Mortgage eligibility
Mortgage eligibility criteria varies from lender to lender, so there is no universal set of criteria that will guarantee that you qualify for a mortgage.
Last updated on
May 22, 2025 17:45
This is great news because it means that not meeting the criteria of, or even being rejected by, one lender won’t necessarily mean that you can’t get a mortgage with another one.
There are lots of similarities in how lenders will determine your eligibility, even though they each have different ideas on how applicants should meet these demands. We look at how lenders will assess your application, why it’s important to choose a lender with criteria matching your circumstances, and how a broker like Habito can help you to find them.
Although the specifics of how to meet each of these criteria varies by lender, most will be looking at your circumstances to assess the following:
The minimum age to possibly get a mortgage with any lender is 18, although some prefer you to be 21, especially for buy-to-let mortgages. At the other end of the scale, most lenders also have an upper mortgage age limit. This can be the oldest you can be on application, or the oldest you can be when your mortgage is completely repaid, or both.
The upper mortgage age limit varies quite a lot between lenders, from around 75 to around 95 years old. That said, a few specialist lenders have no upper age limits.
Some lenders have a minimum income requirement, but this is less common than you might think. Usually, minimum income thresholds will be fairly low, ranging from around £10,000 to £25,000.
However, your income will play a major role in your affordability assessment, which is one of the ways that lenders decide whether to approve your application. Typically, they will be looking for it to be stable and enough to comfortably meet your mortgage repayments, alongside your other living expenses.
Whether or not and how you’re employed won’t necessarily determine whether you can get a mortgage or not, but lenders will take an interest in how you sustain yourself financially. For example, self-employed applicants usually need to prove that they have maintained a stable income for longer than an employed applicant. Retirees may only qualify for certain mortgage products, depending on the lender, and those in a professional career may be treated more favourably by some lenders.
How much deposit you need will depend on the size of your loan, but most lenders have a maximum LTV (loan to value) of 95%, meaning you’ll usually need to invest at least 5% of the property value as a cash deposit. This can vary by lender, and depending on the property type and your circumstances, so a minimum deposit requirement may be as high as 50% in certain cases. It is possible to obtain a 100% mortgage, however, they are now extremely rare and typically only available under very specific circumstances, such as through government schemes or with family support.
As well as the amount of deposit, lenders will also be interested in where the deposit has come from and whether you can prove it. Not many lenders accept deposits from gambling wins, credit cards or offshore sources, for example. Although many lenders accept gifted deposits, you’ll need to have the person gifting it sign a document confirming that they won’t ask for it back, and that they have no stake in the property.
Almost all mortgage lenders will use your credit record to help decide whether to approve your mortgage and what sort of interest rates you’re entitled to. However, the way in which they use credit files varies quite significantly. For example, some lenders will favour one credit reference company and others will look at all 3. Some will have their own minimum credit score, which varies depending on which reference agency is used, whereas others don’t set any numerical credit score, and look at your credit file as a whole to determine whether they consider you a risky borrower.
The level of risk each lender is willing to take on also varies, with some allowing certain minor bad credit issues, and others (usually high street banks) being very strict and not allowing for any adverse history. Across the board, it can still be difficult to get a mortgage if you’ve had a repossession or bankruptcy, but specialist lenders (also known as sub-prime lenders) now exist to help applicants with poor credit histories. These lenders may offer more flexible terms, though interest rates will likely be higher, and the LTV ratio may be lower.
When looking at affordability, lenders will look at your income and outgoings, as well as what percentage of your outgoings are tied to previous debts - this is known as your DTI or debt to income ratio. Lenders’ maximum DTI ratio varies from around 25-50% of your income.
It’s a good idea to maintain sensible spending practices before your mortgage application, as lenders will be looking for signs that you manage your income well. If it’s possible to clear debts and reduce spending to essentials only, this will aid in your assessment.
As well as looking at how risky they consider lending to you as an individual to be, lenders also have criteria relating to the property they’re investing in when they loan you a mortgage. Many lenders have preferences in terms of the property type, meaning it can be more difficult to secure a mortgage for properties that aren’t standard brick and mortar houses, such as flats or non-traditional constructions.
