For many tenants, becoming a homeowner can appear to be a distant ambition. Rising property prices, deposit requirements and uncertainty about mortgage affordability can make it difficult to know whether buying is realistic.

However, tenants should not assume that they need a perfect credit record, an exceptionally large deposit or the highest income before beginning the conversation.

Mortgage lenders take different approaches to income, expenditure, credit history and deposit size. Preparing early can help you understand what may be possible, identify problems and avoid finding your ideal property before knowing whether you can finance it.

Here are the main areas to review before making a mortgage application.

1. How much deposit have you saved?

The deposit is often the biggest obstacle facing a first-time buyer.

A larger deposit can reduce the proportion of the property’s value that needs to be borrowed. This may give the buyer access to a wider range of lenders or more competitive mortgage products. However, buyers with smaller deposits may still have options.

Your deposit might come from:

• Personal savings.
• A Lifetime ISA or other savings account.
• A gift from a family member.
• An inheritance.
• The sale of another asset.
• A combination of acceptable sources.

Lenders and solicitors will normally require evidence showing where the deposit originated. If money is being gifted, the person providing it may need to confirm that it is a genuine gift rather than an undisclosed loan.

Do not use every available pound as the deposit. Buyers may also need money for legal work, surveys, mortgage fees, moving costs, insurance and initial repairs or furnishings.

2. What can you afford each month?

Paying rent successfully does not automatically mean a lender will approve a mortgage with the same monthly payment.

Mortgage affordability assessments consider more than the proposed mortgage instalment. A lender may examine:

• Basic salary and other regular income.
• Overtime, commission and bonuses.
• Self-employed or company income.
• Loans, credit cards and vehicle finance.
• Childcare and maintenance commitments.
• Household bills and regular expenditure.
• The proposed mortgage term.
• The effect of potential future interest-rate increases.

The amount offered by one lender may differ significantly from another because lenders use different affordability models.

It is also important to make your own assessment. The maximum mortgage available is not necessarily the amount you should borrow. Homeowners must be able to manage repairs, insurance and unexpected expenditure as well as the monthly mortgage.

3. Have you checked your credit records?

Your credit history helps lenders understand how you have managed financial commitments.

Before applying, obtain your records from the main credit-reference agencies and check that the information is accurate. Make sure your address history is correct and look for accounts you no longer recognise or errors that need to be challenged.

Missed payments, defaults or other historic difficulties do not always make a mortgage impossible. Their effect may depend on:

• How recently the problem occurred.
• The amount involved.
• Whether it has been repaid or settled.
• The circumstances behind it.
• Your financial conduct since then.
• The criteria of the lender being approached.

Avoid making several speculative mortgage applications. Too many applications over a short period may create additional concerns and still fail to identify a suitable lender.

4. Are your documents ready?

Mortgage applications can be delayed when important documents are missing, inconsistent or out of date.

Employed applicants may be asked for:

• Recent payslips.
• Bank statements.
• A P60.
• Evidence of bonuses, commission or overtime.
• Proof of identity and address.
• Evidence of the deposit.

Self-employed applicants may need accounts, tax calculations, tax-year overviews and business bank statements. Company directors may also need to explain salary, dividends and retained profits.

The name and address used on bank accounts, identification and other records should be consistent wherever possible. Differences are not necessarily a problem, but they may need to be explained.

Preparing documents before viewing properties can make the eventual application much smoother.

5. What do your bank statements show?

Lenders may use bank statements to verify income and understand regular financial commitments.

The objective is not to expect a prospective buyer to live without spending money. However, unexplained payments, persistent unauthorised overdraft use, undisclosed borrowing or financial commitments that were omitted from the application may raise questions.

If you are regularly spending more than you receive, it may be sensible to review your budget before applying. Reducing unnecessary commitments can improve your financial resilience, although paying off borrowing does not automatically guarantee that a lender will offer more.

Speak to a mortgage professional before moving savings or repaying large commitments solely to influence an application.

6. Do you have a decision in principle?

A decision in principle—sometimes called an agreement in principle—gives an initial indication of how much a lender might be prepared to offer.

It can help you:

• Establish a more realistic property budget.
• Demonstrate to an estate agent that you have begun preparing.
• Identify possible affordability or credit issues.
• Avoid viewing properties far outside your likely borrowing range.

It is not a mortgage offer or a guarantee. The lender will still need to verify the information supplied, assess the property and complete its underwriting checks.

A decision in principle should therefore be treated as an important preparation stage, not final approval.

7. Have you allowed for the complete cost of buying?

The deposit is only one part of the cost.

Depending on the transaction, a buyer may also need to budget for:

• Solicitor or conveyancer fees.
• Searches and registration costs.
• A survey.
• Mortgage valuation and product fees.
• Buildings insurance.
• Removal costs.
• Taxes where applicable.
• Repairs, maintenance and initial household expenses.

Understanding these costs early reduces the risk of reaching the later stages of a purchase without enough money to complete it comfortably.

8. Avoid major financial changes during the application

Once the mortgage process has begun, try to avoid taking out significant new credit or making unexplained changes to your finances.

A new loan, vehicle-finance agreement or large credit-card balance could alter affordability. A change of employment may also require the lender to reassess the application.

If your circumstances do change, disclose this promptly. It is much better to address the situation properly than allow the lender to discover information that was not provided.

Start the mortgage conversation before finding the property

You do not need to know everything about mortgages before asking for help. That is the purpose of obtaining professional advice.

NetRent Mortgage Solutions works with DNA Financial Solutions to provide access to independent mortgage and finance advice for tenants, first-time buyers, homeowners, landlords and other borrowers.

By reviewing your deposit, income, credit history and likely affordability before you begin viewing properties, you can approach the market with a clearer budget and a stronger understanding of the available options.

To discuss your plans, call 01352 721300 or email mortgages@netrent.co.uk.

NetRent does not provide legal advice. The content above represents our understanding of mortgage-market practice and property law as at 14 August 2026. Mortgage products, interest rates and lender criteria can change without notice. Individual circumstances vary, and appropriate professional advice should be obtained before making any financial, legal or tax decision.

Your home may be repossessed if you do not keep up repayments on your mortgage.