Applying for a mortgage can be a daunting process—especially for members of the Armed Forces who may face unique financial circumstances. Whether you’re buying your first home, moving to a new posting, or remortgaging, understanding what lenders look for can significantly improve your chances of getting approved.

In this guide, we’ll walk you through the key factors that influence mortgage approval and share practical tips to help you prepare.

What Do Mortgage Lenders Look For?

Lenders assess a range of criteria when reviewing mortgage applications. These include:

• Loan amount requested
• Deposit size
• Employment status and income
• Credit history
• Monthly outgoings
• Existing debts

When Should You Start Looking for a Mortgage?

Buying a New Home

Start early—ideally before you begin viewing properties. Speaking to a mortgage adviser in advance helps you:

• Understand how much you can borrow
• Identify any potential issues early
• Strengthen your position with a mortgage agreement in principle

Remortgaging

Begin your search at least three months before your current deal ends. Switching lenders can take time, so give yourself enough room to explore your options.

Common Reasons Mortgage Applications Are Declined

Understanding why applications are rejected can help you avoid common pitfalls:

• Poor credit history
• Excessive credit applications
• Not being on the electoral roll
• High levels of debt
• Insufficient or unstable income

How to Boost Your Mortgage Approval Odds

1. Get Your Finances in Shape

Start reviewing your finances at least 12 months before applying. Lenders want to see responsible money management.

• Reduce unnecessary spending
• Avoid large, irregular transactions
• Build up your savings

2. Manage Your Credit Responsibly

• Pay all bills and credit cards on time
• Set up direct debits to avoid missed payments
• Avoid payday loans, especially within 12 months of applying

3. Check and Improve Your Credit Report

Your credit report is a key part of the application process. Check your report with all three major agencies:

• Equifax
• Experian
• TransUnion

Look for errors, outdated financial links, or missed payments. Dispute any inaccuracies and update your information.

4. Register to Vote

Being on the electoral register helps lenders verify your identity and address. If you’re not registered, your application could be at risk.

5. Avoid New Credit Applications

Avoid applying for new credit (including mobile contracts or store cards) within six months of your mortgage application. Multiple credit checks can lower your score.

6. Increase Your Deposit

The lower your loan-to-value (LTV) ratio, the better. Even a small increase in your deposit can improve your chances and potentially secure a better interest rate.

7. Prepare Your Documents in Advance

Having your paperwork ready can speed up the process. You may need:

• Last 3 months’ payslips
• Last 3 months’ bank statements
• P60 tax form
• Proof of deposit (e.g. savings account)
• ID (passport)
• Proof of address (utility or credit card bills)
• Gift letter (if part of your deposit is a gift)

For more information on the Forces Mutual Fee-Free Mortgage Advice Service, provided by Grange Mortgages click here

After a period of economic uncertainty, the UK housing market is showing signs of recovery. With more homes available, rising buyer confidence, and improved mortgage affordability, now could be an ideal time to consider a property move.

UK Housing Market in 2025: Key Trends Driving the Recovery

More Homes for Sale, More Buyers in the Market

According to the Zoopla House Price Index (May 2025), the number of homes listed for sale has increased by 13% year-on-year. This surge in supply is giving buyers more choice and helping to breathe fresh life into the market.

• Agreed sales are up 6% compared to last year,

• Buyers are negotiating deals at around 3% below asking price
• Sellers are showing more flexibility to close deals

This is great news for Armed Forces personnel who may be relocating or looking to buy their first home.

House Prices Are Rising—But at a Manageable Pace

Nationally, house prices have grown by 1.6% over the past year, with the average UK property now valued at £268,250, according to Zoopla. This moderate growth keeps homes within reach for many buyers.

Prices vary by region:

• In Northern areas like Blackburn and Belfast there’s been around 5% price growth
• Southern coastal areas, such as Bournemouth and Brighton have seen slight price declines,  likely due to increased listings
• According to the Office for National Statistics, the average house price in West Northamptonshire reached £295,000 in March 2025, marking a 7.0% increase from March 2024. This growth aligns with the broader East Midlands region, which also saw a 7.0% rise during the same period.

Mortgage Rates Are Falling, Making Homes More Affordable

In May 2025, the Bank of England reduced the base rate to 4.25%, leading to lower mortgage rates across the board. According to Morningstar UK, the most competitive mortgages are now:

• Two-year fixed-rate mortgages: From 3.75%
• Five-year fixed-rate mortgages: From 3.83%
• As noted in the Guardian, some lenders are also relaxing affordability criteria, allowing buyers to borrow more

This is particularly beneficial for first-time buyers and second-steppers in the Armed Forces, who may be looking to move up the property ladder.

What’s the Outlook for the Rest of 2025?

Market analysts expect the positive momentum to continue:

• Zoopla forecasts a 5% increase in completed sales
• Average house prices are expected to rise by 2%
• The Times reports that UK house sales are at their highest level since the post-lockdown boom

This suggests that the current recovery is not just a short-term trend but part of a broader market rebound.

Is Now the Right Time to Move?

With more homes available, competitive mortgage rates, and steady price growth, the current market presents a unique opportunity for those looking to move.

Daniel Mumford, Managing Director at Grange Mortgages, says:
“With increased property listings, stable pricing, and improved mortgage affordability, there’s a unique window of opportunity for buyers and movers. The current market conditions are among the most favourable we’ve seen in recent years, making it an excellent time to consider your next property move.”

For more information on the Forces Mutual Fee-Free Mortgage Advice Service, provided by Grange Mortgages Click here