But personal finance experts say issues such as your deposit, your credit score, and your loan-to-value ratio can make a huge difference, particularly when it comes to being approved for a mortgage, and then getting a good rate.
And with dozens of mortgage deals now offering rates under 4%, this could be the best time in a few years to buy.
Why do people get turned down for a mortgage? And how can you avoid that happening?
The affordability test
Martin Lewis said in a recent video post: “Most important, first, number one, the affordability test. When you apply for a mortgage, they are going to check whether you can afford the repayments. Sounds obvious, it is, but you need to understand how it works.”
They’re not just looking to see if you can make the repayments at your current mortgage rate, they also do what’s called a ‘stress test’ to see if the rate went up – as it often does – whether you could pay that.
The three big things that can stop you getting accepted for a mortgage…
More help including using mortgage brokers, how much you can borrow and a best buy comparison in https://t.co/g9xPqPSDtU pic.twitter.com/gbJfL5Yl5W
— Martin Lewis (@MartinSLewis) July 23, 2025
Martin explains: “This isn’t some statistical calculation, as it is with credit cards and loans. They’re actually going to look at your bank statements and other statements, at your incomings and outgoings and your income to see if you could make those payments.
“So if you’re close to the brink, it’s quite important in a run up to applying for a mortgage to go through being frugal for three to six months, so it looks like you’ve got as much room in the affordability test as possible.”
Issues with the property
As Martin says, there are many different types of properties that lenders don’t like.
“Different lenders will have different views,” he says. “But let me give you some examples of some of the types of things that have stopped people getting mortgages in the past.
“If you’ve got a short lease that won’t do that well. Some types of new builds are not popular with lenders. If there are restrictions in your title deeds that can make it more difficult, anything that’s counter normal isn’t good. If you find a very small studio flat, that won’t be particularly popular.”
Cladding is also an issue, and many lenders won’t lend on properties with it. Similarly, high rise blocks can be problematic, but lenders have different rules of what counts of a high rise.
“A really interesting one this if you live above commercial premises, whether it’s shops or restaurants or even an office, that can affect you getting a mortgage,” says Martin.
“I had a former colleague who couldn’t get a mortgage because he was trying to buy a flat that was above Nandos.”
Problems with the structural survey can also stop you getting a mortgage. And, he cautions: “Even if you do manage to get a mortgage the first time, if it’s been difficult, remember, when it comes to remortgaging, getting a cheaper deal later, once your cheap rate is gone, you may find there’s only limited competition, so it won’t be as easy.
“So think carefully about the type of property that you’re buying.”
Credit scores
“You will be credit checked when it comes to getting a mortgage,” says Martin.
“This is probably the least important, but that doesn’t mean it’s unimportant. So have you paid your debt back on time? Have you defaulted in the past? Do you have a county court judgment against you if you have a really bad credit history?”
His full explainer on this is here.
How to get approved on a low rate mortgage, and get out of the rental trap?
“Right now, the average first-time buyer needs around £60,000 for a 15% deposit,” says Aaron Peake, Personal Finance Expert at free credit score service CredAbility.
“That’s before stamp duty, legal fees, and moving costs. But we’re starting to see a mortgage rate price war. Lenders like Barclays, HSBC, and Halifax have all cut their fixed rates in recent weeks. There are now 65 deals under 4%. And, if the Bank of England cuts the base rate in August, we could see even better offers. That means monthly repayments could be more manageable, and borrowing becomes cheaper.
“The property ladder isn’t out of reach. You just need a plan. Lenders want to see good credit, a solid deposit, and sensible borrowing. Fix those and you could get the keys years earlier than you think.”
Six tips to get on the property ladder quicker
Check your credit score first
“Your credit score is one of the first things lenders check,” says Aaron.
“A low score can mean higher interest or no deal at all. You don’t need a perfect score, but even a 50-point boost could unlock better mortgage options. Check your score for free with CredAbility or TotallyMoney and work on improving it if needed.”
Use LTV to your advantage
Loan-to-value (LTV) is the amount you borrow compared to the value of the property. A lower LTV means better mortgage rates. Most first-time buyers have a 90% LTV, but if you can push that down to 85% or even 80%, you’ll save thousands in interest. Aaron says: “Some lenders offer 95% deals meaning you only need a 5% deposit, but they come with higher rates.”
Use mortgage calculators (but don’t trust them blindly)
Online mortgage calculators are handy, but they often don’t include real-life spending or future changes.
“A calculator might say you can borrow £250k, but once childcare, loans and other costs are factored in, the number can drop fast,” says Aaron.
“A mortgage broker can help you get a realistic figure and find lenders who are more generous.”
Recommended reading:
- Martin Lewis shares key advice for mobile phone users
- Martin Lewis: How to stop a banking scam with just three digits
- Martin Lewis on the £20,000 cash rumoured ISA changes
Look at opening a Lifetime ISA
You can save up to £4,000 a year and get a 25% bonus from the government. That’s up to £1,000 free cash every year just for saving. But it’s only helpful in some circumstances, so read up on it first.
Cut back and stash the savings
Easier said than done, in the current climate.
Aaron says: “You don’t need to give up everything you enjoy, but being more mindful with your money can fast-track your savings. If you can live at home for a while or split rent in a houseshare, you could put away hundreds extra each month. Even small tweaks like cancelling unused subscriptions or setting a spending cap on nights out can build up quickly.”
Don’t panic about rates
“Mortgage rates are still higher than a couple of years ago, but they’ve started to come down,” Aaron.
“That’s because banks expect the Bank of England to cut interest rates soon, and they’re adjusting their deals in advance. Lenders are now fighting harder for new customers, which means better offers are coming back on the table.”
