Am I eligible for a mortgage?

Who is this page for?

This page is for people wondering if they are eligible for a mortgage. You will learn how lenders decide who to offer a mortgage to and what you need to apply.

Am I eligible for a mortgage?

When you apply for a mortgage, a lender will want to know that you can repay the money you borrow. They will look at lots of factors to decide whether you are eligible for a mortgage.

These include your finances, any debts, your credit history, how much you earn and how much you spend.

It’s not good for the lender or the borrower if a mortgage is given to someone who can’t afford it. Making checks is a way of making sure that the person who is given the mortgage is happy with the repayments and can commit to the full term.

Check your eligibility with an Agreement in Principle

One of the key methods of checking your mortgage eligibility is to apply for an Agreement in Principle.

By applying for an Agreement in Principle, a lender will ask for financial information and perform a soft credit check to let you know if you're likely to be accepted. It will also show you how much you might be able to borrow if you were accepted for a full mortgage.

Mortgage eligibility factors

A lender will look at lots of factors before they decide if you are eligible for a mortgage, including:

Your credit file

Your credit file is a financial record of payments, credit and debts. This includes things like credit card debt, missed bill payments and how many credit accounts you have open.

Missed payments will show up on your credit file. Each lender will look at your credit file when deciding whether or not you are eligible for a mortgage.

Employment

You will need to make enough money each month to cover the monthly repayments. A lender will look at how much you earn and your employment history.

If you are self-employed or do not have a regular income, you might find it harder to agree mortgage terms. 

Your finances and money management

Your financial history is important too. A lender will want to know if you have any savings or debts. Credit card debts or monthly payments on your car or phone contract are taken into account.

Lenders will also look at student loan debts – but only if they are being paid. If you aren’t earning enough to pay back a student loan they won’t be taken into account.

Your deposit

Paying a larger deposit means you have less to pay back in the future. It is good to pay as much as you can comfortably afford upfront. 

Your age

You can only apply for a mortgage if you are over 18. All lenders have different rules about how old you can be to get a mortgage. Your current and retirement income will be considered if you want to retire during your mortgage agreement.

What documents do I need to prove my eligibility?

You might need to show your provider some documents to prove your eligibility.  They will tell you which documents you need when you apply.

You may need:

  • P60 Form - This shows how much you earn and pay in tax. You can get one from your employer.
  • Payslips - A lender may ask for at least three months of payslips.
  • Personal ID - You may need a passport or driving licence to prove your identity.
  • Utility Bills - Evidence of your monthly outgoings will help a lender work out how much you can afford to repay.
  • Proof of Address - Provide details of your current address, such as a utility bill.
  • Benefits or income support - You may need to disclose whether you receive any government benefits or income support.
  • Bank statements - Lenders may want to see evidence of your monthly bank statements and any savings you have. 
  • Debts - You may need to provide details on any debts you have, such as car payments or credit card debt. You will also need to show details of any personal loans or other mortgages you have.

If you are self-employed, you will need to provide more details of your income. This could be with:

  • Tax return forms
  • Account statements for the past three years
  • Expense receipts

Buy to Let eligibility

Buy to Let mortgages are when you buy a property to rent out, instead of to live in. You will need to meet stricter criteria to be eligible.

You will usually need to provide a deposit of at least 25%. Some lenders advise that you pay a deposit of around 40%.

As well as showing the lender all the same documents as a residential mortgage, you will need to give details of how much you will charge for rent.

Lenders will consider a range of factors before they decide your mortgage eligibility. These include your:

  • Age
  • Monthly income
  • Planned rental income from the property
  • Credit history
  • Current mortgage
  • Other Buy to Let homes that you own

The content on this page is for reference and does not constitute finance advice.

For impartial financial advice, we recommend government bodies like the Money Advice Service.

Calculators & tools

We have a range of mortgage calculators to help you:

  • Find out how much you could borrow from Lloyds Bank
  • See how much you could save if you make overpayments on your mortgage
  • Get an idea how a change to the Bank of England Base Rate could affect your monthly payments

Use our calculators and tools >

Need to speak with someone?

You can talk to us over the phone or use our mortgage video service from the comfort of your own home.

Contact us

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

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