How to Pass Mortgage Affordability Checks in 2025: What Lenders Are Looking for Now
Why Are Affordability Checks Tougher in 2025?
Affordability checks have always been a core part of the mortgage application process, but in 2025, rising interest rates and stricter regulations have made them more challenging. Lenders are now more cautious when assessing borrowers, seeking reassurance that applicants can not only meet current repayments but also manage them if rates were to rise further in future.
This more cautious approach is designed to protect both borrowers and lenders from financial strain, but it does mean that prospective homeowners must be better prepared when applying.
What Are Lenders Looking For?
Lenders want to see stable, provable income that comfortably covers your outgoings and proposed mortgage repayments. This includes salary, bonuses, or self-employed income, but only if it can be supported with documentation such as payslips, tax returns, or bank statements.
They also take a close look at your spending habits. Monthly commitments like credit card payments, car finance, childcare costs, and even digital subscriptions can all reduce your borrowing potential. A clean credit history is another key factor. Lenders are less likely to approve applicants with recent missed payments or defaults, even if their income is strong.
Another important part of the process is “stress testing.” This means lenders will calculate whether you could still afford your mortgage if interest rates increased by a few percentage points. If the answer is no, your application may be declined or the amount you can borrow could be reduced.
How Can You Improve Your Chances?
There are several ways to strengthen your mortgage application. Reducing discretionary spending in the months leading up to your application can help demonstrate financial discipline. Paying off or consolidating debts can also improve your debt-to-income ratio, which lenders use to assess how comfortably you can manage new borrowing.
Increasing your deposit, either by saving more or through help from family, can also improve your standing with lenders. A lower loan-to-value ratio typically gives you access to more competitive mortgage products. If you are self-employed, make sure your income is well documented and up to date with the latest tax filings and business accounts.
Why Mortgage Advice Matters More Than Ever
Because lenders each apply slightly different affordability criteria, finding the right match is crucial. Some are more flexible with freelancers, while others may accept a higher proportion of variable income such as commission or overtime.
At Altura Mortgage Finance, we take the time to understand your full financial picture and connect you with the lenders who are most likely to support your goals. Whether you are a first-time buyer, a self-employed applicant, or simply unsure where to start, we can help you take the next step with confidence.
