To be eligible for a mortgage in the UK, you must be over 18 years old (some lenders may have a minimum age requirement of 20 or 21). Additionally, most lenders have an upper age limit at the end of the mortgage term, which can range from 65 to 75. Your income is also a crucial factor in determining eligibility, as some lenders have a minimum income requirement, which can range from £10,000 to £25,000.
Your employment status may limit your options, as some lenders don’t accept applicants on zero-hours contracts or those who have been in their current job for less than 12 months. A deposit is also required, and many lenders require a minimum deposit of 5%, although some require 10% or 15%. The source of your deposit is also important, as gifted deposits from family members are usually accepted, but loaned deposits aren’t.
Your lender will assess your debt-to-income ratio, which is the proportion of your monthly income spent on debts and bills such as utilities. They may also check your credit history, with each lender setting their own rules for rejection or approval. If you don’t meet the eligibility criteria of a particular lender, don’t worry, as there are many lenders with different criteria.
For instance, if you’re an older borrower, some lenders will still consider your application as long as you have sufficient income to make repayments. If you’re self-employed, some lenders will assess your income more generously than others, and if you have bad credit, some lenders may be more accommodating than others.
Ultimately, the best way to find a lender that meets your requirements is to speak to a broker who can help you navigate the mortgage market and find the lender that’s the best match for you.