In this brief guide, we discuss guaranteed mortgage approval.

What is a guaranteed mortgage approval?

A guaranteed mortgage approval is a term some mortgage lenders use to advertise their mortgage products and more recently a lot of borrowers( usually those with bad credit) are searching for guaranteed mortgage approval.

In reality, there are no guaranteed mortgage approval mortgages which are currently in the market and this would be impossible to have as the mortgage credit directive and the mortgage market review requires that the mortgage lender takes the borrower through very strict mortgage affordability checks to ensure they can afford the mortgage that they are seeking. 

If you fail the mortgage lenders mortgage affordability checks then the mortgage lender will reject you for the mortgage.

Can you get guaranteed mortgage approval with bad credit?

No, there is no such thing as bad credit guaranteed mortgage approval so if you ever hear such a thing then you should know that it doesn’t exist and no bad credit mortgage lender will offer you a guaranteed mortgage approval.

A guaranteed mortgage approval would have certainly given you certainty is a bad credit borrower but imagine after getting such a mortgage you find out that you are unable to make the monthly mortgage repayments on your mortgage and end up getting your house repossessed by the mortgage lender.

For this reason, every mortgage lender must carry out strict mortgage affordability checks to ensure the borrower can afford the monthly mortgage repayments.

If you have bad credit and you are concerned of getting a mortgage then you may want to contact a bad credit mortgage broker who can assist you in getting a mortgage rather than looking for guaranteed mortgage approvals which do not exist.

Why do people search for guaranteed mortgage approval?

People search for guaranteed mortgage approval as they see it as the best way to ensure that the mortgage ender which they are applying to will not reject them due to their bad credit but in reality, no such thing exists and the risk of getting rejected by a mortgage lender exists even for those with the best credit score.

Imagine, a mortgage lender gives someone with a good credit score a mortgage in principle they could still reject them for a mortgage for various reasons.

There is, therefore, no guaranteed mortgage approval, even for those with the best credit scores.

Some people have also confused getting a mortgage in principle as getting a guaranteed mortgage approval but in truth, their best chance is to speak with a bad credit mortgage broker who may be able to assist them in getting a bad credit mortgage.

Other things to consider

If you are looking for guaranteed mortgage approvals then you should also be wary of applying to too many mortgage lenders in a short time as this can destroy your credit score if you make too many credit applications in a short time.

Getting rejected for credit can also destroy your credit score.

Use a mortgage broker

You may want to consider using an independent bad credit mortgage broker to get a mortgage.

Bad credit mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases. This could be over 11,000 mortgage products. This may have some advantages than going directly to a mortgage lender.

A bad credit mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy or are satisfied with the mortgage offer for your remortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer. Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it, they will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

FAQs: guaranteed mortgage approval

Is the mortgage guarantee scheme still available?

Mortgage Guarantee. The Help to Buy: mortgage guarantee scheme has closed to new applications as of 31 December 2016 but you may still be able to get a mortgage with a 95% loan to value rate from a variety of high street mortgage lenders.  There are also other government schemes which you could use.

What is a guaranteed mortgage?

A guaranteed mortgage is a type of mortgage which is guaranteed by a third party such as a government, a person or an entity. If the borrower defaults on the mortgage then the mortgage lender will look to recover the outstanding mortgage balance from the entity or person who guaranteed the mortgage.

In this brief guide, we discuss guaranteed mortgage approval.

If you have any questions or comments please let us know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.


John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.