What do you need for a successful mortgage application?

ESPC Mortgages’ Shirley Mushet shares her expert advice on the prep you need to do, to have the best chance of a successful mortgage application.

Residential mortgages are regulated to protect both you and the lender, to ensure that you’re being offered a mortgage responsibly. However, some applicants can find that the application is a frustrating part of the process.

Get your paperwork in order

Lenders need to know who you are, therefore being able to identify you is very important. They need to ensure it isn’t a fraudulent application – so there’s quite a bit of paperwork involved, and evidence required.

To make the process easier, you should do some ‘life admin’ prior to making a mortgage application. Make sure your passport is in date, and update your driving licence, wage slips, bank statements and credit agreements (i.e. credit cards, loans or car finance) with the correct name and address. Making sure you’re on the electoral roll also helps. They sound like simple things, but you’d be surprised how many people don’t keep these key details up to date!

The credit report

Lenders want to know that you can manage your finances before they’ll lend. Credit agencies give them the equivalent of your financial CV – the credit report! You should be aware that your credit score doesn’t reflect what a lender will consider.

Some things to consider:

• Check your credit report, and flag any errors with the provider immediately
• Keep payments up to date
• No credit isn’t necessarily good credit – lenders want to know that you can manage credit. It's a good idea to get a credit card and put a small amount onto it, then pay this off every month.
• Don’t have too much available credit (i.e. big credit limits), as this can cause a lender concern.
• Keep out of your overdraft, as some lenders view this as a lack of financial resilience, and a risk to their loan.
  
  

All lenders differ in their requirements, and it’s worth speaking to an ESPC Mortgages consultant to help you on your journey and to obtain financial advice specific to your circumstances.

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT. 

The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK. 

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk. 

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.