Mortgage Requirements: Your Quick‑Start Checklist

Thinking about a mortgage can feel overwhelming, but breaking it down into bite‑size steps makes it doable. Below is a plain‑spoken guide to the most common requirements lenders look for. Follow this checklist and you’ll know exactly what to prep before you even pick up the phone.

1. Down Payment – How Much Do You Really Need?

Most lenders expect a down payment of 5‑20 % of the home price. If you’re buying a £200,000 house, that’s £10,000 to £40,000. Some government schemes let first‑time buyers put down as little as 5 % or even zero, but they usually come with higher interest rates or stricter eligibility rules.

Saved enough for a 10 % deposit? Great – you’ll likely qualify for better rates. Still working on it? Look into Help to Buy, shared ownership, or a guarantor mortgage to bridge the gap.

2. Credit Score – Your Financial Reputation

In the UK, lenders check your credit score through agencies like Experian, Equifax, or TransUnion. A score above 700 is considered good and gives you more negotiating power. Below 600? You might still get a loan, but expect higher rates and a larger deposit request.

Boost your score by paying bills on time, clearing existing credit‑card balances, and avoiding new credit applications in the months leading up to your mortgage request.

3. Income and Employment Proof

Lenders want to see a stable income stream. This means recent payslips, P60 forms, and possibly a tax return if you’re self‑employed. Most banks require at least six months of consistent earnings, and self‑employed borrowers often need two years of accounts.

If you have a side hustle, include it but be ready to show proof of regular payments. A steady job with a clear contract makes the approval process smoother.

4. Debt‑to‑Income Ratio (DTI) – How Much Can You Afford?

DTI compares your monthly debt repayments to your gross monthly income. Most lenders cap DTI at 45 % – meaning if you earn £3,000 a month, your total debt payments (including the new mortgage) shouldn’t exceed £1,350.

Calculate your DTI now. If it’s too high, consider paying down credit‑card balances or postponing a big purchase until after you secure the mortgage.

5. Documentation Checklist

Gather these before you apply:

• Proof of identity (passport or driver’s licence)
• Proof of address (utility bill, council tax bill)
• Bank statements for the last three months
• Employment contract or self‑employment accounts
• Details of any existing loans or credit agreements

Having everything ready speeds up the approval and shows the lender you’re organized.

6. Know Your Loan Types

Fixed‑rate mortgages lock in interest for 2, 5, or 10 years, giving predictable payments. Variable or tracker mortgages move with the Bank of England base rate, so they can be cheaper now but may rise later. First‑time buyers often start with a fixed‑rate to avoid surprise hikes.

Ask your broker which product fits your budget and how long you plan to stay in the home. The right choice can save you thousands over the life of the loan.

Bottom line: the key mortgage requirements are a solid down payment, a good credit score, steady income, a manageable DTI, and the right paperwork. Meet these basics, and you’ll be in a strong position to get a mortgage that works for you. Ready to start? Pull together the checklist above and reach out to a trusted lender or mortgage broker for a personalized quote.