Mortgage FAQs: Can You Get a Mortgage?
, by Matt Stevens
In recent years, getting a foot on the property ladder has become increasingly challenging. A range of factors now impacts our ability to save for a deposit and keep up with mortgage repayments.
With growing financial pressures and economic uncertainty, you may be wondering whether you’re eligible for a mortgage. The good news is that, in many cases, it’s still possible to secure a deal.
To support you on your journey, we’ve put together this guide addressing some of the most frequently asked questions about mortgage eligibility. We will cover:
Can You Get a Mortgage with Bad Credit?
Yes, obtaining a mortgage with bad credit is possible, but it is likely to be more difficult than for someone with a strong credit history. Your credit record plays a significant role in the assessment of your application, particularly with mainstream lenders such as banks and building societies. These institutions typically require applicants to pass a strict credit check, and decisions are often based heavily on the outcome.
A poor credit score can substantially reduce your chances of approval. Even if you have a stable income and a deposit saved, many lenders may still be unwilling to offer you a mortgage if your credit history is unfavourable. If you're hoping to apply to a standard mortgage provider, there may be limited short-term options for improving your credit score. Enhancing your credit profile takes time, and even then, approval is not guaranteed.
To get a clearer picture of your financial standing, consider carrying out a free credit check (free for 30 days, then £14.99 per month - cancel anytime online). This will help you assess your current position and identify any steps you can take to improve your score.
Can You Get a Mortgage with a CCJ?
Having a County Court Judgement (CCJ) on your credit file can make securing a mortgage more challenging, but it doesn’t necessarily mean you’ll be declined. Much depends on the circumstances surrounding the CCJ. For instance, a smaller, older judgement is likely to be viewed more favourably than a recent one for a significant amount.
Your chances of approval improve if you’ve since maintained responsible financial behaviour and can demonstrate stability, such as consistent income and timely repayments. Some lenders specialise in adverse credit, including CCJ mortgages, and may be more willing to consider your application.
Can You Get a Mortgage with an IVA?
Having an active or recent Individual Voluntary Arrangement (IVA) on your credit file can significantly reduce your chances of being approved by a mainstream mortgage provider. As a legally binding agreement to repay debts, an IVA is often seen by lenders as an indication of past financial difficulty and a reliance on third-party support to manage debt.
If your IVA is still ongoing, lenders are likely to view this as a sign of substantial outstanding debt and may question your ability to keep up with mortgage repayments.
An IVA remains on your credit record for six years from the date it was registered. Even if the arrangement has been completed, it may still impact your ability to secure a mortgage. In such cases, you have two main options: wait until the IVA is removed from your credit file before applying, or seek out a specialist lender who is experienced in dealing with applicants who have a history of adverse credit.
Can You Get a Mortgage with a Default?
A previous default on your credit record can be a concern for many mortgage lenders, as it may indicate a risk of missed repayments in the future. Since lenders are committing to a significant loan, they need reassurance that you’ll be able to meet your monthly mortgage obligations.
However, not all defaults are treated equally. Some providers may be willing to consider the context. For example, if the default occurred some time ago and your recent credit history shows responsible financial behaviour, they may be more inclined to take a balanced view. If you can show that the default was an isolated incident and that your finances are now stable, you may still be able to secure a mortgage.
Can You Get a Mortgage after Bankruptcy?
Securing a mortgage following bankruptcy can be challenging, particularly with mainstream lenders. Bankruptcy remains on your credit file for six years from the date of registration, and most providers will uncover this during a credit check. High-street banks and building societies are generally cautious about lending to individuals with a history of bankruptcy, and many will ask if you've ever been bankrupt, even after it has been removed from your credit report.
That said, it’s not impossible. Many people have successfully obtained a mortgage after bankruptcy, depending on their individual circumstances. You may improve your chances by saving a larger deposit, demonstrating a stable income, and showing responsible financial behaviour since the bankruptcy.
Can You Get a Mortgage with Debts?
Yes, it is possible to obtain a mortgage while carrying existing debts. In fact, many people manage both personal debts, such as credit cards, student loans, or car finance, alongside mortgage repayments.
What matters most to lenders is how well you manage your debts. If you’ve kept up with payments and your borrowing hasn’t caused financial difficulties, this may reassure lenders of your ability to afford a mortgage. In some cases, responsibly managed debt can even enhance your credit score, which may work in your favour during the application process.
To assess whether a mortgage is affordable for you at this stage, try using our mortgage repayment calculator. It can help you estimate your monthly repayments and plan your future budget more effectively.
Can You Get a Mortgage on Benefits?
It is possible to get a mortgage while receiving benefits, but your chances will largely depend on the type of benefit and whether you have additional sources of income. If your income is solely from benefits or maintenance payments, many mainstream lenders may be reluctant to approve your application.
Although, if you also receive income from employment, self-employment, or a pension, some lenders may include certain benefits as part of your affordability assessment. These can include Child Benefit, Child Tax Credit, Working Tax Credit, and a range of disability-related benefits such as Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance, and Employment and Support Allowance (ESA).
Each lender has its own criteria, so it’s important to check which types of income they accept.
Can You Get a Mortgage with No Deposit?
Most mortgage providers in the UK require a minimum deposit of 5-10% of the property's value. True 100% mortgages, where no deposit is needed, are now extremely rare, with only a handful of building societies offering them under specific conditions. Rather than seeking to avoid a deposit entirely, it’s often more practical to explore schemes designed to help make deposits more achievable.
