Threshold Mortgage Advice

5 things to avoid if you’re about to apply for a mortgage

Perhaps you’re saving for a mortgage or maybe you’ve done the hard work and you already have your deposit.

Either way, if you’re planning on eventually buying a property, you’ll want to avoid anything that could impact your eligibility as a borrower.

Taking out credit to furnish your new home

Don’t believe the Instagram hype, according to a survey carried out by The British Heart Foundation, 41% of first time buyers in the UK have bought second hand furniture and homewares to furnish their first property and so should you!

Rome wasn’t built in one day and you don’t need all new furniture ahead of moving in, especially if you’re still in the process of applying for a mortgage or completion.

You might not realise but creating multiple accounts with companies that allow you to buy now and pay later can have a serious affect on your credit score.

You might not think of this as a loan, especially given that so many online retailers and stores offer credit to their customers but it’s still a form of borrowing.

If you don’t need it, don’t buy it.

Applying for a loan

You might be tempted to borrow money to boost your deposit size or to fund the move but this plan can backfire.

Borrowing more puts you and the lender at risk because you’ll have a higher debt to income ratio. More debts mean that you owe more money and in the eyes of some lenders, this could affect your ability to repay your mortgage on time and in full.

If you’re concerned about your deposit size, speak to one of our advisors who can explain the alternative routes to additional borrowing including Government schemes and savings initiatives. Send them a message here.

Quitting your job

It’s a Wednesday afternoon and your coworker’s Tuna sandwich stench lingers in the air as you count down the clock. Before you quit and renounce seafood from your life for good, consider that having a gap in employment can raise red flags for many lenders who often prefer to see a consistent and dependable income.

Some lenders have strict eligibility criteria and the amount of time you have been in a job can also affect whether they can accept you as an applicant.

If you’ve recently started a new job, don’t panic as there are specialist lenders who may be able to consider your application. It may be the case that they ask for proof of employment in the form of a contract, although many lenders prefer borrowers to be passed the probation period of their contract.

Ask one of our experts about how your job and income could affect your mortgage application here.

Making large purchases

Large purchases or multiple small purchases made in the run up to applying for a mortgage can reduce your appeal as a borrower.

Lenders will want to see that you have a sufficient amount of cash available throughout the mortgage process to take care of any fees and costs that might arise. Making a large purchase or spending a lot of money ahead of taking out a large loan can seek reckless or impulsive.

It’s key that in throughout the mortgage process, you don’t give your lender any reason to question your ability to manage money and repay your mortgage.

Forgetting to pay your bills on time

Some lenders may check your credit score sporadically throughout the mortgage process, so even if your credit score has been deemed as acceptable before, it could still affect your eligibility for a mortgage if it changes.

That means that you don’t want to do anything that could potentially impact your score, such as missing your bill payments. A history of paying bills late could suggest to a lender that you don’t stick to your financial commitments and this could affect your choice of lenders and rates.

If you’ve never applied for a mortgage before it can be reassuring to have someone on your side to advise you about what to avoid if you’re applying for a mortgage.

Get in touch with us via our contact form here.

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

You are now leaving the Threshold Mortgage Advice website. We give no endorsement and accept no responsibility for the accuracy or content of any sites linked to this site.

Click ‘OK’ if you wish to proceed


You are now moving to a new site which is not regulated by the Financial Conduct Authority. We give no endorsement and accept no responsibility for the accuracy or content of any sites linked to this site.

Click ‘OK’ if you wish to proceed