What do I need to do to do before I apply for a mortgage?

With the tougher mortgage rules in place since 2014 getting a mortgage perhaps seems to be a more complex process than ever.

Lenders are focused on establishing that a mortgage will be affordable for the borrower, not only now but also in the future.  As a result they will ask questions not only about your level of income but also about your outgoings.

That will include expenditure on other credit commitments like loans and credit cards but will also look at other items like regular travel costs, utilities and childcare.  This helps the lender calculate how much you can borrow so it makes sense to sit down and map out your monthly budget.

This will mean that you have all the figures to hand and help you to gauge the amount you might be able to borrow more accurately. It might also help you see where you might be able to make savings.

You will also need to be able to prove your income to the lender, so be prepared to come up with plenty of paperwork to back up your application.  They might typically require payslips, accounts for the self employed, P60 plus bank statements, proof of address and ID as well.  It’s not possible to predict everything a lender may request but gathering together what you can in preparation could help the process run more smoothly and quickly.

If you have any concerns about your credit history, either because of a possible blip in the past or because you have been previously declined, then you can get a copy of your credit record.  This could help identify any issues and if there are errors then you can get those rectified before you make an application.

It’s important to remember that just because you can’t meet one lender’s criteria that another will not be able to help.  Shopping around can help match your circumstances to the right lender as well as help identify better rates.