The first step to getting a mortgage is to complete a mortgage interview. This may be directly with a lender or with a mortgage broker (who will then liaise with lenders on your behalf).
Without a mortgage broker, if you want to shop around for a good deal, you may need to complete this interview many times with multiple lenders. But even then, you’ll likely only be able to explore a small number of the options available to you. This is one reason why almost 90% of homebuyers in the UK choose to arrange a single mortgage interview with a broker*. Your broker can then use the information to search a wide range of lenders and find the right deal for your situation from across the market.
Whether directly or via a mortgage broker, your lender will want to know a lot of information about you and the property you plan to purchase before deciding whether to make you an offer. In this guide, we’ll talk you through some of the key questions you may be asked in your mortgage interview and explain what documentation you may need to provide.
It’s not a one-way street though – we recommend you ask your mortgage broker plenty of questions as well before deciding to use them and during the process itself. To learn the best questions to ask your mortgage broker, please read our guide, ‘What Questions Should I Ask My Mortgage Broker?‘
Personal Details
Before we get into the more specific questions you might be asked in a mortgage interview, let’s quickly cover the personal details you’ll need to give (and in some cases, provide proof for).
- Full names and dates of birth of all applicants, with identification (passport or driver’s license)
- Proof of address (utility bills, bank statements, council tax bills)
- National Insurance Number
- Marital status
- Contact details
Financial Situation
Income
“What is your employment status?”
Your employment status will usually fall into one of two categories – either employed or self-employed. Although self-employed mortgage applications can be slightly more complex, you should have similar options available to you as an employed person providing you pass the lender’s affordability and credit checks. The main differences between an employed and self-employed mortgage application have to do with how you prove your income. To find out more information about self-employed mortgage applications and how to choose a suitable mortgage advisor, please read our guide, ‘Choosing a Mortgage Broker for Self-employed or Freelancers’.
“What is your annual income?”
How much you earn is of course one of the primary concerns when it comes to getting a mortgage. In fact, providing you pass other checks, lenders often use an income multiplier to decide how much you can borrow. Lenders will mostly be interested in your core income, but you may need to explain and prove all sources of income if you receive additional earnings such as bonuses, commissions, benefits, or rental income.
“Can you provide proof of income?”
Lenders will need proof of any income that you would like to include in your mortgage application. How you prove your income may differ depending on whether you’re employed or self-employed. If you’re employed, lenders may want to see payslips, P60s, bank statements, and occasionally employment contracts. If you’re self-employed, lenders may want to see tax returns, certified accounts, and bank statements.
NB. If you’re self-employed, there may be more questions regarding your business and business accounts.
Expenses
“What are your monthly outgoings?”
To get a deeper understanding of your financial situation, lenders will need to know what your monthly outgoings are. This can include household bills, travel costs, food and groceries, leisure activities, insurance policies, debt repayments and childcare costs.
“Do you have any existing debts?”
As mentioned above, lenders will want to understand how much debt you’re currently liable for, including credit cards, personal loans, and any other mortgages.
“Do you have any dependents?”
Applicants with children inherently have more outgoings, so aside from the detailed breakdown above, lenders will also want to know how many children or dependents you have.
Savings and Deposit
“How much deposit do you have?”
You’ll need to inform the lender of the size of your deposit. Typically, this will need to be at least 10% of the property value, but you may be able to get a mortgage with a 5% deposit by using a Help to Buy Scheme. Having a larger deposit reduces the risk to lenders, which may open you up to better deals.
“Where did your deposit come from?”
You’ll also need to state where the deposit has come from. This could be from personal savings, a gift from a family member, a sale of another property, equity from another property, a sale of other assets, an inheritance, or a combination of these sources.
“Do you have any other savings or assets?”
When calculating your risk profile, lenders will want to know about any other savings or assets you own. Having considerable savings or valuable assets could reduce your risk profile in the eyes of lenders. If you do have some savings, you may want to learn more about offset mortgages by reading our guide, ‘Offset Mortgages – Could You Save Money on Your Mortgage?’
Credit History
“What is your credit history?”
Lenders will want to know how responsible you’ve been in the past when it comes to paying back creditors, so be prepared to answer any credit-related questions they may have. We recommend using CheckMyFile to look at your credit score and history, and you can learn why we recommend this platform by reading our guide, ‘What is CheckMyFile and is it the Best Way to Check My Credit Score?’
“Have you ever had any credit problems?”
