Mortgage affordability can change. Your income, bills, debts and deposit all affect the result.
Some steps take time, while others are quicker. You might check your credit reports, cut unused costs or pay down a debt. No change can promise approval, though. Every lender has its own rules.
This guide explains how to improve mortgage affordability before you apply.
Ways to improve mortgage affordability
SPENDING
Cut unnecessary spending
Review where your money goes and cut unused subscriptions or other spending before you apply.
DEBT
Pay down existing debts
Reducing loans, credit cards or other repayments can leave more of your income available for a mortgage.
CREDIT HISTORY
Strengthen your credit history
Check your credit reports for errors, pay bills on time and avoid unnecessary new credit applications.
DEPOSIT
Build a larger deposit
A larger deposit can reduce your loan-to-value and may give you access to a wider range of mortgage deals.
How much could you borrow?
Use our affordability calculator for a quick estimate.
Know what lenders assess
A mortgage affordability assessment looks at money coming in and going out.
Income and regular outgoings
Lenders look at your pay, other income, bills, debts and household costs.
Disposable income
Lenders consider what is left after your regular commitments and whether that can comfortably support the planned mortgage payment.
Higher-rate affordability
Your budget may be tested against higher mortgage rates to check whether repayments would still remain manageable.
Age, deposit and mortgage term
These factors can affect how much you may be able to borrow and which lenders or mortgage options may be suitable.
Mortgage eligibility varies between lenders, so two lenders may offer different borrowing amounts for the same application.
Find out what limits your borrowing first, then focus on the changes most likely to help.
Include all your income
Your salary may not be the only income a lender can use. Some accept overtime, bonuses, commission, pensions or certain benefits. Rules for extra income vary.
Keep proof such as payslips, accounts, tax records or award letters. A steady record may help with income that changes.
A recent pay rise may help, but the lender decides how to count it. Joint applicants may use both incomes. The lender will also check both people’s debts and costs.
Reduce debts and regular costs
Debt payments leave less money for a mortgage. Where possible, reduce debt before applying. Start with debts that take a large sum from your budget each month.
Paying down a credit card may reduce your credit utilisation. Using most of your limit can make your budget look stretched. Keep paying on time. Try not to take out more credit before you apply.
Before using savings to clear debt, compare both options. A smaller deposit may raise your loan-to-value and reduce your choice of deals.
Regular spending matters too. Cancel costs you no longer need, but keep the plan realistic. These changes may increase mortgage affordability and leave room for higher bills.
Improve your credit profile
Check your credit reports several months before you apply. Make sure your address, balances and payment history are correct. Ask the company to fix any errors.
If you can, register to vote at your current address. This helps confirm who you are. Keep paying bills on time. Avoid new credit unless needed.
Lenders do not use one shared credit score. They check your full credit history and budget. A well-run account may strengthen your mortgage application. But it cannot replace the lender’s affordability checks.
Review your deposit and mortgage term
Your deposit
A larger deposit means you need to borrow less and can reduce your loan-to-value (LTV). This may give you access to a wider range of mortgage options and could improve the rates available to you.
Your mortgage term
A longer mortgage term can reduce your monthly repayments, but you will usually pay more interest overall. Lenders may also consider your age and whether the mortgage term extends into retirement.
Worth knowing
A lower monthly payment does not necessarily mean a cheaper mortgage overall.
Compare your monthly mortgage repayments →
Prepare before you apply
There is no sure formula for how to get approved for a mortgage, but checking the following can help.
01
Prepare your documents
Gather proof of income, bank statements, details of regular costs and debts, plus evidence of your deposit.
02
Check everything is accurate
Make sure the figures on your documents match your application. Missing or incorrect information can cause delays.
03
Keep your finances steady
Avoid taking on new borrowing or making large purchases shortly before applying, as these may affect affordability checks.
04
Check your options before applying
An Agreement in Principle can give you an early borrowing estimate, while a mortgage broker can help identify suitable lenders before you apply.
How Muttuo Mortgages can help
Mortgage affordability varies between lenders. We can help you understand how much you may be able to borrow.
Review your income and monthly commitments
Compare criteria from more than 100 lenders
Understand your realistic borrowing range
Talk through your options
Understand how lenders may assess your finances and explore your mortgage options.
Your home may be repossessed if you do not keep up repayments on your mortgage.
