How to Improve Your Mortgage Affordability
Lenders assess affordability carefully before offering a mortgage. Understanding what they look for — and taking steps to improve your position — can make a significant difference to how much you can borrow and the interest rate you are offered.
Check and Improve Your Credit Score
Your credit score is one of the first things a lender checks. Register on the electoral roll, pay all bills on time, reduce credit card balances to below 30% of your limit, and avoid applying for new credit in the six months before a mortgage application. Check your report with Experian, Equifax, and TransUnion for any errors.
Reduce Outstanding Debt
Lenders look at your total monthly debt commitments when calculating affordability. Paying down personal loans, car finance, and credit card balances before applying can meaningfully increase the mortgage amount available to you.
Save a Larger Deposit
A bigger deposit reduces the lender's risk and unlocks better interest rates. Moving from a 10% to a 15% deposit, for example, can open up significantly cheaper deals. Even a small increase in deposit can make a noticeable difference to your monthly payment.
Avoid Large Purchases Before Applying
Taking out a new car on finance or making a large purchase on credit in the months before your application can reduce your affordability. If possible, hold off on major financial commitments until after your mortgage has completed.
Speak to a Broker Early
A mortgage broker can review your finances and give you a realistic picture of what is achievable before you start house hunting. They can also advise on which lenders are most likely to accept your application given your circumstances, avoiding unnecessary credit searches.
Want to know what you could borrow? Get in touch for a free affordability assessment with no impact on your credit score.