Applying for a mortgage can be a lengthy and stressful process, which requires substantial prep work and coordination. Preparation actually begins way before you apply, from keeping your bank statements and credit record clean, to saving a large enough deposit, it’s easy to feel overwhelmed.
The good news is, rather than chaotic spreadsheets that require endless updating and reasonable knowledge of mathematical equations, modern smartphone apps can do most of this for you.
We look at the top apps to download when you’re applying for a mortgage. From those that help get your finances ‘mortgage-ready condition’ through to tools that help you earn money as you repay your loan.
Budgeting tools
When a mortgage underwriter reviews your application, they typically need to see at least three to six months worth of bank statements. While they already know how much you earn from your payslips or tax statements, they will also check through your statements to gauge your usual financial conduct. They’ll be looking for things like regular overdraft usage and gambling habits, or large regular outgoings.
Most banking apps now give you some form of monthly report on your spending patterns, alongside the more oldschool statements. However, there are a few non-bank owned apps out there that can make things a bit easier:
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Snoop: This has the capability to connect multiple bank accounts from different providers securely via open banking. If you’ve got more than one account, even with the same bank, it means looking at multiple statements to fully understand your spending habits. This acts as a sort of financial auditor, tracking where every penny goes, highlighting upcoming bills, and flagging areas where you are overspending. It has custom categories which allow you to isolate and slash non-essential luxury spending. This can be incredibly helpful in preparing ‘clean’ bank statements a few months ahead of your application
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Emma: Emma is perfect for uncovering forgotten subscriptions that have been leaving your account for months. As lenders look closely at your regular monthly outgoings, removing a £15-a-month subscription could technically help you borrow more money. It also has useful trackers that can help you to monitor savings pots, ideal for saving that crucial deposit
Credit score trackers and boosters
Your credit record plays an important role in your mortgage application. Even a single missed payment from two years ago could impact your interest rate or even lead to rejection from some lenders.
To ensure your credit report is in tip top shape by the time you make your full application (the point at which a hard credit check is made) it’s important to review it ahead of time, correct any issues, and get your debts into a better position, where possible.
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Experian: Experian is the largest credit reference agency in the UK, and their app gives you direct access to your Experian credit score. Another great feature it has is ‘Experian Boost’. This allows you to log regular payments like rent, council tax, and even Spotify subscriptions, which can potentially raise your score. A better credit score can mean more lenders will consider you, and you may have access to better rates
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ClearScore: ClearScore pulls data from Equifax, another one of the main 3 credit reference agencies in the UK. It provides you with an easy-to-digest dashboard and a tool that shows how your financial decisions impact your creditworthiness over time. It also flags errors, helping you find and fix them before a mortgage underwriter spots them
Dedicated deposit accumulators
Saving a deposit is arguably the toughest challenge for today’s prospective homeowner. Unlike most standard savings accounts, specialist savings apps use automation, behavioural psychology, and government incentives to accelerate the process.
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Moneybox: Moneybox is famous for its round-up feature. Every time you buy a coffee for £2.40, for example, the app rounds it up to the nearest pound - in this case £3.00. The other 60p is deposited straight into your savings. More importantly, Moneybox offers a Lifetime ISA (LISA), which is a government scheme to help under 40s build a first home deposit. There are also built-in calculators to show how long it will take to reach your target deposit, based on your current spending and saving habits
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Plum: Plum uses a similar AI algorithm to Moneybox to help calculate exactly how much money you can afford to save without disrupting your lifestyle. It also automatically transfers small increments into your savings pot every few days, but rather than rounding up your spends, this is based on your overall affordability over time
Do you need to download all of them?
No you don’t. In fact, you don’t need to download any of them if you don’t want to. These are tools that can help some people prepare for their mortgage application. However, some people will prefer to do manual calculations, and others may prefer to have a mortgage expert do it all for them. However, they are all free to download, and there is no harm in trying one or all of these out, once you’ve decided to become a homeowner.
That said, Even if you use them all incredibly effectively and get your finances and credit record in perfect condition, it can still be beneficial to speak to a mortgage adviser before you apply. They can make the best use of your hard work preparing by searching the whole market to find you the best possible lender and product for your circumstances.