29th July 2026
Credit expert reacts to rising mortgage approvals - what lenders are really looking at in mortgage applications today
Hi Simon,
Following this morning’s Bank of England figures showing mortgage approvals rose again in June, I thought you might be interested in some expert analysis from Checkmyfile on what the data doesn’t show: how lenders are assessing borrowers differently in today’s higher-rate market, and why many successful applicants are reaching home ownership with far more unsecured debt than previous generations.
Sam Twyford, Marketing Director and Credit Expert at Checkmyfile comments:
“The rise in mortgage approvals shouldn’t be taken as a sign that lenders have become more flexible. If anything, they’re paying closer attention to how applicants have managed their finances over the past few years, when household budgets have been under the greatest pressure.”
“Not long ago, many applicants were judged primarily on whether they had missed payments or defaulted on credit. That’s still important, but lenders now have a much longer period of financial behaviour to assess. They can see whether someone has gradually become more reliant on credit cards, used an overdraft more frequently or taken out several new forms of borrowing while trying to keep up with higher living costs. None of those things automatically rules out a mortgage, but together they help lenders assess how much financial headroom someone is likely to have.”
“We’re increasingly seeing first-time buyers reach their deposit target later than they expected. The downside is that they’ve often spent several extra years paying higher rents, absorbing rising household bills and, in some cases, relying more on unsecured borrowing while trying to save. It’s not unusual for someone to have built a healthy deposit while also carrying more outstanding credit than buyers would have a decade ago.”
“Remortgaging is now one of the clearest stress tests in the market. A move from a 2% fixed rate to something closer to 5% or 6% can push monthly payments up by hundreds of pounds. That is why lenders want to know whether those higher repayments will still leave enough room in the household budget once existing credit commitments are taken into account.”
“The increase in approvals is positive, but it doesn’t tell us how much borrowing sits alongside those mortgages. Many households are entering home ownership with credit cards, personal loans, car finance or Buy Now, Pay Later commitments that simply weren’t as common a few years ago. Looking at the mortgage on its own no longer gives the full picture of someone’s finances.”
“One of the biggest mistakes people make is leaving their credit report until they’ve already started speaking to a lender or broker. By that stage, if there’s incorrect information, a financial association that’s no longer relevant, or borrowing you weren’t aware was still being reported, you’re working against the clock. Looking at your report several months beforehand gives you time to resolve any issues before they become part of a mortgage application.”