Buying a home is one of the biggest financial decisions you'll make. Too many people rely solely on what lenders say they can afford, but lenders may approve you for more than you can comfortably manage.

This checklist walks you through the same criteria mortgage lenders apply, plus the realistic budget considerations they don't always cover. It takes around 30 minutes to work through, and should help you form a clearer picture of where you stand before speaking to a lender or broker.

Your home may be repossessed if you do not keep up repayments on your mortgage. Always make sure you can afford repayments before applying.

Step 1: Assess your income and debt-to-income ratio

Your income determines how much mortgage you can handle. But it's not just about your salary; it's also about how much of your income already goes towards existing debts.

Calculating your gross monthly income

Start with your gross monthly income (before tax). Include your salary, bonuses, commission, and any regular freelance income. Avoid including income that isn't guaranteed or may stop soon.

If you're self-employed, lenders typically require at least two to three years of accounts. Use your average monthly income across that period, and gather your SA302 tax calculations and tax year overviews from HMRC early.

Understanding the 28% rule and debt-to-income limits

A widely used rule of thumb is that your mortgage payment should not exceed 28% of your gross monthly income. This is not a strict regulatory limit, but it's a useful guide: it means that if you earn £40,000 a year, a monthly mortgage payment of around £933 or less is generally considered manageable.

Lenders will also look at your wider debts, including credit cards, loans, and car finance, when assessing how much they're willing to lend. The higher your existing monthly debt commitments, the less you're likely to be offered, regardless of your income.

Most lenders in the UK will offer up to 4 to 4.5 times your annual salary, though some may stretch to 5 times for applicants with strong profiles. Lender criteria vary, and the figure you're offered will depend on a full affordability assessment, not just income.

Indicative DTI benchmarks for 2026

The table below illustrates how the 28% guideline applies at different income levels. Loan amounts shown are illustrative only and assume a 25-year repayment term; actual offers will depend on your lender, credit profile, and deposit.

*Figures are illustrative. Actual amounts vary by deposit, credit profile, and lender criteria. This is not a mortgage offer or affordability assessment.

Stress testing: what it means for you

Lenders are required by the FCA to assess whether you could still afford your mortgage if your circumstances changed. Most lenders apply stress testing to check you could manage repayments at a higher interest rate than the one you're applying for. This means you may be offered less than headline income multiples suggest. Building a budget that leaves some headroom is important for this reason.

Step 2: Review your credit score and history

Your credit profile influences both whether you qualify for a mortgage and what interest rate you're offered. Even a modest improvement in your credit score may open up better deals, though outcomes depend on individual lender criteria.

How to check your credit report for free

Check your credit report with all three UK agencies before applying: Experian, Equifax (via ClearScore), and TransUnion (via Credit Karma). You're entitled to a statutory free report from each.

Check all three reports for errors, missed payments, or debts you don't recognise. Correcting errors can take 30 to 60 days, so it's worth starting this process early. Even small inaccuracies can affect your application.

UK credit score ranges and mortgage availability

The UK has three credit reference agencies, each with its own scoring scale. There is no single universal credit score, and lenders use their own internal models alongside CRA data. The table below gives a general guide:

These bands are guides only. Lenders make their own decisions based on your full profile, not just your score. Being in a 'good' band does not guarantee mortgage approval.

Common credit issues and how to address them

Late payments stay on your credit record for six years, but their impact typically diminishes over time. Steps that may help improve your profile before applying include:

• Paying all bills on time in the months before applying

• Registering on the electoral roll at your current address

• Keeping credit card balances low relative to your limits

• Avoiding new credit applications while preparing for a mortgage

Each mortgage application triggers a hard credit search, which is recorded on your file. Making multiple applications in a short space of time can have a negative effect, so it's worth doing your research before formally applying.

How credit affects what you're offered

Borrowers with stronger credit profiles tend to have access to lower interest rates and a wider choice of lenders. The difference between rates available to someone with a thin credit history and someone with an established, well-managed file can add up significantly over a 25-year term. The exact impact depends on your lender and the products available at the time.

Step 3: Evaluate your savings and deposit readiness

Your deposit size affects your interest rate, monthly payment, and which lenders will consider you. It's also important to budget for purchasing costs on top of your deposit.

Down payment requirements and purchasing costs

Most residential mortgage products require a minimum deposit of 5%, though lower LTV mortgages (meaning a larger deposit) generally attract better rates. On top of your deposit, budget for purchasing costs including surveys, legal fees, stamp duty, and removal costs. These can vary considerably depending on property price and location, but are worth estimating early in your planning.

