the lender will usually ask to see your bank statements to check that your income matches your payslips and to go through your recent spending. So cut back on your spending so you can show you’re responsible with your cash. Another benefit of this is you should have some extra money for when you buy your house. 

3. Review your finances and speak to a mortgage broker

When you apply for a mortgage, lenders will assess your household income and consider your outgoings to assess how much you can afford. Lenders will take all your regular household bills and spending into account, along with any debts such as loans, to ensure you have enough left to cover your monthly mortgage repayments. When you apply for a mortgage, the lender will check your credit report with a credit reference agency to look at your financial history too. 

Mortgage calculators are a good place to start to see how much you can afford to borrow.  Our affordability calculator looks at how much you are likely to be able to borrow and afford based on your income.  Our mortgage cost calculator will also give you an idea of what your monthly mortgage costs are likely to be.

Use our mortgage calculators to see how much you can afford, how much the mortgage will cost you monthly and more.

Once you have a rough idea, you can go one step further and see what mortgage deals would be available to you now. You can do this online or over the phone with our free-free mortgage brokers partners at L&C.

Using a fee-free mortgage broker will mean they can do the hard work, searching over 90 lenders to find the right deal for you. An expert mortgage broker will also be able to match you to a lender that’s most likely to approve your application.

4. Dig out these essential documents

There are lots of documents you’ll need to provide in the mortgage application process so start gathering them up. These may include: 

• Proof of ID like a passport or driving licence 
• Your last three months’ payslips and most recent P60.
• Bank statements of your current account for the last three to six months
• Statement of two to three years’ accounts from an accountant if self-employed

You might also need to show your outgoings, including how much you’re borrowing on credit cards and other loans and general living costs such as travel, childcare and entertainment.

5. Apply for a mortgage in principle

Once you have shopped around for the best mortgage offer, see if you will qualify by getting a mortgage in principle, sometimes called an agreement in principle (AiP) or decision in principle (DiP). It’s a statement from a lender on how much they would lend you ‘in principle’ based on information you have provided about your income and outgoings. 

It’s advisable to get a mortgage in principle as early in the process as possible, ideally before you start house-hunting. You want to be seen as a serious buyer, ready to proceed, before you make your first offer.  

It usually takes about 15 minutes to complete one online. It isn’t a guarantee you’ll get a mortgage, but it will save time at your mortgage appointment if you decide to apply.

You can get a Mortgage in Principle in just a few minutes with our Mortgage Finder powered by the mortgage experts at L&C. This allows you to check your eligibility against a wide range of lenders’ criteria to see which deals you qualify for, how much you can borrow and what it will cost. You can then click ‘submit’ to receive an online Decision in Principle certificate, which will typically last up to 90 days.

Arrange a Mortgage Agreement in Principle today with our fee free mortgage partners at L&C

6. Find a property and apply for your mortgage

Once you have found a property and had an offer accepted, you can start the formal mortgage application process. Your mortgage broker can take this forward for you. The lender will carry out a full credit check, undertake a mortgage valuation of the property and once happy with your application will issue a formal mortgage offer.

Your solicitor will let your lender know once you have a date to complete your property purchase, so they can arrange to send them the money you’re borrowing.

How to get a mortgage video

See our video which explains how the mortgage process works in a few simple steps.

How to avoid delays in getting a mortgage

Make sure the mortgage process runs as smoothly as possibly by: 

• Being prompt: Make sure you respond to any enquiries during the mortgage application process swiftly to avoid any unnecessary delays. 
• Being accurate: Ensure you fill in the application form correctly including: 
• Giving your full name including middle names
• Declaring all your debts 
• Making sure your address history is correct including postcodes. 

