5 Reasons Why Getting a Mortgage Is Difficult

Getting on the property ladder has always required careful planning, but for today’s renters and first-time buyers, the path to mortgage approval can feel especially complex. From rising living costs to detailed affordability checks, there are several reasons why the process can feel out of reach even for financially responsible applicants.

Here are five of the most common challenges facing aspiring homeowners in the UK mortgage market and how to improve your chances of success.

1. Lenders rely heavily on your credit and banking history

Before approving a mortgage, lenders carry out thorough assessments of an applicant’s financial behaviour. This includes reviewing credit scores, repayment history, and current banking activity. Even isolated issues - such as a single missed payment, reliance on overdrafts, or recent payday loans, may raise concerns about long-term affordability.

Why it presents a challenge:

Lenders interpret certain behaviours as indicators of risk, even if they appear minor or isolated to the applicant.

How to improve your chances:

• Review your credit report for any inaccuracies
• Maintain timely repayments across all credit accounts
• Avoid new credit applications or additional borrowing in the lead-up to applying

2. Raising a deposit is increasingly difficult

The rising cost of property in many parts of the UK, paired with stagnant wage growth, has made it increasingly difficult for buyers to save for a deposit. While lower-deposit options (e.g., 5%) do exist, lenders typically offer more favourable rates to those who can contribute 10% or more.

Why it presents a challenge:

Building up a deposit often means setting aside significant savings while simultaneously managing ongoing living expenses such as rent, bills, and inflation-affected goods.

How to improve your chances:

• Set a clear and realistic deposit goal
• Monitor spending habits using a budgeting tool
• Automate monthly contributions to your savings

3. Affordability assessments are more thorough than ever

Mortgage lenders don’t just look at how much you earn - they assess how you spend. This means reviewing recent bank statements to calculate what you can realistically afford, considering bills, subscriptions, childcare, travel, and any outstanding debts. A mismatch between declared budgets and actual spending may raise doubts about affordability.

Why it presents a challenge:

Applicants with sufficient income may still fail affordability checks due to high or inconsistent spending patterns.

How to improve your chances:

• Review your finances from a lender’s perspective
• Reduce non-essential expenditures in the months leading up to your application
• Ensure your financial behaviour aligns with your stated affordability

4. Fluctuating Interest Rates Affect Borrowing Capacity

Interest rates significantly impact both monthly mortgage repayments and the total amount a buyer is eligible to borrow. A mortgage in principle obtained six months ago may no longer apply under today’s lending conditions. Higher rates also make fixed-rate products more expensive, which can reduce long-term affordability.

Why it presents a challenge:

Borrowing conditions may shift rapidly, making it difficult for buyers to plan with confidence.

How to improve your chances:

• Stay informed about current interest rate trends
• Seek advice from a mortgage broker to identify suitable products

5. There’s a lack of accessible mortgage education

Many applicants begin the process without a comprehensive understanding of key terminology and requirements - such as loan-to-value (LTV), decision in principle, or debt-to-income ratio. This lack of familiarity canlead to unrealistic expectations, delays, or missed opportunities.

Why it presents a challenge:

An incomplete understanding of mortgage terms and processes increases the likelihood of costly errors or miscommunication.

How to improve your chances:

• Access educational resources from reliable sources before applying
• Use mortgage readiness tools or calculators to understand your position
• Consult with professionals who can explain complex terminology in clear language

Conclusion

Getting a mortgage is challenging for a number of reasons: financial, structural, and procedural. But understanding what lenders are looking for, and preparing early, can dramatically improve your chances.

At Keyzy, we’re committed to helping renters bridge the gap to homeownership. Whether you’re planning for the future or exploring alternative paths to owning your home, understanding the challenges of the mortgage system is the first step toward overcoming them.