When it comes time to apply for a mortgage, you need to know that you are in a good position. Many people don’t realise that there are certain things that can stop you from getting a mortgage approved. There are tons of factors that are considered by a lender – some you may not have even considered.

To point you in the right direction, we have put together some of the things that can stop you from getting a mortgage below.

Affordability Checks

Did you know that there are certain affordability checks that are completed on your income? While it is obvious that a lender won’t want to offer you a higher mortgage than you can afford – it doesn’t hurt to understand the formula.

Some mortgage providers will calculate 4.5x your income and deem this as the maximum you can afford. If you’re looking for something higher than this, you won’t likely get what you hoped. If you’re lucky, a lender may stretch to 5x or 6x but this is only under the right circumstances.

Being Self Employed

The good news is that self-employed people can still be approved for a mortgage but it can be tricky. You might find that if you don’t have a list of your accounts from previous years, it will stop you from getting a mortgage.

Mortgage providers typically ask for around two to three years’ worth of accounts to back up your application. If you are newly self-employed, this might be difficult to do. Make sure you have proof of income if you want to secure a good mortgage.

A Limited Deposit

Often, not having a high enough deposit to back up your application can stop you from getting a mortgage. Lenders will typically ask for at least 10% but if you want a good interest rate, you might need quite a bit more.

It’s usually best to avoid applying for a mortgage until you have a reasonable deposit saved up. Otherwise, you might not get the approval that you had hoped for.

Bad Credit

When was the last time that you checked your credit score? It is possible that having bad credit can stop you from getting a mortgage. Lenders will check your credit score and assess any credit problems against your name.

If they think your credit issues are too much of a risk, they might not give you the approval that you had hoped for. The good news is that you can resolve bad credit issues and even get a mortgage that is designed for those with bad credit. Just make sure you don’t agree to anything that will have the opposite effect.

Need More Advice?

If you’re worried about something that might stop you from getting a mortgage, why not get some extra advice? Our team of experienced mortgage advisors can offer you unbiased advice to help you get the mortgage that you deserve.

Don’t hesitate to get in touch with our team today. We can set up an appointment as soon as possible!