Can I get a mortgage?

If you’re hoping to get onto the property ladder, your first priority will usually be to find out whether or not you’re eligible for a mortgage.

Lenders will look at a whole range of different factors when assessing mortgage applications, including your income, your outgoings and how you manage your money, both now and in the past.

Here, we look at some of the different circumstances you might find yourself in, and explain how likely you are to be accepted for a mortgage.

Can I get a mortgage with bad credit?

Unfortunately, if you’ve got a poor credit score because you’ve missed debt repayments in the past, lenders won’t be keen to offer you a mortgage. They will not want to be seen to be irresponsible by encouraging you to take on more debt when there’s uncertainty whether you will make your monthly payments on time.

If you’ve got a bad credit history, it’s therefore a good idea to look at ways you can improve your credit score. For example, you may want to consider a ‘credit builder’ credit card. The aim of this type of card is that you repay what you owe every month therefore demonstrating you can manage debts sensibly. Bear in mind that these cards often charge steep rates of interest and offer low credit limits, and even if you do manage to improve your credit score, there are still no guarantees you’ll be accepted for a mortgage.

Can I get a mortgage with a CCJ?

If you’ve had a County Court Judgement (CCJ) against you in the past, this will make it much harder for you to get a mortgage. Whether your mortgage application will be accepted will very much depend on the details of your CCJ, such as the amount it was for, the circumstances behind it, and how long ago the judgement was registered. For example, if the CCJ was only for a very small amount several years ago, and you’ve had no financial difficulties subsequently, some lenders may be prepared to offer you a mortgage. You’ll need to be able to prove you’re not likely to encounter any further problems in the future. If your CCJ was for a large sum and was made against you recently, however, high street lenders are unlikely to be willing to offer you a mortgage.

Can I get a mortgage with a default?

Most Lenders won’t usually be prepared to offer you a mortgage if you’ve defaulted on debt repayments in the past, as you’ll be considered too high risk, particularly if your default was recent. It will however depend on your individual circumstances. If you only defaulted once several years before submitting your mortgage application, and you can prove you’ve managed all your other debts responsibly, certain lenders may be prepared to offer you a mortgage.

Can I get a mortgage with debts?

Most of us owe money, whether its student loans, credit cards or a car finance deal. Having debts shouldn’t damage your chances of getting a mortgage, provided you can prove you can afford the monthly repayments and you haven’t missed any of them in the past. In fact, it can even work in your favour having debts if you’ve got evidence that you manage them responsibly as this will boost your credit score, making it more likely lenders will look favourably on your mortgage application.

Can I get a mortgage after an IVA?

An Individual Voluntary Agreement (IVA) is a legally binding arrangement between you and your creditors to pay back your debts over a set period of time. An IVA will remain on your credit file 6 years from the original registration date. The majority of lenders will consider your mortgage application once it has been satisfied for 6 years, a handful may consider your application sooner on a case by case basis. Call us with an up to date copy of your credit file and we will search the market for you.

Can I get a mortgage on my own?

You can get a mortgage on your own, as long as you have at least a 5% deposit to put down and can show that you can afford the monthly repayments. Many people prefer to buy alone because it makes life simpler when they want to sell up and move on. When working out how big a mortgage you can get, most lenders will usually allow you to borrow up to 4.5 times your income, although some lenders may offer lower income multiples than this.

Can I get a mortgage at 50?

Lenders may not be keen to offer you a mortgage if you’re aged 50 or 55 if you are going to retire during the mortgage term, as they’ll be concerned about you not having enough income to cover the monthly payments when you stop work. However, if you opt for a shorter mortgage term that finishes at the same time you stop work, you should be able to find lenders who’re prepared to offer you a mortgage. If you want a mortgage that extends into retirement, you’ll need to be able to show that your retirement income will be enough to cover your monthly payments.

Can I get a mortgage at 60?

Getting a mortgage at the age of 60 or 65 could prove tricky, as some lenders impose age restrictions that state you cannot be older than 65 or 70 by the time the mortgage term ends. You’ll therefore need to accept that lenders may only agree to offer you a mortgage if you choose a short term, say five to 10 years. If you’re planning to retire during the mortgage term, you’ll need to be able to prove that your retirement income can cover your monthly payments. Although it will be harder to get a mortgage when you are older, it’s not impossible, but it’s a good idea to seek professional advice so that you understand the options available to you.

Can I get a mortgage with no deposit?

Prior to the global financial crisis of 2008, several lenders offered 100% mortgages to homebuyers with no deposit to put down. However, since the crisis lenders have become much more cautious about who they lend to and how much, so this kind of deal is no longer available. You’ll need a deposit of at least 5% of the property value to put down if you want to get a mortgage, but the bigger the deposit you can save up, the wider the choice of mortgages you’ll have access to.

Can I get a mortgage without a job?

In order to get a mortgage, you’ll need a regular income so that you can prove to the lender that you’ll be able to make repayments each month. Getting a mortgage without a job is therefore unlikely, unless you can prove that you have one which will be starting soon.

Can a student get a mortgage?

Provided you have an income and can show lenders evidence that you are employed, then also being a student shouldn’t be a barrier to getting a mortgage, especially if your course is only part-time. However, if you’re a full-time student without a job, getting a mortgage is likely to be more challenging. Some lenders will consider student applicants as long as their parents are prepared to act as guarantors.

Can you get a mortgage after bankruptcy?

If you’ve been declared bankrupt, the bankruptcy order will be shown on your credit card for at least six years. You will be legally obliged to notify lenders that you are bankrupt if you’re applying for credit of more than £500. Lenders are often reluctant to offer mortgages to people who’ve been declared bankrupt, even if the information is no longer on your credit report, as they will often ask you whether you’ve ever been bankrupt during the mortgage application process. It isn’t impossible however, but will depend on your individual circumstances and how high risk lenders perceive you to be. If you are offered a mortgage, it may be at a higher rate than someone who hasn’t been declared bankrupt.

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