Martin Lewis reveals how first-time buyers can boost mortgage approval | UK News

Martin Lewis has shared ways first-time buyers can increase their chances of being accepted for a mortgage.

The money saving expert offered tips for those hoping to get on the housing ladder on last night’s The Martin Lewis Money Show Live on ITV.

Martin, who said mortgage rates had finally started to fall, explained that mortgage lenders always check a person’s credit score, so ensuring you have a good credit score is key.

Firstly check all three credit agencies – Equifax, Experian and Transunion – to see if there are any errors in your credit report. 

Go through it line by line, he said, as the smallest mistake could see you turned away from a mortgage.

‘I know people who have not got a mortgage because of an old mobile phone that was linked to the wrong address,’ he told viewers, explaining it can look like fraud.

Martin said you should ensure you’re making all payments on time, including paying off all credit cards in full every month.

This shows you can be trusted to pay off a sizeable amount of money each month.

In the time lead up to your mortgage application, minimise your other ‘credit’ applications.

It’s common that first time buyers are asked to do an ‘affordability stress test’ that calculates what a borrower can afford to pay back each month.

This will include showing evidence of what you have earnt and spent each month in the lead up to the application.

It’s therefore worth being more careful with your spending during that time to boost your chances of passing the test.

Martin recommends using a mortgage broker. They can access criteria that you can’t and find and sometimes see deals not advertised by mortgage lenders.

He explained: ‘I would try to use a mortgage broker if you can, especially if you’ve got complex scenarios like you’re self-employed, or if you live above a shop, or if you have cladding.’ 

He warned people not to pay a broker upfront – they should only receive their fee when the deal is secure.

Some brokers will earn commission from the mortgage lender, so you don’t have to pay a fee at all.

Critics of this approach say there’s a risk brokers will favour lenders that offer a higher commission.

Last week, Martin warned that thousands could be in the wrong council tax band and urged people to ‘check and challenge’ their bill.

Speaking on his ITV show, the money saving expert said many people are caught out by being in the wrong council tax band.

He explained the two important checks people should make.

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