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How To Submit Your Mortgage Application?

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You’ve saved up for a house deposit and are now ready to get on the housing ladder!

Getting a mortgage is a huge step towards your financial future. It is likely the biggest loan you will ever take out, so it can seem intimidating.

It is a long-term commitment that can have a big impact on your budget and long-term goals. To feel more confident, educate yourself on the mortgage process. Knowing what to expect will help you move forward.

In this article, we’ll discuss the steps you need to take to apply for a mortgage and what the process looks like.

Table of Contents

Before You Make a Mortgage Application

Let’s start with the basics: how do mortgages work? A mortgage is a loan specifically used to buy property.

You borrow a set amount from a lender, and because it is a “secured loan”, the financial institution has the right to repossess your house or property if you can’t meet the terms of your loan (i.e. you cannot repay the amount borrowed plus interest and make regular monthly payments). In other words, the house is the collateral in case you are unable to make payments.

Before you apply for a mortgage, you should have your budget in order. How much can you afford? How much house can you afford? What will you do if your income changes or life throws a curveball? Make sure you have emergency savings and have contingency plans in place.

Once you know how much you need to put down for a deposit, you can work out how much you can borrow to cover the cost of purchasing a house.

It’s important to be realistic about how much you can afford. Also, don’t forget to factor in other costs, such as surveys, lender fees, solicitor/conveyancer fees, searches, stamp duty, building and contents cover, etc.

The Mortgage Application Process UK

Applying for a mortgage is a big decision to make, so it’s important to do your research and ensure that you’re as informed as possible about the process. Before you even think about how to apply, look into the different types of mortgages available from different lenders.

Remember, though, that a ‘hard credit check‘ will be conducted when you submit your application, which will affect your credit score. Make sure you’re confident that you’ve found the right fit before submitting your application.

A good mortgage broker can search the whole of the market to find you the best deal.

How To Submit Your Mortgage Application
Keep in mind that when you apply, the lender will perform a hard credit check, which will affect your credit score.

Get Your Documents Organised

An important step in the process of obtaining a mortgage is to make sure you have all the necessary documents. It is essential to be prepared with:

  • Proof of identity, such as a driver’s license or passport.
  • Proof of address, which can include utility bills, bank statements, or council tax bill
  • Bank and credit card statements.
  • Proof of employment.

Having all the necessary paperwork is essential.

Secure Your Mortgage Agreement In Principle

Getting a mortgage in principle means that the lender has agreed to potentially provide you with a loan to purchase a property, based on your credit score. It’s a sign that you’re a serious buyer and, if all goes to plan, you’ll have the funds necessary to complete the transaction.

An agreement in principle (AIP) helps to demonstrate to sellers that you’re a genuine contender, which can be beneficial when it comes to negotiations. It also lets you establish a firm budget so you can concentrate on finding properties within your price range.

Some people refer to AIPs as ‘mortgage offers’. In a way, they are offers – but it’s not a guarantee that you’ll be approved.

It’s just a positive sign that you’ll qualify, provided your financial situation doesn’t change. How long do mortgage offers last? They’re valid for six months. If that period ends before you find a property, you’ll need to get a new AIP.

Once you’ve got your AIP, you can start searching for a house in earnest. Make sure to focus on homes that are within your budget to save yourself time and energy.

Apply for a Mortgage

Wait, didn’t you already apply for a mortgage? You have completed the initial steps. Remember, the AIP is not a final mortgage.

When you have found the house you want to buy and your offer has been accepted, you need to apply formally for a mortgage. Be prepared for more paperwork!

What do I need for a mortgage application
If you want to get a mortgage, make sure your documents are ready in advance to avoid any delays.

What do I need for a mortgage?

You’ll need to provide evidence of your identity, address and funds to your lender. They want to make sure that you have enough financial resources (such as a steady income, gifted money or other assets) to be considered a ‘good risk’ for a mortgage. This data will be double-checked by an underwriter.

If you want to get a mortgage, make sure your documents are ready in advance to avoid any delays.

The next logical question is: how long does it take to get a mortgage offer? The answer is that it depends on the underwriting process and the checks conducted. It also depends on the value of the property you want to buy. It must be worth the price you’re asking for.

Depending on the outcome of your credit checks, the lender will finalise the interest rate and other terms.

What is formal mortgage offer?

In simple terms, it’s a formal agreement from a mortgage provider to lend you the money for buying a home. The lender has received your mortgage application, completed all necessary checks, and is confident to give you a mortgage offer.

How long does a mortgage application take?

It depends on your circumstances. Getting an offer may take up to four weeks, but:

  1. This can be extended if there are issues with the property’s valuation;
  2. If you do not provide the correct paperwork, if more information is required;
  3. If your application is complex
  4. Or if your lender is busier than usual.

It is important to remember that once you have accepted your mortgage offer, you can instruct a conveyancer or solicitor to help you with the house-buying process.

You will need to pay a deposit to them and be ready to exchange contracts. However, nothing is certain until contracts are exchanged, and both buyers and sellers want the process to go as smoothly as possible.

UK mortgage lenders also do final checks before completion. Before you reach completion, your solicitor will check that all of your mortgage conditions have been met and request funds from your lender.

The lender will also perform checks to make sure your credit rating and/or income hasn’t changed significantly.

Once contracts are exchanged, the sale is binding. Neither you nor the seller can back out.

How do I qualify for a mortgage UK?
When applying for a mortgage, you will be required to provide proof of identity, address, and funds. Lenders require a 20% deposit from buyers.

How do I qualify for a mortgage UK?

The mortgage application process can be daunting and seem complicated. However, it is important to think of it as a journey with steps in place to ensure your safety and protection.

Have your budget and documentation in good order before you begin the process. This will give you more confidence as you move forward.

In the UK, the mortgage process is similar to other countries. When applying for a mortgage, you will be required to provide proof of identity, address, and funds. Lenders require a 20% deposit from buyers.

This varies; past homeowners may need to provide a 5-10% deposit, and first-time buyers may need to provide a 15% deposit.

This shows lenders that you are a good candidate for a large loan and will also reduce the amount of your mortgage principal and the subsequent interest.

Now that you have a better understanding of how mortgages work, you can do your research and apply for a mortgage, either online or in person, with a reliable lender.

Learn More

In this article, we have gone over the basics of mortgages and the process involved.  If you have any additional questions, it’s best to consult a qualified mortgage broker.

You can also get free assistance from sources such as Citizens Advice or your bank. 

Educate yourself as much as possible about the mortgage application process.  It’ll make the process much smoother for you. This is an exciting time in your life – make the most of it!

If you know anyone looking to sell, send them to us!

If your Mum and Dad are looking to sell to help you on the property, we can help.

Are they looking to sell their house? We buy houses in any condition. Put them in touch with us.

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