📱 Broadband & Mobile Bills: The Hidden Cost Lenders Don’t Ignore

Lenders factor broadband and mobile contracts into affordability.
Multiple SIMs, handset finance and rolling contracts add up fast.
These bills are treated as fixed commitments, not lifestyle spending.
Reducing them can directly improve mortgage affordability.
Most households are overpaying without realising.

1. Why Lenders Care About These Bills

Broadband and mobile costs are classed as essential, recurring commitments.

That means lenders:

deduct them from your income
assume they’ll continue long-term
do not average them down

Two £60 phone contracts and £45 broadband is £165 a month — the same as a car loan to a lender.

2. Common Cost Traps

Many borrowers fall into these without noticing:

Handset finance bundled into contracts
SIMs for family members paid from one account
Out-of-contract broadband rates
Insurance add-ons still being charged
Multiple overlapping data plans

Individually small. Collectively damaging.

3. Why This Hits Affordability Hard

Mortgage affordability is tested at higher interest rates, so every fixed bill is magnified.

Reducing £80–£150 a month in telecoms costs can:

increase borrowing power
ease stress testing
improve lender confidence
create breathing room if rates rise

4. When to Review These Bills

Best time:

3–6 months before applying for a mortgage
Before bank statements are submitted
When contracts are nearing renewal

Avoid changes in the final few weeks — lenders prefer settled patterns.

5. Bigger Picture

Lower broadband and mobile costs:

improve affordability
improve cashflow
reduce financial noise on statements
support sustainable borrowing

This is exactly what lenders want to see.

Check If You Could Save

Information only: This website doesn’t provide advice. We introduce you to specialists who can help review options and provide guidance in their own regulated areas.