2026 is upon us, and if your new year’s resolution is to buy your first home or move to a bigger home because hosting at Christmas made you realise your current home isn’t big enough then this is the blog for you!
Here we will walk you through everything you need to know and to do to get ‘mortgage ready’ in 2026. We will strip this right back to basic and right to the beginning, so if you are familiar with the first few steps you can skip ahead to the ones you need know.
Check your credit file
Your credit file will determine which lenders will lend to you, as the strength of your credit file will either meet their criteria or it won’t. We put this as number one on the list as this is the most important and can take the most time to implement, so looking at it first will give you the time needed to improve your credit file before applying for a mortgage.
We recommend using checkmyfile.com as they offer the most comprehensive credit report and a free 30-day trial if you click the link below. When the 30-day free trial ends you will be charged £14 per month there after so make sure to cancel it if you no longer need it.
So, you’ve downloaded your credit file, now what? You need to check over your file to make sure everything is up to date and correct. You need to make sure that your address is up to date, if you aren’t registered at your current address lenders cannot find you and cannot check your credit status. Updating your address is a quick and easy way to improve your score, once your updated address is on your file the credit reference agency can find all your information and provide an accurate score to you and to lenders.
If you have any incorrect information on your file, such as old credit agreements that you have closed or missed payments that are incorrect you can work with those credit agencies to have those rectified which will also improve your score. If you haven’t used any credit before you may have a low credit score as you have no credit history. To build a credit history and boost your credit score you could take out a small credit card to build that up over time.
By checking your credit file, you can see all your credit agreements in one place so you can see how much you have outstanding on each agreement so you could put a plan in place to pay down some of your credit to boost your credit score and mortgage affordability. Most lenders like to see that you keep your credit card usage within 50% of the limit, so if you spot that you are over this level you can aim to pay that down before your mortgage application.
Avoid new credit
Not only does taking credit out impact your affordability but new credit applications in the run up to a mortgage application can also impact your chances of being approved for a mortgage. Any new application for credit is a hard search on your credit file and if you monitor your credit report you will notice your score reduce slightly as a result. Multiple applications for credit in a short period of time in the run up to a mortgage application can reduce your credit score which can increase the likelihood your application fails to meet lender internal credit scoring requirements. Multiple applications for credit can also be a red flag of financial difficulty to lenders too.
Closing credit agreements can also have the same effect on your score too. Nobody knows why but closing an old credit card that you no longer need can also impact your credit score. Its counter intuitive but if you have a credit card you don’t use or don’t need, keep it open but unused to keep your credit score high.
Open a Lifetime ISA (LISA)
If 2026 is the year that you buy your 1st home, our biggest piece of advice that we can give you (if you haven’t already done this) is to open a Lifetime ISA. Also known as a LISA, is an individual savings account that will allow you to save up to £4,000 per year and the government will give you a 25% bonus an anything you save that year up to £4,000. Effectively turning £4,000 into £5,000.
No other savings account is going to give you a 25% boost on your savings so maximise this account before saving into any other savings account to supercharge your savings. If you are fortunate enough to save more than £4,000 per year, we advise that you save into your LISA first to get the best return on your savings, and then any extra savings you have over the £4,000 per year limit put it into another high interest savings account.
Save your deposit
We advise aiming for a 10% deposit if you can (10% of your target purchase price), this will open more lending options. This is because not all lenders offer a 95% mortgage option, but 99% offer a 90% mortgage option. This will give you more lenders to choose from, give you a lower loan amount and a better interest rate on this smaller loan amount will have a big impact on your monthly repayments. Also, the bigger the deposit you can put down the more lenient the underwriting can be which should make your application faster and smoother.
The deposit is the biggest hurdle for buyers buying their first home and can take time to build up, especially if you are currently renting. If you currently own a home your deposit will be coming from the sale of your current home, so you and your adviser can calculate how much equity you have in your property after repaying your current mortgage and your moving costs (solicitor and estate agent fees).
Have a target in mind
Like when you set off in your car, you need to have a destination in mind otherwise how do you know which roads to take? We are all unique, we have different needs and want different things from a property. Before you begin to work with an adviser or view properties have a good think about what you need from a property:
Is it a house or a flat?
Does it need a big garden?
Do you want to be near amenities?
How many bedrooms do you need?
The clearer you can be when you speak to your adviser the more accurate the plan will be that they put in place for you. Once you know what you are working towards you can than set a deposit target to work towards and your adviser would know how much you need to borrow.
Also have a think about how much you can afford to spend on a mortgage each month alongside your running costs such as utilities and council tax. Your monthly budget may cap how much you can afford to borrow, as you may be able to borrow more on paper but due to the interest rate and loan size the monthly payments may fall outside of your monthly budget.
Speak to an independent mortgage adviser
Buying your first home can be one of the most daunting things you do, so you shouldn’t do it alone. Lean on an experienced expert in the field to guide you every step of the way. A good independent mortgage advisor can calculate your affordability (How much you can borrow), secure you a mortgage in principle to allow you to make offers on properties, recommend the perfect mortgage for your purchase and answer any questions you have along the way.
Collect 3 months documents
When submitting a mortgage application, you need to provide evidence of your income to the lender, for applicants in employment you will need your last 3-month payslips and last 3 months corresponding bank statements. For self employed applicants you will need your last 2 years finalised tax returns. As you prepare to speak with your adviser begin to collect these documents in a folder ready for your appointment. The more information you can give your adviser and the easier you can provide it to them the smoother your application will be.
If you are self-employed and have a tax return due, best advice is to work with your accountant to file this in time for your appointment too. Especially if you think the most recent return is going to be the best one yet as this will boost your affordability for your mortgage application.
Keep an eye on government schemes
As governments come and go so do the different schemes that are on offer. Previously we had the Help to Buy equity loan scheme which has now been replaced with the affordable housing scheme. Some schemes that are available on only new build properties and some are available on all properties, make sure you stay on top of these or ask your adviser to see which ones apply to you.
By following these steps above by the end of 2026, you will have a healthy deposit saved, a strong credit score, clean affordability evidence, a clear understanding of the costs involved, and a head start on the mortgage process. By being proactive and starting this early you have plenty of time to put these actions in to place and reap the benefits before you need to apply.
If you are a first-time buyer and would like more information on how you can get mortgage ready in 2026 follow the link below to down our FREE first-time buyer guide which gives you 12 easy steps to follow to get you mortgage ready in 12 months.
So how do you prepare financially to buy a house in 2026?
Be prepared, be proactive and contact us right away! The sooner you can seek advice and put a plan together, the sooner you can begin to take the necessary steps to achieve your goal and buy a house in 2026.
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