What Is Required for a Successful Mortgage Application?

22 February 2022

Shirley Mushet has shared her expert advice on the preparation you need to undergo to have the best chance of a successful mortgage application.

Residential mortgages are required to protect both you and the lender, they ensure you are being offered a mortgage responsibly. However, like most things, mortgage applications can be frustrating for some applicants.

Get your paperwork sorted

Being able to identify who you are is extremely important to lenders as they need to know who they are lending to and that the application isn’t fraudulent. This means there is a lot of paperwork required to use as evidence.

Doing some ‘life admin’ prior to making a mortgage application can make the process easier. Make sure your passport is in date and update your driving license, wage slips, bank statements and credit agreements (i.e. credit cards, car loans or finance) with your correct name and address. Making sure you’re on the electoral roll also helps. These may sound like simple things, but it isn’t uncommon how many people forget these key details.

The credit report

Lenders want to know if you can manage your finances before they lend. Credit agencies give them the equivalent of your financial CV – the credit report! Please be aware that your credit score does not reflect what a lender will consider.

Things to consider:

• Check your credit report, and flag any errors with providers immediately
• Keep your payments up to date
• No credit doesn’t necessarily mean good credit – lenders want to know 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 – for example, big credit limits, as this can be a cause for concern for lenders
• Keep out of your overdraft, some lenders view this as a lack of financial resilience and a risk to their loan

All lenders differ in their requirements, it is always worth speaking to a mortgage adviser or consultant to help you and your circumstances.