How to get a mortgage

If you’re looking to buy a house and wondering how to get a mortgage, below is the information you need to know before starting your mortgage application.

In this article:

Save for a deposit

How much money do you need to start a mortgage? Generally, you need between 5% and 20% of the property’s price. The average home currently costs over £267,000 to buy, meaning you would need a deposit in the range of £13,350 to £53,400.

The more money you have for a deposit, the wider range of mortgages you’ll have access to. This could mean lower interest rates and cheaper repayments. Read our top tips to help you save for a deposit.

If you're a first-time buyer and you're struggling to save for a deposit, there are various first-time buyer schemes that can help you get onto the property ladder.

Work out how much you can borrow and check your credit score

How much you can borrow depends on the amount of deposit you’re able to provide, the repayments you can afford and your credit history.

Mortgage providers will look at how much you earn and your outgoings to make sure you can keep up with repayments.

Another way a bank checks whether you’re a suitable candidate for a mortgage is by checking your credit score. Before applying for your mortgage, it’s important you check your credit score details to make sure they’re accurate. You may need to request to see your credit report, however it won’t cost you anything and should only take a few minutes online.

Upon application, mortgage providers will ask for things such as bank statements and wage slips, so get these ready before you apply for a mortgage to save time.

Speak to a mortgage adviser

Mortgage advisers are extremely helpful when getting a mortgage, as they understand the market, know which products are available, and assess your financial situation to help you make informed decisions.

They'll explain the different types of mortgages such as fixed rate mortgages and variable mortgages.

You don't have to use a mortgage adviser when getting a mortgage, you can research yourself. If you do this, checking things such as the base rate, can be a good indication of which mortgage type is better in the current market.

Get an agreement in principle

A mortgage agreement in principle is an indication of how much you’ll be able to borrow. It’s usually arranged during the house viewing process and makes you a more attractive proposition to a seller, as it shows that you’ll be able to afford their property. To arrange, you’ll need to provide your financial information (bank statements and wage slips) to your potential lender or mortgage broker, and they will let you know how much you should be able to borrow.

Complete the mortgage application process

To complete your mortgage application, you’ll need the following:

Find out more about the mortgage process.

Is it possible to get a mortgage with no deposit?

In some cases it is possible, however the products available are quite rare and come with specific conditions:

Whether opting for a 100% mortgage or a guarantor mortgage, you should thoroughly examine the terms and conditions as both options can have long-term financial implications. Make sure to compare your options and consult with a financial advisor to ensure you choose a path that aligns with your financial situation and future goals.

What happens if you change jobs during a mortgage application?

Switching jobs during a mortgage application is generally not recommended. Lenders tend to prefer applicants with a stable and consistent employment history, as it gives them confidence in your ability to meet financial commitments. Changing jobs can raise concerns about income stability and may lead to your application being delayed or even denied. While it doesn't necessarily prevent you from getting a mortgage, it can make the process more complicated and time-consuming.

Can you get a mortgage if you're self employed?

Getting a mortgage when you're self-employed can be tricker as there is often stricter lending criteria. However, rest assured that with the right preparation, it is entirely possible. Usually lenders require you to provide verified record of your earnings for the past three years, rather than the last three months like a standard mortgage.

Speaking with a mortgage adviser can be helpful as they can guide you to lenders who are more accommodating to self-employed applicants and provide advice on the products available to you.

Can you get a mortgage with bad credit?

Finding a mortgage with bad credit is challenging, but definitely possible. Although your eligibility largely depends on the nature of your credit issues and the timing of those issues, there are specialist lenders that have products for individuals with poor credit histories. With these lenders, you should expect higher interest rates due to increased risk.

You should consult with a fee-free mortgage adviser who can assess your situation and direct you towards lenders likely to approve your application.

Is it possible to get a mortgage for an auction property?

Absolutely! Using a mortgage for an auction property can be a viable option, although it requires quick action and careful planning, especially if you're buying a house at a traditional auction, as you only have a 28 days to secure financing and complete your purchase. If you're buying through the modern method, the process offers more flexibility with time, allowing you additional breathing room to arrange your mortgage.

If you plan to use a mortgage to buy your auction property, you should have a contingency plan, so you don't get penalised. A bridging loan can be used as a short-term alternative to provide access to the funds before your mortgage is finalised.

It’s important to choose a mortgage deal you can afford, and make sure you understand any conditions and extra fees involved.

You can apply for a mortgage online or over the phone, depending on what works best for you.

Find out more about buying a house.