What Actually Stops People Getting a Mortgage?

What Actually Stops People Getting a Mortgage?

Many people assume that getting a mortgage is simply a case of having a job and a deposit. In reality, lenders assess a number of different factors before approving an application.

At Prospect Tree Mortgages we often speak to clients who believe they won’t be able to get a mortgage, when in fact the situation is far more flexible than they realise. On the other hand, there are also cases where small issues could prevent a mortgage from being approved.

Understanding what lenders look for can help you prepare properly before making an application.

Affordability

One of the biggest factors lenders assess is affordability.

This is not just about your salary, lenders also review your regular spending and financial commitments. This may include:

Credit card balances

Personal loans

Car finance agreements

Childcare costs

Monthly living expenses

Even with a strong income, high levels of existing debt can sometimes reduce how much a lender is prepared to offer. However, different lenders assess affordability in different ways, which is why advice can make a big difference.

Credit History

Your credit history helps lenders understand how you have managed borrowing in the past.

Things that may affect a mortgage application include:

Missed payments

Defaults

County Court Judgements (CCJs)

Payday loans

Very high levels of credit usage

That said, not every credit issue will prevent you from getting a mortgage. In many cases it simply means finding the right lender or waiting until the issue is older.

Deposit Source

Lenders will always want to understand where your deposit has come from.

Common acceptable sources include:

Personal savings

Gifts from family members

Sale of another property

Inheritance

What lenders generally want to avoid is borrowed deposits or situations where the source of funds cannot be clearly verified.

Employment and Income Structure

Stable income is important when applying for a mortgage.

If you are employed, lenders will usually look at:

Basic salary

Bonuses or commission

Length of time in the role

If you are self-employed, lenders typically review:

Company accounts

SA302 tax calculations

Dividends or retained profits

There is a common myth that self-employed applicants cannot get mortgages easily, but in reality there are many lenders who are comfortable with self-employed income.

Property Type

Sometimes it is not the borrower that causes the issue, but the property itself.

Certain property types can be harder to mortgage, for example:

Very short leasehold properties

Non-standard construction homes

Some new build flats

Properties above commercial premises

Again, different lenders have different criteria, so what one lender declines another may accept.

The Importance of Getting Advice Early

One of the most useful things buyers can do is speak to a mortgage adviser before they begin house hunting.

This can help you understand:

How much you may be able to borrow

Whether your credit profile may affect an application

How much deposit you may need

Which lenders may suit your circumstances

Often, small adjustments made early can significantly improve the chances of a successful mortgage application. If you are unsure whether you would qualify for a mortgage, speaking to an adviser could give you a much clearer picture of what may be possible.

Your home may be repossessed if you do not keep up repayments on your mortgage. The information contained within was correct at time of publication but is subject to change (published 25 March 2026).