Thinking about buying a house in the UK but not sure what banks want? You’re not alone. Lenders have a checklist, and if you understand it, you’ll save time and avoid nasty surprises.
Credit score. Most lenders require a score of at least 620 for a standard mortgage. Anything higher—say 700—gets you better rates and more options.
Income proof. Your salary, self‑employment earnings or pension must be documented. Lenders typically want to see at least six months of payslips or tax returns.
Employment history. A stable job for the past two years signals reliability. Switching jobs frequently can raise red flags, even if you earn more now.
Debt‑to‑income (DTI) ratio. This is the amount you owe each month divided by your gross income. Most banks cap it at 45 %—the lower, the better.
Deposit size. The bigger the down payment, the lower the loan‑to‑value (LTV) ratio. A 20 % deposit is ideal, but 5 % is often accepted with higher interest.
Proof of identity and residency. A passport, driving licence and recent utility bill usually do the trick. Non‑UK residents may need extra documentation.
Property valuation. The bank will send a surveyor to check the house’s market value. If the property is worth less than the loan amount, you’ll need a bigger deposit.
Start by checking your credit score on a free service. If it’s below 620, pay down any credit‑card balances and correct errors on your report.
Gather your payslips, tax returns and bank statements. Organise them in a folder so you can upload them quickly when the lender asks.
If you’re self‑employed, consider a month‑by‑month cash‑flow statement. It helps the bank see that your income is steady, even if it fluctuates.
Calculate your DTI ratio now: add up rent, car payments, credit‑card minimums and any other debts, then divide by your monthly gross income. If you’re over 45 %, look for ways to reduce debt—maybe pay off a small personal loan before applying.
Boost your deposit savings by setting up an automatic transfer to a high‑interest account. Even a few hundred pounds each month adds up fast.
When you find a property, get a rough valuation from an online tool. If the estimate is lower than the asking price, be prepared to negotiate or increase your deposit.
Finally, talk to a mortgage broker. They can match you with lenders who specialise in your situation—first‑time buyer, self‑employed, or low‑deposit loans.
Getting a mortgage is a step‑by‑step process, but once you line up the basics—good credit, solid income proof, a decent deposit and a low DTI—you’re in a strong position. Follow these tips, stay organised, and you’ll move from dreaming about a house to holding the keys much sooner than you think.
30 Apr
Curious what credit score you need to buy a $300,000 house? This article breaks down the numbers and shows how your score impacts your mortgage. You'll get real examples, insider tips, and avoid common mistakes first-time buyers make. Find out how much you really need—and what to do if your score isn't quite there. It's a straight-shooting guide to getting a mortgage that actually fits your life.
Read More