Mortgage lending rules
What the rules mean for you
All mortgage lenders have to abide by certain rules – see how they affect you and if we could lend to you – without affecting your credit score.
Your home may be repossessed if you do not keep up repayments on your mortgage.
How the mortgage rules affect you
The UK’s mortgage rules mean we have to check whether you could still make mortgage payments if your income falls or your monthly repayments increase because of a change in interest rates. So when you apply for a mortgage, we’ll consider your income, debts and regular spending and your personal circumstances.
You’ll need to provide documents that support what you’ve told us about your:
- Regular income from work, self-employment or pensions and investments
- Additional payments, like overtime, bonuses and commission
- Other income, like state benefits, rental income, trust funds and maintenance payments
Your debts and regular spending
We’ll consider how your current and future commitments could affect your ability to afford your mortgage repayments, including:
- Cards and overdrafts
- Credit agreements and loans
- Property commitments
- Family commitments, including maintenance
- Pension payments
We’ll also consider your circumstances today and how you think they may change in the future, including:
- A change to the interest rate you pay
- Your planned retirement age
- Additions to your household, like children or relatives you need to care for
- Unforeseen changes, like illness, accidents and divorce
- Changes to your working life, like redundancy or relocation
Take control of your credit file
Find out what can affect your credit file and how to check it before you apply.
Even if you think you’ve managed your money properly, it’s worth making sure the details agencies hold are correct. You can ask for a report and score from most credit reference agencies. There’s no industry standard for credit scores, so each agency may hold slightly different information about you.
- You can ask agencies to correct errors
- Even small errors, such as in your date of birth or address history, could make a difference to the amount you could borrow
- If you’re no longer living with a former partner or flatmate, make sure you hold no joint accounts or finances with them
- Check your finances aren’t still linked through utility bills, store cards or other commitments you’re no longer responsible for
- You can do this by completing a ‘disassociation request’ with a credit reference agency
- Remember that your credit file is just one of the things we check when you apply for a mortgage
Looking for a mortgage?
Work out your mortgage budget
See how much you could borrow and work out what your monthly payments might be with our mortgage calculators.
Mortgage Agreement in Principle
Take the first step to your mortgage with an AiP
Start an Agreement in Principle (AiP) online to find out quickly if you could borrow the amount you need – without affecting your credit score. See 'How will the information I provide be used?' below, for more details.
- Find out quickly if we're able to lend to you without a full credit check
- Don't bank with us? No problem – you can still get an AiP
Need some help?
Talk to us online
Start a web chat if you’d like to ask us a question online.
Call us1 today on 0800 197 1081. Lines are open all day, every day, except on bank holidays and during Christmas, when they may be closed at off-peak times.