How Easy is it Getting a Mortgage?

Buying a property is much easier when you know the right steps to take, especially if you’ve never had to go through the process before.

But just how easy is it really to get a mortgage in the UK, especially if you’re looking for a second mortgage or after a buy-to-let loan to get an income from renting?

In this article, we look at the different ways to help maximise your chances of getting the best mortgage deal possible, how to apply, and the easiest ways to get approved for one.

How easy is it to get approved for a mortgage?

This all depends on your personal and financial circumstances, including if you already have an existing mortgage. Factors such as deposit, credit history, debt and income all play a large role in you being approved for a mortgage.

If you optimise the following factors, you’ll be more likely to meet the lender’s eligibility criteria and pass the affordability test. And improve your chances of getting approved for a mortgage in principle.

Aim for a larger deposit

So, if you borrow £150,000 for a property worth £200,000, your LTV ratio would be 75% – a ratio many lenders favour.

If you have limited or no funds to work with, see our guides to low deposit mortgages and no deposit mortgages.

Pay off as much debt as you can

If you have any unsecured debts, you may want to consider paying them back before applying for a mortgage. Lenders will calculate your debt-to-income ratio to see if you can afford to pay back your mortgage each month while still living within your means, so clearing off some debts could make your application much easier.

To calculate your debt-to-income ratio, divide your total monthly debt payments by your gross monthly income (i.e. before tax and other deductions), then multiply this figure by 100. Use our debt-to-income calculator below to work out yours and find out whether lenders are likely to view you as low, medium or higher risk.

How to get a mortgage

Your first step should be to find the right mortgage broker as this will boost your chances of getting approved and landing the best rate. Make an enquiry with us and we will match you with your ideal advisor for free.

Your handpicked mortgage broker will guide you through the following steps to full application:

• Readying all of the correct paperwork
• Downloading your credit reports
• Finding the right lender and securing the best deal for you

Is it easy to get approved with bad credit?

While some factors on your credit report could have more impact on your mortgage application (for example bankruptcy and debt management schemes), there are other factors that won’t have much impact at all, like a missed phone payment or a hard credit search within the last 12 months.

To make sure you don’t miss anything, download your credit reports from the two main credit reporting agencies in the UK: Equifax and Experian. By getting these three reports, you’ll be able to see which factors appear across all of them and if there are any mistakes that you could amend. By doing this, you could make your mortgage application easier and save money on your future payments.

See our guide to bad credit mortgages for more information.

Is it easy to get a buy-to-let (BTL) mortgage?

Yes, in the right circumstances. Buy-to-let mortgages typically have higher interest rates compared to residential mortgages, and lenders also tend to require a higher deposit rate, though many will loan at 85% loan-to-value (at the time of writing). This is because BTL properties typically rely on rental income to sustain the mortgage repayments, so the risk is higher. The more deposit you can put down, the better deal you’ll likely get.

So, if you’re wondering how to make your BTL mortgage application as easy to get as possible, it’s worth speaking with a mortgage advisor. They’ll be able to review your circumstances and advise you on how to boost your chances of getting a great BTL deal. You can also make things easier for yourself and be prepared with your documents – read our comprehensive list to see what you’ll need to get together.

Is it easy to switch or refinance a mortgage?

Yes, it’s possible. In many cases, switching or refinancing your original mortgage to another could mean a better interest term and rate. For example, you may be coming to the end of a fixed-rate deal of two years and want to switch to a product with a lower standard variable rate (SVR).

Repayment mortgages tend to be more favoured by lenders, and you can choose the following:

• Fixed-rate: A fixed-rate mortgage is where you pay back both the interest and capital each month. With a fixed rate, your mortgage payments will stay the same for the agreed term, so you know exactly how much you’ll pay back each month.
• Tracker: A tracker mortgage rises or falls depending on the Bank of England’s base rate. This means that you’ll save money for some months and pay more with others.
• Discounted variable: This mortgage has an interest rate that is set below your lender’s standard variable rate. It goes up and down when the SVR changes as opposed to the Bank of England’s base rate.

To find out how easy it could be to switch mortgage lenders, make an enquiry and talk to one of the expert mortgage brokers we work with.

How easy is it to get a second mortgage?

Getting a second mortgage could be straightforward, as long as a lender is happy that you can afford to pay the loan each month and you have enough deposit. It can be

Lenders will typically require borrowers to meet tougher eligibility criteria and affordability checks, and they’ll need to know if the loan is for a residential home or a buy-to-let property.

If you have a separate residential mortgage and are looking to take out a second loan as an investment opportunity, lenders will also be more critical when assessing your application.

How easy is for first-time buyers?

It can be very easy for the right applicants, and many lenders welcome first-time applicants. In fact, first-time buyers now make up the majority of home purchases (at the time of writing) with terraced houses and semi-detached properties being their preferred choices.

If you’re a first-time buyer looking for an easier way to get a mortgage, you could consider the following:

• Joint owner, sole proprietor: This is where a second party helps the borrower to buy a property without featuring on the title deeds. It’s common for parents to do this for their children.
• Shared: A shared ownership mortgage is a hybrid between buying and renting. Basically you can borrow a percentage of a home and the bank owns the remainder, meaning that you’ll pay rent on this amount. You can buy back percentages until you fully own the home if you wish.

Speak to an expert to ease the mortgage process

To find out how easy it is for you to get a mortgage or start your application the right way, use our free broker-matching service to get matched with the right advisor for you.

Our service quickly assesses your needs and circumstances to pair you with the mortgage specialist who is best placed to help you achieve your goals. Call 0808 189 2301 or make an enquiry to get matched with your hand-picked and full-vetted mortgage broker today.