How to choose a suitable mortgage

The process from shortlisting to application

Moving from researching mortgages to submitting an application usually involves several stages. For many buyers, this process includes:

1. Estimating affordability: lenders typically assess how much can be borrowed, alongside likely monthly repayments.
2. Providing details of outgoings: a full picture of spending is usually required, including household bills, subscriptions, credit commitments and general living costs.
3. Shortlisting a mortgage type: options such as fixed‑rate, tracker or variable mortgages are often compared, with consideration given to product length, flexibility and early repayment terms.
4. Reviewing credit files: credit reports are commonly checked for accuracy, with any errors addressed ahead of an application. A strong credit profile can support access to a wider range of mortgage products and more competitive rates.
5. Limiting new borrowing: taking on additional credit during this stage can affect affordability assessments.
6. Comparing rates and fees: mortgage products are often reviewed beyond the headline rate, taking into account arrangement fees, valuation costs and potential early repayment charges.
7. Obtaining a Decision in Principle (DIP): a DIP indicates what a lender may be willing to offer and is often used when making an offer on a property.
8. Submitting the full application: once a lender and product are selected, supporting documents are provided and the formal application is completed.

What lenders look at

When you apply for a mortgage, lenders usually assess whether you can comfortably afford repayments now and if interest rates rise in the future. Checks may include:

• Your income: lenders review your salary, bonuses, benefits or any potential income to understand how stable and reliable your earnings are.

• Your regular outgoings: this includes household bills, childcare costs, subscriptions, mobile contracts and credit commitments.

• Your ability to repay if rates increase: lenders ‘stress test’ your application to see if you could still afford your mortgage if interest rates were to rise, or if your circumstances changed.

• Your deposit size: A larger deposit can unlock lower interest rates and a wider choice of mortgage products.

• Your credit score and history: Good credit can show you manage borrowing responsibly. Missed payments or high credit utilisation may limit your options or result in higher interest rates.

Mortgage types at a glance

Here’s a quick comparison of the main mortgage types to help you understand how they differ.

Improve your chances of approval

When assessing an application, lenders generally look for evidence of reliable money management and affordable repayments. Certain factors are commonly reviewed and can influence how an application is viewed, including:

• Credit history: credit reports are often checked for accuracy, with errors addressed ahead of an application.

• Electoral roll status: being registered to vote can help lenders confirm identity and address details.

• Deposit size: a larger deposit can affect affordability calculations and may provide access to a wider range of mortgage rates.

• Debt levels: existing borrowing is taken into account, with lower debt‑to‑income ratios typically viewed more favourably.

• Employment stability: consistent income over time is usually preferred, particularly close to the point of application.

Don’t forget fees and small print

It might be easy to focus on the lowest interest rate, but the lowest rate isn’t always the best deal overall. Arrangement fees, valuation costs, product fees and early repayment charges can all affect what you pay across the full term of your mortgage. Checking the small print can help you work out the expected total cost, not just the headline rate. For more information about mortgages, you can visit our mortgage support hub.

Schemes and support that could help

There are a number of schemes and offers that may be available to help make buying a first home more affordable or accessible for some buyers. These can vary depending on the developer, lender and individual circumstances, and are typically subject to terms, conditions and eligibility criteria. Examples of support you may come across include:

• Mortgage rate support schemes: Some offers involve a developer contribution that is used to support a lower initial mortgage rate or reduced payments for a set period, subject to lender participation.

• Low‑deposit schemes: Certain schemes are designed to help eligible buyers purchase a new‑build home with a smaller deposit, often around 5%, through participating lenders.

• Family deposit support: In some cases, buyers may be able to use financial support from a family member towards their deposit, sometimes alongside an additional developer contribution, within set limits.

• Key worker support: Eligible key workers may have access to deposit contributions or other incentives linked to the purchase price, depending on the scheme and location.

Availability, criteria and incentives can change, so it’s worth checking the details of any scheme carefully before proceeding.

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