Getting a mortgage isn’t always as straightforward as it might seem. Even if you’re financially prepared, certain parts of the process can cause delays or raise concerns with lenders. Some issues are easy to fix, while others may need a bit more support to work around.
As a mortgage broker in Newcastle, we help customers every day who run into obstacles they didn’t expect.
Whether you’re buying your first home, moving, or remortgaging in Newcastle, here are some of the most common hurdles you might face, and how we can help you get past them.
Credit History
Your credit history plays a major role in how lenders assess your mortgage application. It gives them an overview of how you’ve managed credit in the past and helps them decide whether they’re comfortable lending to you.
A lower credit score doesn’t always mean a decline, but it can affect the deals you qualify for and how much you’re able to borrow.
Poor Credit Score
A low credit score may limit your access to certain lenders or reduce the amount you’re offered. Some lenders have minimum score thresholds, while others look more closely at the details behind the number.
We work with mortgage lenders who are open to considering applicants with less-than-perfect credit.
Missed Payments, Defaults or CCJs
If you’ve had missed payments, defaulted on credit agreements or had County Court Judgments (CCJs), this can raise concerns with some lenders. Whether it affects your mortgage offer depends on how long ago the issue occurred and how much was owed.
Getting a mortgage with bad credit in Newcastle is still possible, but it often means working with a specialist lender who takes a more flexible view.
If the issue was minor or has been resolved for some time, there may still be good options available.
Debt Management Plans or IVAs
Having a debt solution in place such as a Debt Management Plan or Individual Voluntary Arrangement (IVA) can make it very difficult to get a mortgage.
Lenders will want to see a consistent repayment history and may ask for additional documents. In some cases, you may need to wait until the plan has been completed.
Limited or No Credit History
Some people struggle not because of poor credit, but because they don’t have much credit history at all. If you’ve never borrowed before or have avoided credit cards and loans, lenders may find it harder to assess your reliability.
In these cases, it’s often about finding a lender that takes a more flexible approach to assessing risk.
Affordability and Commitments
Before approving your mortgage in Newcastle, lenders look closely at your income and outgoings to assess whether the repayments are affordable.
It’s not just about how much you earn, it’s also about what you already spend. Even with a strong income, certain commitments can reduce the amount you’re able to borrow.
High Childcare Costs
Childcare is a significant expense for many families, and some lenders take it into account when assessing affordability.
While it’s rare for childcare costs to block an application entirely, they can lead to a reduced borrowing amount. Some lenders take a more flexible view than others, which is why lender choice matters.
Credit Commitments
If you already have loans, car finance or regular credit card payments, lenders will factor these into their calculations.
Even if your monthly repayments are manageable, they still reduce the amount you can borrow. Some lenders are more relaxed about credit use than others, particularly if your payments are well managed.
Overdraft or Credit Card Reliance
Regularly dipping into your overdraft or making minimum payments on credit cards may be seen as a sign of financial pressure.
Lenders prefer to see some breathing room in your bank statements. If this applies to you, we may advise waiting a few months or reducing your balances before applying.
Maintenance or Other Financial Obligations
If you’re paying child maintenance or any other regular financial support, lenders will include this in their affordability checks.
These payments reduce your monthly disposable income, which may impact how much you can borrow.
Some lenders treat these commitments differently, so it’s worth getting advice early.
Employment and Income
Lenders want to see stable, reliable income that shows you can manage mortgage repayments over time.
That doesn’t mean you need to be in a traditional nine-to-five role, but your income type and work history can affect how your application is assessed.
Starting a New Job
If you’ve recently started a new job or have one lined up, lenders may ask for a signed contract and confirmation of your start date.
Some are happy to accept applications during a probation period, while others may wait until you’ve completed it. It depends on the lender and the wider strength of your application.
Gaps in Employment History
Occasional gaps in employment are common and not always a problem, but long or frequent gaps might raise questions.
Lenders look for consistency, so if you’ve had time out of work, it’s important to explain why and show that your current position is secure.
