
Common Mortgage Application Pitfalls and How to Avoid Them
Applying for a mortgage can be a daunting process, filled with complexities that can lead to potential pitfalls. As a UK mortgage broker, I’ve seen many applicants stumble over common issues that can delay or even derail their mortgage approval. In this blog, we’ll explore some of these pitfalls and provide tips on how to avoid them, ensuring a smoother journey to homeownership.
1. Not Checking Your Credit Report Early
The Pitfall:
Many applicants wait until they apply for a mortgage to check their credit report. If there are errors or discrepancies, this can significantly affect your credit score and your ability to secure a mortgage.
How to Avoid:
Check your credit report well in advance—ideally, several months before you start your application. Look for errors, such as incorrect personal information or outstanding debts that don’t belong to you. If you find discrepancies, contact the credit reference agency to resolve them. Also, take steps to improve your credit score by paying down debts and ensuring all bills are paid on time.
2. Failing to Budget for Additional Costs
The Pitfall:
Many buyers focus solely on the deposit and monthly mortgage payments, overlooking additional costs like stamp duty, legal fees, and moving expenses. This can lead to financial strain or delays in the buying process.
How to Avoid:
Create a comprehensive budget that includes all potential costs associated with buying a home. These can include:
- Stamp duty
- Solicitor or conveyancer fees
- Valuation fees
- Moving costs
- Home insurance Ensure you have enough savings set aside to cover these expenses.
3. Not Providing Complete Financial Information
The Pitfall:
Incomplete or inaccurate financial information can lead to delays or even rejection of your mortgage application. Lenders need a clear picture of your financial situation to assess your affordability.
How to Avoid:
Gather all necessary documents before applying. This includes:
- Recent payslips and P60 forms
- Bank statements (usually for the last three to six months)
- Tax returns and accounts (if self-employed) Make sure all information is up to date and accurately reflects your financial status.

4. Changing Jobs Before Applying
The Pitfall:
While it’s natural to seek better job opportunities, changing jobs shortly before applying for a mortgage can raise concerns for lenders, especially if you switch to a role with lower pay or different contract terms.
How to Avoid:
If possible, avoid changing jobs until after your mortgage application is approved. If you do need to change jobs, ensure that you have a solid employment history and that the new position offers a stable income. Be prepared to provide documentation of your new salary and contract.
5. Underestimating the Importance of Saving History
The Pitfall:
Some applicants overlook the need to demonstrate a history of saving. Lenders want to see that you can manage your finances and save consistently, which reflects your ability to handle mortgage payments.
How to Avoid:
Start saving early and maintain a separate savings account for your deposit and other home-buying costs. Lenders typically look for evidence of regular saving over time. Show consistent deposits into your account, as this can strengthen your application.
6. Ignoring Lender Requirements
The Pitfall:
Each lender has specific criteria regarding income, debt-to-income ratios, and property types. Ignoring these requirements can lead to wasted applications and hard inquiries on your credit report.
How to Avoid:
Research lenders and their specific requirements before applying. Consider consulting a mortgage broker who can help you identify lenders that suit your financial profile and needs.
7. Making Large Financial Changes
The Pitfall:
Making large purchases (like a new car or expensive furniture) or taking on new debt just before applying for a mortgage can negatively impact your financial profile and increase your debt-to-income ratio.
How to Avoid:
Avoid any significant financial changes in the months leading up to your mortgage application. Focus on maintaining a stable financial situation and refrain from making large purchases that could affect your affordability.

8. Not Seeking Professional Advice
The Pitfall:
Many buyers attempt to navigate the mortgage process on their own, which can lead to misunderstandings and missed opportunities.
How to Avoid:
Consider working with the team at P&M Financial who can provide expert advice, help you understand the market, and guide you through the application process. Our brokers can also access a wider range of mortgage products that might not be available directly to you.
Applying for a mortgage doesn’t have to be a stressful experience. By being aware of these common pitfalls and taking proactive steps to avoid them, you can improve your chances of securing a mortgage that fits your needs. If you’re feeling overwhelmed or uncertain, don’t hesitate to reach out to our team for personalised advice and support or check out our other blogs for mortgage advice!.
Your journey to homeownership starts with a solid foundation—let’s build it together! Call us on 0800 634 9250 or visit https://pm-financial.co.uk for more information