More specifically, lenders may ask you about any credit problems you’ve had in the past, such as late payments, defaults or CCJs. They will also conduct their own credit checks using an official credit reference agency, so be sure to answer all questions honestly.
Property Details
“What type of property are you looking to buy?”
Lenders will want to know what type of property you’re planning on purchasing. Be prepared to give sufficient detail to allow the lender to understand what type of asset they will be lending against. For example, is it a house or a flat? A new build property or an existing property? If it’s an existing property, when was it built? How many bedrooms does it have? Is it freehold or leasehold? If it’s a leasehold, you may be asked further questions regarding the lease.
“What is the value of the property?”
Lenders will need to know the value of the property so they can work out your loan-to-value ratio (LTV). You can learn what LTV is by reading our guide, ‘What Does Loan-to-Value (LTV) Mean and How Does it Affect My Mortgage Rate?’
It’s worth noting that the value of the property may be different to the asking price. For that reason, lenders will usually arrange their own independent valuation to ensure they have an accurate picture of the property’s value. It’s also recommended that you do the same using a surveyor, so you can understand the condition of the property you are buying and its true value.
Future Plans
“Do you have any plans that could affect your finances?”
Although many of the lender’s questions will revolve around your current financial situation, they also need to understand if your finances are likely to change in the future. For example, are you changing jobs soon? Do you plan to have children?
“Do you expect your income to change in the near future?”
Lenders may be more specific and drill down into your future income to ensure you’ll be able to afford the repayments long-term. If there are any plans or issues on the horizon that may change your income (for the better or worse) you may need to be upfront about them.
What Should I Bring to a Mortgage Interview?
Exactly what you’ll need to bring to a mortgage interview may depend on your situation, for example, whether you’re employed or self-employed. Some of the things you’ll likely need to bring (or send in) include identification for all applicants, proof of address, proof of income, bank statements, proof of deposit, and information about the property. Don’t worry though, you don’t need to get all this sorted before you speak with us. Our advisors can talk you through everything before the mortgage interview so you can get prepared. Simply call, email, or fill out our contact form, and we’ll get in touch to explain what documents and information we’ll need from you.
What’s the Easiest Way to Apply for a Mortgage?
As you can see from this guide, mortgage interviews can be quite comprehensive and often take around an hour to complete. It’s important to shop around to get a favourable deal, but approaching lots of lenders individually means you have to repeat the same interview process multiple times. By going it alone, you also run the risk of being rejected by a lender, which can damage your credit score and make it harder to get a mortgage the next time you apply.
The most common way of applying for a mortgage is to use an experienced mortgage broker, with almost 90% of homebuyers in the UK going down this route. This way you only have to do one mortgage interview, saving you a lot of time and hassle. Your mortgage broker will then search a wide range of deals from across the market to ensure you apply for the right deal for your circumstances – and one that you’re likely to be accepted for. Your broker will apply on your behalf, guide you through the process, and answer any questions along the way. At Michael Usher Mortgage Services, we also have a dedicated team of paraplanners who chase up your lender, estate agent and solicitor, to ensure your application and purchase are completed as quickly as possible. You can book a mortgage interview with one of our friendly advisors here.
The Bottom Line
In short, lenders will want to know all about your financial situation (especially income, outgoings and debts), your deposit, your credit history, the property you plan to buy, and your future plans. You will need to provide proof and written documentation for many of these areas as well.
Mortgage interviews can be daunting, but using a mortgage broker can make the process much less stressful. You’ll only have to complete the interview once and your advisor will gather all the necessary documents and information needed to find and apply for the right deal.
We hope that after reading this guide, you feel more confident embarking on your mortgage journey. And remember, if you want to continue educating yourself and getting prepared, please also read our guide, ‘What Questions Should I Ask My Mortgage Broker?‘
At Michael Usher Mortgage Services, we’ve been helping people throughout Surrey, Hampshire and Berkshire for over 30 years! We’re not affiliated with any particular lender, so we can access a comprehensive range of mortgages from across the market to find a deal that suits your needs. We’ll guide you through the process and liaise with your lender, estate agent and solicitor to ensure your application goes as smoothly as possible. We can also help protect your mortgage with our FREE Insurance Service.
Talk to one of our friendly mortgage advisors for free to get going quickly. Our head office is on Frimley High Street, but we can also help you remotely via phone or video call if you’d prefer. We look forward to chatting with you!
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Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The precise amount will depend on your circumstances but will be agreed with you before proceeding.
