Mortgages: the right broker
Lending is not one market. The lender that will happily take a self-employed applicant may refuse the flat above a shop. The one that likes the flat may not touch a satisfied default from four years ago. Getting to the right broker matters more than most people realise.
Do you give mortgage advice?
No. House Smart Property Group is not a lender and not a mortgage broker, and we do not give mortgage advice of any kind. We cannot recommend a lender, a product or a rate, and nothing on this page is a recommendation. What we do is understand your circumstances and introduce you to an authorised broker whose experience fits them. All advice comes from that firm, not from us.
Where things usually get complicated
Why it matters
"Computer says no" usually means "this computer says no"
A decline from one lender is not a verdict on you. It is one lender's criteria, applied to one set of facts, on one day. There are dozens of lenders in the UK, many of them intermediary-only — they do not deal with the public at all and you cannot reach them without a broker. Their criteria are frequently where unusual cases get placed.
Differ enormously between lenders
One lender wants three years of accounts, another considers one. One ignores a small satisfied default, another declines it. Neither is wrong — they are different businesses with different appetites.
Some lenders you cannot reach yourself
Intermediary-only lenders deal exclusively through brokers. They are often the ones who consider complex income, adverse credit or unusual property.
Brokers are not interchangeable
A broker who mostly places straightforward employed applicants may rarely see a contractor buying a timber-framed house. Matching the case to the specialism is usually what decides it.
The awkward questions
Will a lender lend on this?
Below are the situations that most often turn a straightforward application into a difficult one. None of this is advice and none of it is a promise — every lender sets its own criteria and they change constantly. It is here so you know what to raise with a broker at the first conversation rather than discovering it after a valuation.
The property
Insulation in the roof
One of the most common current causes of a decline. Positions vary widely — some lenders refuse outright, some consider it with a satisfactory inspection, some distinguish open-cell from closed-cell. Where it has been removed, evidence of removal and a roof timber inspection are usually wanted.
Non-standard construction
Concrete prefabs, steel frame, timber frame, single-skin, cob and thatch. Some lenders decline by construction type outright; others consider specific designated types, sometimes with a structural engineer's report.
High-rise and external wall systems
Blocks above certain heights may require external wall documentation before a lender will proceed. Requirements have shifted repeatedly, so current lender positions need checking rather than assuming.
Short lease terms
Lenders set minimum unexpired lease terms, commonly requiring a substantial number of years to remain at the end of the mortgage term. A lease shorter than that can stop an application even where everything else is fine.
Flats above shops
What is below matters. Many lenders take a different view of a flat above a quiet office than one above a takeaway or a licensed premises, and some decline commercial adjacency altogether.
Former council flats and houses
Frequently fine, but some lenders apply restrictions on block height, deck access, or the proportion of privately owned flats in the block.
Invasive plants
Usually a question of proximity and whether there is a treatment plan with an insurance-backed guarantee. Some lenders proceed with one in place; others decline within a set distance regardless.
Multiple kitchens or self-contained units
A property with an annexe or a second kitchen can be treated as two dwellings by some lenders, which changes the product entirely — and occasionally the stamp duty position.
Uninhabitable or unmortgageable
No functioning kitchen or bathroom, serious structural movement or severe damp can make a property unmortgageable on a standard residential product. Bridging and refurbishment finance exist for these cases and are a different market.
Your income
Sole traders and partnerships
Some lenders want three years of accounts, some two, and some will consider one. Where trading has grown, some use the latest year and others average two or three — which can change the borrowing figure substantially.
Salary, dividends and retained profit
Some lenders assess salary plus dividends only. Others will use salary plus retained profit in the business, which for a director who leaves money in the company can produce a very different result.
Day rate and fixed-term contracts
Some lenders assess contractors on an annualised day rate rather than accounts, which often works in the applicant's favour. Others treat contracting as self-employment and want accounts.
Bonus, commission and overtime
Lenders differ on how much variable income they count — some take 100 per cent of an averaged figure, some 50 per cent, some none. On a commission-heavy income this can be the whole difference.
Irregular and gig work
Not automatically a barrier. Lenders generally look for a track record in the same line of work, and treat length of history very differently from one another.
Universal Credit, tax credits and disability benefits
Some lenders count certain benefit income towards affordability and others do not. Which benefits are accepted, and at what proportion, varies considerably.
Lending into retirement
Maximum age at the end of the term varies widely, and pension income is assessed differently between lenders. Retirement interest-only and later-life products are a separate market.