Self Employed or Variable Income
If you’re self-employed in Newcastle or your income changes month to month, lenders will usually want to see two years of accounts or tax returns.
Some will accept one year with strong figures, but options are more limited. We’ll help you find lenders who are comfortable with your income structure.
Zero-Hour or Short-Term Contracts
If you’re on a zero-hour contract or short-term contract, your application may still be considered. Lenders will usually want to see a track record of regular income over time.
If your income is steady and your contract has been ongoing for a while, it may not be a barrier.
Deposit & Source of Funds
Your deposit is a key part of your mortgage application, but it’s not just about how much you’ve saved, it’s also about proving where the money came from.
Lenders are required to follow strict rules around anti-money laundering, so transparency is essential.
Gifted Deposits
If a family member is giving you some or all of your deposit, this must be declared from the outset.
Lenders usually require a signed gifted deposit letter confirming the money is a gift and not a loan. Some will also ask to see the gifter’s bank statements to confirm the source.
Unexplained Cash or Large Deposits
Lenders will want to see a clear paper trail for your deposit. If you’ve recently paid in a large amount of cash or received money from multiple sources, you’ll need to show where it came from.
Cash savings with no explanation may cause delays or lead to your application being declined.
Mixing Multiple Sources
Using a mix of savings, gifts, bonuses, or equity from a previous sale is allowed, but each part must be clearly documented.
We’ll help you prepare this in advance so your application runs smoothly and meets the lender’s requirements.
Property and Legal
Sometimes the hurdle isn’t your income or credit, it’s the property itself.
Not all homes meet every lender’s criteria, especially if there are concerns about the structure, location or legal status of the property.
Non-Standard Construction
Homes built with unusual materials, such as concrete or steel frames, can be harder to mortgage. Some lenders are cautious about properties that fall outside traditional brick-and-tile construction.
Short Lease Terms
If you’re buying a leasehold property, lenders will check how many years are left on the lease. A short lease can reduce your borrowing options and may affect the property’s resale value.
Some lenders require at least 70–85 years remaining at the time of purchase.
Issues Found During a Survey
If a survey uncovers structural issues, damp or other concerns, the lender might reduce the amount they’re willing to lend or ask for repairs before the mortgage completes.
We can help you navigate this process and explain how to move forward if your lender raises any concerns.
Buying From a Family Member or Landlord
Purchasing from someone you already have a connection with, such as a relative or landlord, can be a great option, but lenders may want extra documentation to ensure the sale is genuine.
In some cases, gifted equity or reduced sale prices are involved, which also require clear paperwork.
Relationship and Life Events
Major life changes can have a big impact on your mortgage plans. Whether you’re separating from a partner or applying jointly with someone new, lenders need to be confident that the arrangements are stable and affordable.
Divorce or Separation
If you already have a mortgage with someone and are now separating, the first step is to work out what should happen with the property.
You may want to remove your name from a joint mortgage, or take over the full mortgage in your own name. This can be done, but you’ll need to show the lender that you can afford the repayments on your own.
Adding or Removing Someone From a Mortgage
Whether due to a relationship change or a new partner joining the application, adding or removing a name from the mortgage is possible, but it requires full lender approval.
They’ll assess the new setup as if it were a fresh application, checking affordability and credit history for everyone involved.
Applying With Someone Who Has a Different Financial Background
If you’re applying with someone who has a very different credit profile or income situation, it can affect how your application is assessed.
Some lenders may focus on the weaker profile, while others take a more balanced view. We’ll guide you toward lenders who can accommodate your circumstances as a pair.
Need Help Overcoming a Mortgage Hurdle?
No two mortgage applications are the same, and it’s not unusual to hit a few bumps along the way.
Whether it’s down to your income, credit history, deposit or the property itself, there’s usually a way forward with the right support.
As a mortgage broker in Newcastle, we’re here to help you navigate these challenges and find a lender that fits your situation.
If you’re unsure where to start or have been turned away before, speak to our team and we’ll guide you through your next steps.
Date Last Edited: July 31, 2025
