How do I apply for a mortgage?

All lenders follow a similar process, but the requirements can vary from lender to lender. Below is a rough guide on what normally happens when applying for a new mortgage.

It’s a good idea to speak to a mortgage broker to see if it’s likely you’ll be able get a mortgage or remortgage. A mortgage broker can do the leg work for you, by sourcing from 100’s of lenders, this should also lead to one credit check rather than multiple checks if you went from lender to lender yourself. This is helpful to know before you start house hunting or thinking about home improvements.

The mortgage broker will need to check whether you can afford a mortgage and which product you may be eligible for. They’ll need to check your:

  • Income – this is usually proved with your last 3 months’ payslips, accounts and any additional income such as benefits
  • Outgoings – including your household bill, credit cards, loans and general living costs
  • Your credit score – to find out whether you’ve had any missed payments, defaults or CCJs in the past
  • ID – such as your driving licence or passport
  • Bank statements – this can range from 1 to 3 months
  • Address details – to cover at least 3 years
  • Details about your chosen property

If you’ve found a property you wish to buy or currently own the property and wish to remortgage, then the mortgage broker can start the application process for you. This will consist of an initial decision in principle (DIP) with the chosen lender. This DIP will be the lender considering you for the loan using basic information, such as income and credit score. Once this is accepted your mortgage broker will move to a full application with the lender and eventual mortgage offer.

If you haven’t found a property yet or you just need to know the amount you can borrow, its likely a mortgage broker would complete the initial decision in principle to ensure you can get the mortgage loan you need. Then you just need to find a property or confirm the remortgage you want.

Once you have found the property you wish to buy and had an offer accepted, you can move to the full application process with the lender via the mortgage broker.

Contact us to make sure you’re getting the best deal and correct information for your situation.

This could also be an ideal point to look at which solicitor you want to use. Some lenders have a pre-approved list so it’s worth checking before you choose. A mortgage broker can usually help you with a recommended solicitor.

In summary;

  • Get a decision in principal. This will give you an idea of how much you can borrow, the lender agrees to give you a mortgage (in principal) subject to final checks and approvals.
  • Make formal application with lender. You can do this with the help of your mortgage broker, face-to-face, online or via telephone – dependant on your lender.
  • Once your application has been accepted by your lender, your solicitor will arrange for all searches and conveyancing.
  • Finally, your solicitor will arrange for the funds to be transferred and contracts to be exchanged on the day of completion.