Guarantor mortgages are one such option. These involve a close family member, usually a homeowner, acting as a guarantor. They may use their savings or property as security for your mortgage. Provided you keep up with repayments, the guarantor’s funds or collateral are usually returned after a set period, sometimes with interest.
Shared ownership is another route worth considering. This government-backed scheme allows you to purchase a share of a property, generally between 25% and 75%, while paying subsidised rent on the remainder to a housing association. Because you’re only buying a portion of the home, the deposit required is significantly lower.
Can You Get a Mortgage Without a Job?
It is possible to obtain a mortgage without current employment, but having a stable job significantly improves your chances of approval. Lenders favour applicants with a regular income, as this demonstrates the ability to keep up with repayments.
If you do not have a job but have sizable savings, you may still be considered, as these funds can provide reassurance that you can meet your mortgage commitments. Additionally, if you are about to start a new job, providing evidence of this can strengthen your application.
Can You Get a Mortgage if You’re Self-Employed?
Yes, you can obtain a mortgage if you are self-employed, though the process can be more complex than for employed applicants. Most lenders will require proof of your income to assess your ability to meet repayments. Typically, this means you’ll need to have been trading for at least three years and provide two years’ worth of accounts or tax returns for review.
However, some lenders may be willing to consider applicants who have been trading for a shorter period, depending on individual circumstances.
Since each lender has different criteria and preferences, it’s advisable to shop around for a provider that best suits your situation. Consulting a mortgage broker is highly recommended here. They can guide you through the process, identify suitable lenders, and help ensure your application meets the necessary requirements.
Can You Get a Mortgage as a Student?
In principle, yes, students can apply for a mortgage, but approval largely depends on your financial circumstances. Being enrolled at university does not automatically disqualify you, provided you can afford the deposit and illustrate a reliable income sufficient to cover repayments.
If you are a part-time student who is also employed, you will generally be considered like any other applicant. However, full-time students with limited or no employment are unlikely to be accepted by most lenders.
One possible option is a guarantor mortgage, where a family member co-signs the mortgage agreement. Even then, you must still be able to meet the monthly repayments yourself.
Can You Get a Mortgage at 50?
It is possible to get a mortgage at 50, but it can be more challenging. Lenders often view applicants nearing retirement with caution, as they want to guarantee you’ll be able to afford repayments throughout the mortgage term. Recent stricter lending regulations mean providers now carry out more thorough affordability checks than before.
To improve your chances, you might consider a shorter-term mortgage that ends around the time you plan to retire. However, this often means higher monthly repayments, as the loan is repaid over a shorter period.
If you wish to take out a mortgage extending beyond your retirement, you will need to provide clear evidence that you will continue to have sufficient income to meet repayments, such as a pension or other reliable income sources.
Can You Get a Mortgage at 60?
Securing a mortgage at 60 or older can be challenging, much like applying in your 50s. Many lenders set upper age limits, often requiring that the mortgage be fully repaid by the time you reach 65 to 70 years old. If you’re applying at 60, your options may be limited to shorter-term mortgages, typically lasting between 5 and 10 years.
You will also need to provide evidence of income, especially if you plan to retire before the mortgage term ends.
Can You Get a Mortgage on Your Own?
Yes, you can obtain a mortgage as a sole applicant. While applying with a partner or co-borrower can help by combining incomes and savings, lenders are equally willing to consider individuals who can provide a 5–10% deposit and show they can afford the repayments on their own.
You can use our mortgage affordability calculator to estimate how much you might be able to borrow based on your income. If you’re a first-time buyer, we offer tailored advice to guide you through the entire process. Moreover, we can provide specialist support if you wish to explore government schemes designed to make homeownership more affordable.
Can You Get a Mortgage if You Already Have One?
Yes, it is possible to take out a second mortgage even if you already have one. These are typically referred to as second home mortgages, where your current mortgage is attached to your main residence, and the new mortgage is used to purchase an additional property.
Securing a second mortgage can be more challenging, as lenders will require clear evidence that you can afford both sets of repayments. These mortgages usually require larger deposits and often come with higher interest rates compared to those for a primary residence. While the financial assessment is similar to that of a first mortgage, lenders will be more cautious and thorough when reviewing your application.
There are various reasons people apply for a second mortgage. For instance, moving out of their main residence, purchasing a holiday home, or buying a property to rent out or renovate as an investment. We offer expert advice on buy-to-let mortgages, whether you’re investing in property within the UK or looking to expand your portfolio with a holiday home abroad.
Can The Mortgage Genie Help Me Get a Mortgage?
Absolutely, The Mortgage Genie can support you in securing a mortgage for your ideal home. Our experienced team works with clients from all walks of life and can guide you through the entire application process, whatever your circumstances.
Whether you're a first-time buyer, moving home, or seeking a mortgage with adverse credit, we’ll ensure you're in the strongest possible position to apply. We'll also help you find a deal with terms that suit your needs and financial situation.
To help you get started, we offer a range of mortgage calculators so you can estimate what you may be able to borrow and budget accordingly. Get in touch with us today, we’re here to make your mortgage journey as smooth and successful as possible.
The above blog has information contained within which was correct at the time of publication but is subject to change.
