Getting mortgage-ready for 2027

Getting ready to buy your own property in the new year should really start now. Given how the system works, there are a few things to start thinking about, and it’s not all about the deposit.

Tidy up your bank statements

Make sure any bad habits that show up on your bank statements stop now, since most brokers will look 3-6 months back; some look further, but 6 months is a good rule of thumb to clean up your statements.

Lenders want to see that you manage your money responsibly. Things that can raise questions include:

• Regular gambling transactions
• Frequent use of overdrafts or unarranged borrowing
• Missed or returned direct debits
• Payday loans or high-cost short-term credit
• Lots of spending on takeaways, subscriptions or impulse purchases

You don’t need to live like a monk, but showing a steady, controlled pattern of spending makes a real difference to how your application is viewed.

Check your credit report

Your credit report is one of the first things a lender will look at. You can check it for free with the main credit reference agencies, and it’s worth doing early so there are no surprises.

Look out for:

• Incorrect addresses or personal details
• Old accounts you don’t recognise or have closed
• Missed payments, defaults or County Court Judgments (CCJs)
• Anyone financially linked to you who shouldn’t be

If you spot an error, contact the credit reference agency to get it corrected. This can take time, which is another reason to start now.

Get on the electoral roll

Being registered to vote at your current address helps lenders confirm your identity and address history. It’s quick to do, it’s free, and it can have a surprisingly positive impact on your credit profile.

Reduce your existing debts

Credit cards, car finance, personal loans and buy now pay later agreements all count towards your outgoings when a lender works out how much they’ll let you borrow. Paying down balances, or clearing smaller debts altogether, can increase your borrowing power. Try to avoid taking on any new credit in the months before you apply, as new accounts and multiple credit searches can work against you.

Build your deposit sensibly

A bigger deposit can open up better rates and more lenders, but it’s not just the amount that matters. Lenders will also want to know where it came from. Savings built up gradually in your own account are straightforward, whereas large lump sums may need extra explanation and evidence. If you’re being gifted a deposit by family, speak to your broker early so the paperwork is ready.

Don’t forget the other costs

Your deposit is only part of the picture. Remember to budget for:

• Legal fees and searches
• Stamp Duty Land Tax (where it applies)
• Valuation and survey costs
• Broker or arrangement fees
• Removal costs and furnishing your new home

It also helps to have a buffer for any unexpected costs, so that moving in isn’t a stressful experience.

Get your paperwork together

Having your documents ready will speed things up when you apply. Brokers will typically ask for:

• Proof of ID and address
• Recent payslips and your latest P60 (or tax returns and SA302s if you’re self-employed)
• Three to six months of bank statements
• Details of any existing debts or commitments

Speak to a broker early

The sooner you speak to a broker, the more time you have to fix any issues and plan your next steps. A good broker will look at your whole situation, explain what lenders are likely to want to see, and help you work out a realistic budget and timeline. There’s no harm in having that conversation months before you start house hunting, and it could save you a lot of stress later.

Start your 2027 journey today

The new year will be here before you know it, and the buyers who feel most prepared are usually the ones who started early. If you’d like to know where you stand, get in touch with the team at Hello Mortgage for a no-obligation chat about getting mortgage ready.

Email: hello@hellomortgage.co.uk

Tel: 0800 292 2557

Disclaimer: Your home may be repossessed if you do not keep up with mortgage repayments.