Understanding how mortgage lenders make their decisions is one of the most useful things you can do before applying. It removes the mystery and significantly improves your chances of approval.
See what you could borrow
Use our affordability calculator to estimate your maximum borrowing.
Try the calculator →Income verification
Lenders verify income through payslips, P60s, and bank statements. Most require 3–6 months of payslips for employed applicants. Self-employed borrowers typically need 2–3 years of accounts or tax returns.
Expenditure assessment
Since the Mortgage Market Review, lenders assess your outgoings in detail — bills, childcare, subscriptions, debt repayments, entertainment and dining. They may review 3–6 months of bank statements.
Stress testing
Lenders check if you could still afford the mortgage if rates rose by around 3%. This is why the amount offered is sometimes lower than pure income multiples suggest.
Credit history and LTV
A hard credit check covers payment history, CCJs, bankruptcies, and recent credit applications. The lower your LTV (the more deposit you have), the more generous lenders can be with rates and criteria.