10 Things People Overlook That Could Stop Them from Getting a Mortgage in 2025

1. Gaps in Employment History

Many lenders prefer applicants with consistent employment. If you've had a recent job change, a break in employment, or are on a probationary period, your application may be delayed or declined - especially if you can't show steady income over 12 months.

2. Unexplained Large Bank Deposits

Lenders are now much stricter about where your money comes from. A sudden large deposit - whether from a gift, a crypto sale or a personal loan - could raise red flags unless you provide documentation. Transparency is essential.

3. Low Credit Utilisation (Or None at All)

It might seem wise to avoid borrowing altogether, but having no credit history can harm your chances. Lenders want to see how you manage credit responsibly, so not using credit cards or loans can backfire.

4. High Levels of Unsecured Debt

Credit cards, car finance and buy-now-pay-later accounts all count towards your debt-to-income ratio. Even if you're paying them off on time, too much unsecured borrowing could make lenders nervous about your ability to afford a mortgage.

5. Being on the Electoral Roll at the Wrong Address

This is a surprisingly common issue. If your electoral roll registration doesn't match your current address, it can lower your credit score or cause verification issues. Make sure you're registered at the address where you currently live.

6. Having Financial Links to Someone with Poor Credit

If you've shared a joint account or taken out credit with a partner, family member or ex, their credit history could affect yours. Lenders may view you as financially linked; if their record is poor, it could drag yours down.

7. Failing to Declare Student Loans

Some buyers forget to mention student loans on applications, thinking they're irrelevant. But lenders factor these monthly repayments into affordability checks, so not declaring them may lead to rejection later in the process.

8. Having a Poor Credit Score from a Mobile Contract or Utility Bill

Missed payments on phone bills, broadband or energy accounts can harm your credit profile more than you might think. Lenders view all missed payments - even on small bills - as signs of financial instability.

9. Using Payday Loans (Even Once)

A payday loan on your record can be a major red flag even if you repaid it on time. Many lenders view these as a sign of financial distress, which could automatically disqualify you from certain mortgage products.

10. Applying for Credit Too Often

Multiple hard credit checks in a short time - for car finance, credit cards, or catalogue accounts - can lower your score and signal financial risk. Avoid applying for new credit in the six months before your mortgage application.

In 2025, mortgage lenders are more cautious and data-driven than ever. Even small issues in your credit history, paperwork, or finances can raise questions. To improve your chances of approval:

• Check your credit report with all major agencies (Experian, Equifax, TransUnion).
• Keep your finances stable and avoid big changes before applying.
• Gather documents early - payslips, bank statements, proof of deposit.
• Consider speaking to a mortgage broker who can guide you through lender criteria.
• For expert advice, consider working with Farrell Heyworth’s Mortgage Service, in partnership with Mortgage Advice Bureau. Our team can offer personalised mortgage guidance tailored to your needs.

By being aware of these 10 overlooked factors, you'll be in a much stronger position to secure the mortgage you need for your next move.