A First-Time Buyer’s Guide to Preparing for a Mortgage Application

What Does it Mean to be Mortgage-Ready?

Being mortgage-ready means having your finances in good shape and understanding what lenders will be looking for when you apply for a mortgage. The best time to start preparing is about six months before you submit your application. This gives you plenty of time to get your paperwork in order, work on your credit score, and get your finances in check.

When applying for a mortgage, you’ll go through an affordability assessment. Lenders will evaluate your income, expenses, and debts to see if you can comfortably handle monthly mortgage payments. While first-time buyers often face more documentation requirements than those remortgaging, there are several actions you can take to strengthen your application.

Key Steps to Get Mortgage-Ready as a First-Time Buyer

1. Tackle Your DebtLenders will look at your existing debts and credit balances when you apply. If you have any outstanding loans or credit cards, it’s wise to start paying them off. The less debt you have, the better your chances of being approved. Avoid taking on any new loans or credit cards in the months leading up to your application, as this could negatively impact your mortgage approval.
2. Make Timely PaymentsYour payment history plays a big role in how lenders assess your financial responsibility. Ensure you’re paying all bills on time—whether it’s rent, utilities, council tax, or any subscriptions. Missing payments or making late payments can hurt your credit score and make it harder to get approved for a mortgage. A strong track record of timely payments shows lenders you’re reliable and capable of managing your finances.
3. Register on the Electoral RollBeing on the electoral roll at your current address can boost your credit score by confirming your identity and where you live. Lenders often use this information to verify your details during the application process, making it an easy and effective step to improve your creditworthiness.
4. Maintain Employment StabilityLenders prefer borrowers with a stable job and regular income. If you’re thinking about changing jobs, it might be a good idea to wait until after your mortgage is secured. If you’ve recently switched jobs, aim to stay in your current position for at least six months. During your application, you’ll likely need to show recent pay slips to prove your income and job stability.
5. Build a Savings HistoryA strong savings history is one of the most important factors for first-time buyers. Having a steady record of saving shows lenders you’re financially disciplined and capable of setting aside money for your deposit and other home-buying costs. Demonstrating that you’ve been consistently saving across multiple accounts can be an important factor in your approval process.
6. Understand Your Credit RatingYour credit score is crucial when applying for a mortgage. It’s one of the primary ways lenders assess how risky it might be to lend to you. While it’s possible to get a mortgage with a lower credit score, it may mean higher interest rates or more restrictive terms. To avoid any surprises, check your credit score before applying and take steps to improve it if needed, such as paying down debt or correcting any inaccuracies on your credit report.

Seek Expert Guidance

If you’re unsure about the steps to take to become mortgage-ready, consider speaking to a mortgage adviser. A mortgage adviser can offer tailored advice for first-time buyers, help you navigate the mortgage process, and answer any questions you have along the way. They’ll work with you to ensure you’re on the right track for a smooth and successful mortgage application.

As a first-time buyer, being mortgage-ready is one of the most important steps you can take in your home-buying journey. With the right preparation, you’ll improve your chances of securing a mortgage that fits your needs and financial situation. By managing debt, maintaining good payment habits, building savings, and understanding your credit score, you’ll be well on your way to getting your dream home.

Looking for some advice on how you can start the process to buying your first home? Contact our team today and book an appointment with one of our advisers, make sure you are in the best position to embark on this huge milestone.

While you wait for your appointment, why not download the ‘My MAB’ app? My MAB is a digital mortgage coach designed to help you save, plan, and track your home-buying journey. It can estimate how much you can borrow, help you create a savings plan, and provide access to a library of expert advice articles—giving you all the information you need to buy your first home.

**You may have to pay an early repayment charge to your existing lender if you remortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for arranging a mortgage. The actual amount you pay will depend on your circumstances. The fee is up to 1.5% but a typical fee is 0.3% of the amount borrowed.