Martin Lewis has warned prospective homebuyers about three major hurdles that can prevent them from securing a mortgage.
The MoneySavingExpert founder identified affordability, the type of property being purchased and an applicant’s credit history as the main issues that can lead lenders to reject an application.
His warning comes as UK mortgage approvals edged up in June to 58,200, from 56,570 in May.
Despite the increase, the housing market remains subdued, with wider economic conditions continuing to weigh on buyers.
For people who have already had an offer accepted, a rejected mortgage application can put their purchase at risk and leave them unable to complete the transaction.
Mr Lewis said lenders do not simply assess whether a borrower can afford repayments at the rate available when they apply.
Instead, providers carry out affordability stress tests to determine whether borrowers could continue making repayments if interest rates were to rise.
Lenders can examine bank statements, income and spending habits as part of the assessment.
Mr Lewis said applicants close to their affordability limit should consider reducing discretionary spending for three to six months before applying, helping to demonstrate financial headroom.
The second hurdle relates to the property itself.
Mr Lewis said lenders have differing criteria, meaning a home acceptable to one provider may be rejected by another.
Short leases, certain new‑builds, restrictive title deeds and very small studio flats can all create difficulties. Cladding concerns and high‑rise buildings can also affect applications, depending on the lender’s policies.
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Negative findings in a structural survey may also lead to rejection if the lender has concerns about the property’s condition.
Mr Lewis warned that securing a mortgage on a difficult‑to‑finance property could create problems later, as fewer lenders may be willing to offer a new deal when the initial mortgage expires, making remortgaging more difficult.
The third factor is an applicant’s credit history, although Mr Lewis described this as the least significant of the three.
Lenders may review past debt repayments, defaults and County Court Judgments. Mr Lewis said poor credit can block an application, but strong affordability and a suitable property can mitigate some concerns.
Prospective borrowers can check their credit records before applying to identify issues that may affect a lender’s decision. Mr Lewis highlighted the MSE Credit Club, a free tool that allows users to review their credit files and identify areas needing attention.
The warning comes as mortgage approvals have risen slightly, though the market remains challenging.
Mr Lewis’s advice focuses on preparation before applying — reducing discretionary spending, checking the suitability of a property and reviewing credit records — to help avoid problems once a lender begins its assessment.
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