We understandably get asked a lot of questions by people seeking mortgage advice, and many of those questions centre around mortgage eligibility requirements and the mortgage approval process. We’ve answered some of the most common questions on these subjects below.
What is the best credit score for mortgage approval?
There is no single best credit score for mortgage approval. People manage to get approved for a mortgage with differing credit scores and you shouldn’t give up hope if your credit rating is unsatisfactory.
What credit score will get your mortgage application denied?
The mortgage underwriting process could result in an application denial if your credit score is considered too low, but the benchmark of what is required can differ between lenders. Moreover, your credit rating is just one factor that is considered within the application.
What are the requirements for self-employed borrowers for mortgage approval?
Mortgage eligibility requirements are similar for self-employed workers as PAYG workers. However, self-employed workers will need to provide different evidence as income, such as bank statements and self-assessment tax returns.
What factors do lenders consider when approving a mortgage?
Lenders consider a variety of factors within the mortgage approval process, such as your income, existing debts, type of employment contract and your credit history. These checks are for your safety as well as theirs.
What happens if my mortgage application is rejected?
If your mortgage application has been rejected, we can help you look for more suitable alternatives within an appropriate timeframe. We encourage mortgage pre-approval applications before entering the market. Contact us to learn more about the mortgage pre-approval process.
Can I get a mortgage as a self-employed individual or a contractor?
Yes, self-employed workers and contractors can get approved for a mortgage subject to lender mortgage eligibility criteria. The income requirements for mortgage approval can differ for these workers, but we can help to overcome the process.
Can I still get a mortgage if I have outstanding debts?
Yes, lenders consider your existing debts against your level of income to determine how much you can borrow through a mortgage. Having existing debts, such as credit cards and loans, doesn’t have to stop you from getting a mortgage approved.
What is a guarantor mortgage and how does it work?
A guarantor mortgage is when another person acts as the guarantor on the loan, meaning this person becomes responsible for making mortgage repayments if you don’t. The guarantor might even have to list their own home as collateral within the agreement.
What is a 'buy-to-let' mortgage and how does it work?
A buy-to-let mortgage, also called a BTL mortgage for short, is a mortgage used to purchase investment property rather than property to live in yourself. A BTL mortgage usually has stricter mortgage approval criteria, such as requiring a bigger deposit.
How can I prepare for a mortgage application to increase my chances of approval?
The best preparations for a mortgage application can differ between people and situations. Some people may benefit from reducing their debt, while others may not. It’s best to discuss this in an individual consultation with a reputable mortgage adviser.
Can I get a mortgage if my income is low but I have a substantial down payment?
Lenders will assess your income to ensure you can afford projected mortgage repayments. You may still be able to get approved for a mortgage with a low income, especially if you wish to borrow less due to a larger downpayment.
What is the typical timeline for the mortgage approval process in the UK?
The mortgage approval timeline in the UK ranges from two to six weeks, depending on the complexity of your application and if there are any further information requests. Our team work hard to ensure an efficient outcome.
Does my age affect my mortgage eligibility and approval in the UK?
Potentially – lenders set lower and upper age limits on their products to mitigate any risks. However, our team can help younger and older mortgage applicants evaluate their options.
For a more personalised discussion on how to qualify for a mortgage, why not book your own consultation with our advisers? We can provide the latest information with no obligation to proceed. Get in touch now.