Deposit options available to first-time buyers in 2026

Note: The Help to Buy equity loan scheme (England) closed to new applicants in October 2022. It is no longer available for new purchases.

ClearScore is a credit broker, not a lender.

Using a Lifetime ISA to save your deposit

If you're a first-time buyer aged 18 to 39, a Lifetime ISA (LISA) allows you to save up to £4,000 per year towards a first home and receive a 25% government bonus of up to £1,000 annually. The property must cost £450,000 or less, and you must have held the account for at least 12 months before using it towards a purchase.

The government announced in the Autumn Budget 2025 that the LISA will eventually be replaced by a new first-time buyer ISA, expected from April 2028. Existing holders can continue contributing indefinitely. If you withdraw funds from a LISA for any reason other than buying a qualifying first home or retirement after age 60, a 25% government charge applies, which means you may get back less than you contributed.

Loan-to-value (LTV) ratios explained

LTV is the percentage of the property's value you're borrowing. A £200,000 home with a £20,000 deposit gives a 90% LTV. Lower LTV ratios generally unlock better rates and more lender options. The step from 95% LTV to 90% LTV in particular can make a noticeable difference to the range of products available to you.

The chart below illustrates the relationship between property value and deposit requirements for three popular LTV ratios: 75%, 90% and 95%. As you can see, a lower LTV requires a larger cash deposit.

Step 4: Factor in mortgage rates and market conditions

Interest rates directly affect your monthly payment and how much you can borrow. Even small changes in rate have a significant impact over a 25-year term.

Current UK mortgage rates in 2026

Mortgage rates change regularly and depend on your deposit size, credit profile, and the lender. The figures below are for illustrative purposes only; always check current rates with a lender or broker.

How interest rates affect monthly repayments

The table below shows how different interest rates affect monthly payments on a £200,000 repayment mortgage over 25 years:

These figures are illustrative only and do not account for product fees, insurance, or changes in rates over the mortgage term.

Fixed vs variable rate mortgages

Fixed-rate mortgages protect you from interest rate rises during the fixed period but typically cost more initially than tracker or variable deals. Variable and tracker rates can fall if the Bank of England base rate falls, but they can also rise, making monthly payments unpredictable.

Neither option is inherently better. The right choice depends on your circumstances, how long you plan to stay in the property, and your appetite for payment uncertainty. A regulated mortgage broker can help you weigh the options based on your situation.

Regional variations and house prices

House prices vary substantially across the UK. What your budget can achieve in Manchester, Cardiff, or Edinburgh will differ significantly from London. When comparing areas, factor in not just the property price but also commuting costs, council tax bands, and local services.

Step 5: Understand the mortgage application process

A mortgage in principle (also called an agreement in principle or decision in principle) gives you an early indication of how much a lender may be willing to offer. It's not a guarantee of a mortgage, but it can help you understand your budget and show sellers you're a serious buyer.

Documents typically required for a mortgage application

What affordability checks involve

Lenders conduct a full affordability assessment as part of the application process. This includes verifying your income and outgoings, reviewing your credit history, and stress testing to check whether you could manage repayments if rates rose. The outcome determines not just whether you're approved, but the maximum amount offered.

Use any indicative figure as a ceiling, not a target. Borrowing the maximum available may not be the right decision for your circumstances.

The role of a mortgage broker

A regulated, independent mortgage broker can search across multiple lenders and products on your behalf. They can help identify lenders whose criteria suit your profile, explain the costs and risks of different options, and guide you through the paperwork. Using a broker does not guarantee approval, and broker fees may apply.

When to reassess your affordability

Consider pausing or reassessing if:

• Your monthly housing costs, including mortgage, insurance, council tax, and maintenance, would leave very little financial headroom

• You would need to borrow your deposit

• You would have no accessible savings left after completing the purchase

• You are feeling pressured into buying quickly without proper research

The MoneyHelper mortgage affordability calculator is a free, government-backed tool that can help you explore your budget. It includes stress testing for rate rises and can flag scenarios where affordability looks stretched.

Additional resources

Starting your mortgage preparation at least three months before you want to buy gives you time to improve your credit profile, build savings, and address any issues that emerge.

Useful, free resources include:

• MoneyHelper – government-backed guidance on mortgages, affordability, and the homebuying process

• FCA register – check that any broker or lender you use is FCA-authorised

• Citizens Advice – free, impartial advice on housing and debt

• Own Your Home – government resource on homeownership schemes available in England

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

ClearScore is a credit broker, not a lender.

This article is for information only and does not constitute financial advice. Eligibility for any mortgage product depends on individual circumstances and lender criteria. Always seek independent financial advice before making mortgage decisions.