If you are looking to buy a house or another kind of property, then you may need to take out a mortgage, which is a type of loan.

You can choose many types of mortgage depending on your situation, whether you are a first-time buyer, or are looking to remortgage on your current property.

Can I apply for a mortgage?

Anyone can apply for a mortgage, however there are many factors that affect whether your application will be accepted. Keeping track of your credit score is the most important first step to applying for a mortgage, as if you have a low credit score it may be worth working to improve it before applying for a mortgage, to avoid rejection. On top of a good credit score, a mortgage lender may look for the following evidence before they approve an application:

  • Few, or no debts
  • Evidence of a steady income
  • Longevity in your current job – usually longer than 3/6 months
  • The amount of deposit you can put down – a larger deposit can go in your favour

What’s the catch?

A mortgage is one of the most expensive financial commitments we can make, and therefore requires a lot of consideration and, ultimately, commitment. You can apply for fixed rate mortgages, allowing you to pay the same every month for a period of time specific to each loan, but these loans charge a penalty if you abandon the deal before the end of the specified term. Similarly, some lenders charge a setup fee which can be as expensive as a few thousand pounds. To make sure you do not spend more money than you can afford, take a look at our comparison chart so that you can choose which deal suits your needs.

How can I apply?

Banks and other lenders provide mortgages, and can be applied for in branch, or online. Before applying, take note of your credit score and start collecting the various documents you will need to evidence your financial situation, e.g. bills, P60, previous 3 months’ wage slips, ID, etc.; a lender will make you aware of what documents are needed and will guide you through the application process. Most banks will also offer you a mortgage consultant to help you with the application.