How to boost your chances of mortgage approval
We’ve pulled together five top tips to help boost the chance of getting your mortgage application approved. These tips also apply to you if you’re thinking of remortgaging in the not-too-distant future.
Don’t miss any bills 💸
Your regular bills, including utilities or your phone bill, count towards your credit score. Make them all on time, and it will boost you up. But, miss them and your score will fall. All missed payments, no matter how small, will be marked up against you on your credit file.
That’s why it’s really important to keep track of, and make payments on time for, each of your regular bills and outgoings. This is part of good financial planning and wellbeing, which should be one of your top priorities already if you’re applying for a mortgage. As part of this, you should also make sure that your bank statements and payslips are registered to your current address, as mismatched information can result in your mortgage application being declined.
Check your credit report 💳
When you apply for a mortgage, you need to effectively convince a lender that your financial health is in check and you have the discipline and means to pay back the money they lend you for your mortgage.
Checking your credit report – especially before you apply for a mortgage – will give you a good sense of your current standing which gives a sense of your attractiveness to lenders. Things like your credit cards, loans, and overdrafts from the last six years will all be included in your credit report.
Stay out of your overdraft 🥅
If you’re dipping into your overdraft frequently in the lead up to applying to a mortgage, it might play against you. Lenders want to know that you’ve got safety nets in place – so that if things happen in your life, you’ll still have the means to pay back the money they’ve loaned you.
An overdraft isn’t what normally classes as a ‘safety net’ – it’s more of a last resort, and it’s essentially a form of debt that you’ll need to pay off. Some lenders won’t accept your application if you’ve been in your overdraft in the three months leading up to your application.
Don’t take out new credit 📋
Taking out new credit before a mortgage application can put lenders on edge. You’re applying for a mortgage – which is one of the biggest financial commitments you’ll make in your life. Even something that seems simple, like using buy-now-pay-later on a purchase in the three months before applying for a mortgage might play against you.
A lender might consider you taking out new credit before a mortgage application as a sign that you aren’t in the best position to pay back their loan, which might play against you. So it’s a good idea to get your finances in a stronger place before applying for a mortgage if you’re thinking about whether you need to take out new credit for something right now.
Register to vote 🗳️
It’s really difficult to get a mortgage without being on the electoral roll. That’s because lenders use it to check your identity – they need to confirm that you are who you say you are, and they also use it in regulatory things like money laundering checks.
It’s free to register to vote, and if you’re thinking of applying for a mortgage, you should look into whether you’re registered, and if you are registered already, to make sure your details are up to date.
What next? 🤔
We’ve got a load of other helpful content to help you on your home-buying journey – whether you’re a first-time buyer or thinking of remortgaging. Here’s a taster of what else we can help with.
- How to make a winning offer
- Should I buy my first home in the current market?
- Is now a good time to remortgage?
Your home may be repossessed if you do not keep up repayments on your mortgage.