Can I get a mortgage?

Learn about the mortgage approval process, eligibility requirements and how to improve your chances of getting a mortgage.

Key takeaways

  • We’ll always do a mortgage eligibility check as part of the application process to decide whether we can offer you a mortgage. 
  • We’ll look at various factors when deciding whether to approve your mortgage application, such as your finances and credit history.
  • There's no guarantee you'll be accepted for a mortgage, but there are things you can do to increase your chances such as improving your credit score and paying off any existing debts. 

In this guide

How does the mortgage approval process work?

Mortgage eligibility factors

What documents do you need to get a mortgage?

How to check your mortgage eligibility

How can I improve my mortgage eligibility?

Frequently asked questions 

How does the mortgage approval process work?

 

The mortgage approval process involves detailed checks to make sure you can afford the repayments and includes a hard credit search.

Your lender will usually check things like:

  • your affordability – if you can afford to repay the mortgage
  • your borrowing history – whether you have a track record of keeping up with repayments
  • your loan-to-value ratio – how big the loan is compared to your deposit size
  • your property’s value – they might do a mortgage valuation to check the home you want to buy is worth the sale price.

Within these checks, lenders will look at lots of different factors that might impact your mortgage eligibility.

An agreement in principle (AIP) is different to a mortgage application. It includes a soft credit search and gives you an idea of what you could borrow based on the details you enter.

Mortgage eligibility factors

Your credit rating

Lenders will look at your current credit score and credit history when deciding whether to give you a mortgage. This shows us your past experience of paying off debts and helps us work out if you’re likely to keep up with repayments. Learn more about what affects your credit score.

A good credit score could mean you’re more likely to get approved for a mortgage. But a poor rating or history of missed payments might impact your application. 

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Your income and employment

Lenders look at your income and employment to check you can afford your mortgage repayments.

If you're self-employed, run a business or work freelance, you can still get a mortgage, but may need to share extra proof of income.

You can also get a mortgage on a low income. Lenders consider other factors too and there are steps you can take that may help.

Getting a mortgage on a low income

Your mortgage deposit

A larger mortgage deposit means you have a lower loan to value (LTV) ratio. This could improve your mortgage eligibility by having more equity in your home which can protect you from falling into negative equity if your property value declines. 

You might even get a better mortgage rate with a lower LTV. So, it’s a good idea to pay as much as you can comfortably afford upfront.

How to save for a deposit Opens in same tab

Your finances

As well as your income, lenders will also look at any savings, outgoings and expenses. They may also look at things like any existing debts and monthly payments on your car.

This gives lenders a good idea of how you manage your money and whether you can afford your mortgage repayments on top of these expenses.

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How much you want to borrow

Your loan size can also impact your mortgage eligibility. The less money you need to borrow, the more affordable it could be to pay back and more likely lenders will accept your application. 

You can use a mortgage calculator to get an idea of how much you could borrow before you apply. 

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Your age

Your age can affect whether you can get a mortgage and how much you can borrow. To apply for a Lloyds mortgage, you must be 18 or over, or 21 or over for a buy-to-let mortgage. Your mortgage will need to end by age 80, or 99 for a buy-to-let mortgage. If you plan to retire during your mortgage term, we'll consider both your current and retirement income.

More about mortgages and retirement

What documents do you need to apply for a mortgage?

You might need to show your provider certain documents to prove your eligibility, such as:

  • payslips – for the last 3 months
  • ID – such as your passport or driving licence
  • proof of address – on a bank statement or utility bill
  • proof of any benefits or income support you’re receiving
  • bank statements – for the past 3 months
  • proof of deposit – saving statements or a signed form if you have a gifted deposit.

If you’re self-employed, your lender may also ask to see:

  • tax assessment from the last 2 years
  • your accounts from the last 2 years.

How to check your mortgage eligibility

 
Key in door

One way to check your mortgage eligibility is by applying for an agreement in principle (AIP).

You’ll need to provide details about your financial circumstances. The lender will perform a soft credit check to let you know how much you could borrow before you make a full mortgage application. 

It should take about 10 minutes to apply for an agreement in principle (AIP) online with Lloyds.

Apply for an agreement in principle

You could lose your home if you don’t keep up your mortgage repayments

How can I improve my mortgage eligibility?

There’s no way to guarantee you’ll be accepted for a mortgage. But there are things you can do that could increase your chances. 

  • Save for a large deposit. The higher your deposit and lower your LTV, the less you need to borrow. This could also make lenders more likely to lend to you.
  • Building your credit score. Making payments on time and managing your accounts well could help improve your credit score. This could also help show you’re a responsible borrower.
  • Pay off any existing debts. Having little or no outstanding debts could make lending to you less of a risk.
  • Get a joint mortgage. Buying a home with a friend or partner means borrowing based on your combined income.
  • Have a steady income. Being in employment for over 6 months and having steady income could make lenders more likely to accept your application.

Let's look at the details

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