How to get a mortgage as a first time buyer

Getting a mortgage as a first time buyer is much the same, except you’re more likely to have a smaller deposit – in turn, this means you’re more likely to need a mortgage with a higher LTV, which can be more expensive. You may want to weigh up what mortgage term to get — whether to get a 25 year mortgage or a 30 year mortgage term to help reduce monthly mortgage repayments by spreading the repayments over a longer period. Another issue is that as a first time buyer, this will be the first time you’ve been through the mortgage process. So it’s a good idea to get an expert mortgage broker to help you. Some of the jargon can seem confusing, but an expert will explain things to you in clear terms that you understand which will help you feel more in control. 

How to get a mortgage with bad credit

It is possible to get a mortgage with bad credit, but it will depend on the type of credit issues you’ve had and how recent any issues were. There are specialist lenders who may lend to you, but these usually charge higher rates.

However, depending on your circumstances it may be that mainstream lender will lend to you. If you want to apply for a mortgage with bad credit, it’s advisable to speak to a fee-free mortgage broker because they’ll be able to assess your situation and advise you on the best route forwards. Also, read our guide on Mortgages for bad credit.

How to get a mortgage with no deposit

You’ll usually need a deposit of at least 5% to get a mortgage so if your deposit is lower than this you won’t be able to get a traditional mortgage. 100% mortgages are beginning to reappear and if you have a track-record of paying rent, it may be an option to look at. You may also be able to get a mortgage with no deposit by taking out a Guarantor Mortgage, this is when someone, usually a parent, takes on some of the risk of the mortgage by acting as a guarantor. However, this isn’t something for the guarantor to jump into lightly as there are risks involved. Find out more in our guide Guarantor mortgages explained

How to get a mortgage if you’re self employed

It’s possible to get a mortgage if you’re self employed but the lending criteria can be stricter. You’ll need to have proof of your income; the standard requirement is a verified record of the past three years of earnings however some lenders may accept less so if you don’t have three years of records you can show, speak to a mortgage broker and they’ll be able to explain which lenders are most likely to accept your application. Find out more in our guide on Self employed mortgages.

How to get a mortgage on a low income

Your income is a crucial factor in whether your mortgage application will be accepted and if so, how much a lender will be prepared to lend to you. What’s right for you will depend on your circumstances: if your income is too low to get a mortgage on the property you want, can you buy a cheaper house? Or can you buy a property with someone else? Read our guide on Buying a home with a partner or friend: What to watch for.

And you may want to consider shared ownership, this is when you buy a share of a property (10%-75%) and pay rent on the rest. As you’re only buying a share of the property, you need a smaller mortgage. Find out more in our guide Shared ownership: What is it? Is it worth it?

What stops you getting a mortgage? 

There are lots of reasons that may stop you getting a mortgage including:

• Failing the lender’s affordability checks: Even if you have got a mortgage in principle it may be that your application is rejected, perhaps a deeper credit search reveals something concerning, or if you fail to meet the eligibility criteria set by the mortgage underwriters. The key is to find out what the problem is and not to just apply with a different lender, as making too many applications can damage your credit score. If your mortgage application is rejected it’s a good idea to speak to a mortgage broker, they’ll be able to look at your situation in greater detail and will be able to advise on the best way forward. Read more about what to do if your mortgage application is declined.
• The property is ‘down-valued’: When you apply for a mortgage, the lender will instruct a surveyor to conduct a mortgage valuation of the property to ensure it’s adequate security for the loan. A down valuation is when the surveyor values the property lower than the price the buyer has agreed to pay. In some instances the lender will offer to lend you a smaller amount but in other cases they may reject your application. Find out more in our guide on Down valuations: 6 things to do if it happens to you.

How to remortgage

If you remortgage with a different lender, the process is much the same as when you take out a new mortgage. You’ll need to make your full mortgage application, the lender will assess your affordability and a mortgage valuation will be carried out on the property and legal work will need to be undertaken.

However, if you remortgage with your existing lender, known as a product transfer, the process is much simpler and quicker. Although you might not get the best mortgage deal if you don’t check what else is available on the market. 

To talk through your options, get in touch with our fee-free mortgage brokers at L&C.

Frequently Asked Questions