Visas and right to reside
Visa type, time remaining and length of UK residence all affect which lenders will consider an application. Some require indefinite leave to remain; others will lend on certain visa categories.
Recently started or about to start
Some lenders want three or six months in a role; others will accept a signed contract before the first payslip, particularly where the applicant has stayed in the same profession.
Your credit
Registered defaults
Age, value and whether it has been satisfied all matter. Some lenders decline any default within six years; others disregard small satisfied defaults after twelve months.
County court judgments
Treated similarly to defaults but generally more seriously. Satisfied CCJs are viewed differently from outstanding ones, and how long ago it was registered is usually the deciding factor.
Arrears on credit or a mortgage
Recent mortgage arrears are viewed more seriously than a missed mobile phone payment. Most lenders look at the last twelve to twenty-four months most closely.
Debt management plans
Whether the plan is active or settled changes which lenders will consider it. Specialist lenders exist for applicants in an active plan.
Bankruptcy and IVAs
Time since discharge is what matters most. Some lenders require six years from discharge, others three, and a small number less than that.
Little or no credit history
Having never borrowed can be as awkward as having borrowed badly, because there is nothing to assess. Being on the electoral roll and holding some form of credit history usually helps.
When the valuation comes in low
A down-valuation is not necessarily the end of the purchase
Survey issues and down-valuations are the biggest single cause of failed sales, at 37.5%. A lender will lend against the lower figure — so either the price moves or the buyer covers the difference. Before assuming the sale is dead, there are usually a few things left to try.
Challenge it with evidence. Comparable sales submitted through the broker can and do overturn valuations.
Get the defect properly costed. A specialist report often shows a flagged problem to be a fraction of what was assumed — and a real figure is easier to negotiate with than a caveat.
Renegotiate on evidence. A costed report gives a defensible basis for a price conversation rather than a guess.
Consider a different lender. Lenders instruct different valuers, and different valuers reach different figures on the same property.
Ask what the lender actually needs. Sometimes a retention is lifted by evidence of works rather than a price change.
Tell your conveyancer early. Your solicitor may need to raise enquiries off the back of it.
A specialist report can help get a flagged defect properly costed, and your conveyancer may need to raise enquiries off the back of a down-valuation — tell them early.
What we actually do
We do the matching. The broker does the advising.
- 1
You tell us the situation
Property type, how you are paid, anything on your credit file, and where you are up to. No credit check and no application at this stage.
- 2
We work out what it needs
Whether this is a straightforward high-street case or one that needs a broker who places complex income, adverse credit or unusual property.
- 3
We introduce you
To an authorised broker whose experience fits. We tell you in writing if we receive a fee. You are under no obligation to use them.
- 4
They take it from there
All advice, all recommendations and all regulated activity sit with that firm. We stay in the background keeping the rest of your move moving.
Before the first appointment
What a broker will ask you for
Having this together before you start removes one of the most common causes of delay.
Photo ID and proof of address. Passport or driving licence, plus a recent utility bill or bank statement.
Three months of payslips and bank statements if you are employed.
Two to three years of accounts or SA302s with matching tax year overviews if you are self-employed.
Evidence of your deposit and where it came from — savings, a gift, or a property sale.
Details of existing credit loans, cards, car finance, student loan, and any childcare or maintenance commitments.
Anything awkward, said early. A default from 2022 disclosed at the first conversation is a criteria question. Discovered at underwriting, it is a declined application.
Common questions
Mortgages, answered plainly
General information only. None of the answers below is mortgage advice or a recommendation.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
House Smart Property Group is not a lender and is not a mortgage broker. We do not provide mortgage advice, we do not arrange mortgage contracts, and we do not recommend lenders, products or rates. Everything on this page is general information about how mortgage lending criteria differ between lenders. It is not advice, it is not a recommendation, and it should not be relied on as either.
All mortgage advice is provided by the authorised firm we introduce you to. That firm is responsible for the advice it gives and for the regulated activity it carries out. You are under no obligation to use any firm we introduce you to, and you are free to approach any broker or lender directly.
Lending criteria are set by individual lenders, vary considerably between them and change frequently. Nothing here should be taken as an indication that any lender will or will not lend in any particular set of circumstances.
Where an introduction results in a completed case, we may receive a fee from the broker firm. We will tell you the position in writing before you proceed.
Tell us your situation
Property type, how you are paid, anything on your credit file. No credit check, no application, no advice from us — just a conversation, and then an introduction to a broker who works with cases like yours.
Your home may be repossessed if you do not keep up repayments on your mortgage. House Smart Property Group is not a lender or a mortgage broker and does not give mortgage advice.