However, as with all mortgage criteria, this varies between lenders, and some are much more flexible than others. Alongside the property type and condition, they will also consider the location and future saleability. If you’re buying a property as an investment, there will also be additional considerations, such as how many and what types of tenants you will let to.
Assuming you meet the criteria set out by the lender, the affordability assessment is the major deciding factor in whether or not you’re approved for a mortgage. Each lender has their own process, but generally they’ll look at all of your income and outgoings to decide whether you could afford the repayments on the size of mortgage you need.
The more information you can provide to prove that you can afford the mortgage, the better. Lenders will be looking at payslips or tax calculations and bank statements, but other supporting documents that may help are:
It’s also likely that lenders will ‘stress-test’ your income. This is where they check whether you’d be able to afford repayments in certain circumstances, such as life scenarios like having a baby or industry changes, such as a rise in interest rates.
Lenders tend to use bank statements as an overview of your income and outgoings, but the verification needed beyond that depends on the type of income you have, for example:
If you don’t pass the affordability assessment for the size of mortgage that you need, it’s unlikely that you would be eligible - although keep in mind that you may be eligible for a smaller mortgage, if you have any flexibility.
It’s also possible to pass the affordability assessment, but not meet the other lender criteria listed above, however. So keep in mind that both elements are important.
Also, remember that not meeting the criteria with one lender won’t necessarily mean that you aren’t able to get a mortgage at all. As there are so many different lenders, each with their own criteria, it’s possible to be declined for a mortgage with one lender but be accepted by another. Approval will always depend on your personal financial situation and this is where a mortgage broker, like ourselves, can be really useful.
Let Habito help find the right lender for you
People in certain circumstances may find it slightly more challenging to get a mortgage, but that doesn’t mean it’s not possible. If you fall into one of the following categories, there may still be specialist options available to you:
The closer you are to both retirement age and the lender’s maximum age limit, the harder it can be to get a mortgage. This is mainly because the mortgage term (number of years you have to repay) is typically shorter, meaning your affordability can be stretched.
However, there are options that you could consider, even if you don’t qualify for a standard mortgage, such as a retirement interest-only mortgage or equity release products.
Although many people think that having a poor credit history instantly rules out a mortgage, there are actually specialist lenders who deal specifically with bad credit mortgages. They are known as sub-prime lenders, and usually have far greater flexibility than standard high street banks.
Keep in mind that if you’re borrowing with poor credit, the interest rates will likely be higher, and the LTV may be reduced. However, speaking to a broker can ensure you find the most suitable lender for your circumstances. If you’re not currently suitable for a mortgage, they can also offer advice on how to become more mortgageworthy in the future.
As a first-time buyer, it can be difficult to meet the minimum deposit requirements, especially when property values are high. Depending on how long you’ve been employed, it can also be difficult to meet the affordability requirements of a mortgage. However, there are a number of specific mortgages designed to help in these scenarios, such as guarantor mortgages, family-assisted mortgages, and joint borrower sole proprietor mortgages.
It may also be possible to use a gifted deposit or a government home ownership scheme to help with your deposit or affordability. There are lots of routes onto the property ladder, so reach out to our friendly team if you feel like you might need a step up.
It’s perfectly possible. The HMRC Mortgage Verification Scheme was set up to help tackle mortgage fraud, making it much easier for lenders to check if the numbers on your application match their records.
Although some lenders will use the HMRC Mortgage Verification Scheme, it’s also possible that they’ll contact your employer directly to ensure that you’re a current member of staff. However, all lenders are different, and it would depend on how cautious they are generally, as well as how much of a risk your overall circumstances present to them.
There is no universally accepted credit score that allows you to get a mortgage. This is because:
All lenders set their own minimum credit score requirements
Not all lenders use scores; some look at the credit file more holistically
Each of the 3 main credit reference agencies uses a different scoring system, and all lenders use different credit reference agencies
No matter what your credit score is, it may still be possible to get a mortgage; however, it’s always beneficial to improve your credit score before a mortgage application.
Last updated: 28/4/2025
[Disclaimer] This content is intended for general guidance and is not a substitute for personalised mortgage advice.
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