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.

Your income

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

Your circumstances

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