Everything you need to know about mortgages

There are a number of factors that can affect your ability to get a mortgage. All lenders will have their own eligibility criteria, meaning you may be rejected by some lenders but accepted by others. 

Typically, your eligibility for a mortgage will be based on the following factors:

• How much you want to borrow

• How much deposit you have 

• Your monthly income

• Your monthly outgoings

• Your employment status

• Your credit history

• The property you want to buy - some lenders won’t offer mortgages on listed buildings, high-rise flats or homes made from non-standard materials, for example.

To increase your chances of successfully getting a mortgage, it’s a good idea to use a mortgage broker. Our expert mortgage brokers compare thousands of deals from over one hundred different lenders and can help you pick the right mortgage deal for your circumstances.

Once you’ve found the right mortgage deal for you, it’s time to start the application process. When you apply for a mortgage, the lender will run a hard credit check to find out how you’ve managed credit in the past and double check there’s nothing in your credit report that would mean you’re not eligible. 

You’ll need to provide some documentation with your mortgage application. The exact documentation you’ll need will vary depending on the type of mortgage you’re applying for, your financial situation and your lender, but will typically include:

• Bank Statements (typically from the last three months) - Lenders will use these to look at your regular outgoings and whether you’re able to afford the monthly repayments. 

• Proof of Income - This will typically be payslips from the past three months. Lenders can also request to look at your bank statements to assess whether you have a regular income to cover your monthly payments. 

• Proof of ID - Such as your passport or driving licence.

• Proof of address - Such as a recent utility bill, council tax bill or bank statement. Any documents you supply for proof of address should be dated within the last three months. 

Proof of deposit - You’ll need to prove where your deposit came from. If you’ve saved your deposit and are currently holding it in a savings account, you’ll need to provide a bank statement for this savings account, you may be asked about any significant deposits into the account. If you’ve been gifted the deposit, you may need a signed letter from the person gifting you the deposit.

Buying a house and applying for a mortgage can often be a lengthy process, but the actual time it takes to apply for a mortgage will vary. 

How long your mortgage application takes will depend on a variety of factors, such as the complexity of your financial situation, the efficiency of the lender and also how quick you are at responding to any queries your lender or broker may have. 

When you apply for a mortgage through Better.co.uk, your case manager will be on hand to help you through the whole application process, chasing the lender when necessary and keeping you informed every step of the way.

Mortgage offers are only valid for a fixed timeframe. This will vary between lenders but mortgage offers typically last between three and six months. 

If completion on your new property is delayed, you may be able to ask your lender to extend your mortgage offer for a further three to six months, but you may need to reapply for the mortgage if your offer isn’t extended.

Typically mortgage terms are between 25-35 years, but there are some lenders on the market who offer mortgages over 40 years. The mortgage term you’re able to get is likely to depend on your age; for example, if you’re an older borrower, you may struggle to be approved for a lengthy mortgage term.

How do I get the best mortgage rates?

The interest rate you receive on your mortgage can be influenced by various factors. Following the steps below will help you to get the best mortgage rates for your circumstances: 

• Use a mortgage broker: Our expert mortgage brokers will be able to help find the right mortgage deal for you.

• Work on your credit score before you apply: Your credit score will impact the mortgages you’re eligible for, and like most borrowing products, the best rates are typically reserved for reliable borrowers with a good credit history. 

Having a reasonable deposit: The Loan-to-Value (LTV) of your mortgage, how much you borrow vs the value of your house, can have a significant impact on the mortgage rates you’re offered. Borrowers with larger deposits typically pose less risk to the lender because the property's value is significantly higher than their investment, and you’re less likely to fall into negative equity if house prices fall.

A mortgage deed is a legally binding contract between you and your lender, which is secured against your property. When you successfully apply for a mortgage, you’ll need to sign your mortgage deed. 

A mortgage deed outlines the conditions of your mortgage, the total amount you’ll need to repay and the terms of the mortgage loan. You’ll need to sign a new mortgage deed if you remortgage your property.

There are some circumstances where a mortgage offer can be withdrawn, typically when you have a change in circumstances, such as losing your job, the lender finds you’ve given inaccurate or false information on your application or if the surveys carried out find an issue with the property you wish to purchase.