What Can I Do If I’m Struggling to Get a Mortgage?


If you are looking to get onto the property ladder, but are so far struggling to secure a mortgage, it can be very frustrating. However, to help you, in the following article we are going to look at some of the reasons why you may struggle to secure that much-needed mortgage and things you can do to improve your chances.

You are Self-Employed

Self employed people often find it hard to secure mortgages. You need to make sure you have proof of your income. This doesn’t just mean showing them a list of invoices. You need to show your full business accounts and have them assessed, checked and signed off by a professional chartered accountant, along with the details of the last couple of years’ worth of tax returns. You may also need to provide lenders with the projections you have for the business in the future.

You Don’t Have a Big Enough Deposit

It’s generally considered a rule of thumb that you need a deposit amounting to around 5% of the new property price to qualify for a mortgage. The bigger the deposit you have, the better chances you have of getting a mortgage and for a lower rate of interest. 

Ideally you should start saving as early as possible. However, what if you can only afford a small deposit, one that is lower than what is generally required? There are still options. As you can look for a mortgage that offers help with your deposit or one that requires a deposit that’s much lower than the average. 

You Have a Lower Income 

This is probably the most common reasons why people struggle to get a mortgage. Lenders need to assess how affordable your mortgage payments are going to be before they give you the mortgage. They are concerned with whether you will be able to keep up with the regular payments too. Therefore, if your income is smaller, it can be hard to secure a mortgage. 

They will look at your whole budget and the mortgage you need as they want to determine whether you can comfortably pay everything including:

  • Your regular bills
  • Costs of living
  • Along with their mortgage repayments

They are also going to be interested in determining whether you’d be able to keep up with the mortgage repayments, even if your circumstances change or there was a major increase in interest rates. 

However, that doesn’t mean you can attempt to get a mortgage, even with an extremely low income, as there are many different schemes out there that will help. The Right to Buy, Shared Ownership and Help to Buy schemes are all worth considering.

You Have a Poor Credit Score

Your credit score is a detailed accounting of your finances in the past and present. It includes everything from credit card payments, utilities, bank accounts to any missed payments. Although your credit score is mostly determined by the above, other important factors can affect the score. You can still get a mortgage with a poor credit score, however, lenders will assess your credit score and history to figure out if you are too much of a risk or whether you should have your mortgage application approved.

There are many things you can do, if you have a low credit score. You should first look at your report and see if there are any inaccuracies, out of date pieces of information or anything. Then look to ways to improve it.

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