A mortgage is the biggest financial commitment you’ll ever make so it is important you speak to the right person. There are many mortgage providers from your local bank to specialist lenders.

How to apply for a mortgage

When you apply for a mortgage, lenders have to make sure that you can afford your monthly repayments. Read on to learn everything you need to know about applying for a mortgage.

How do lenders check I can afford a mortgage?

Lenders will add up all your household income – including your basic salary and any additional income you receive from a second job, freelancing, benefits, commission or bonuses.

Checking affordability is a much more detailed process. Lenders take all your regular household bills and outgoings into account, along with any debts such as loans and credit cards, to make sure you have enough left to cover the monthly mortgage repayments.

They also have to ‘stress test’ whether you could still afford the mortgage if interest rates were to rise, or if you were to retire, go on maternity leave or end a fixed-term contract.

In addition, they’ll run a credit report with a credit reference agency to take a look at your financial history and assess how much of a risk lending to you might be.

We suggest you contact an independent financial advisor (IFA) who you can discuss all your details to determine what mortgage you are eligible for.

Click here for our recommended mortgage advisor IM Mortgages