How to apply for a mortgage
Master the mortgage application process by learning essential steps, such as what you need before applying to boost your chances of success.
Find out how you can apply for a mortgage that suits your financial circumstances and how long it will take to complete your application.
Summary
- There are different types of mortgages available, but the application process is similar for every type.
- You’ll need up-to-date, original or certified documents to apply for a mortgage.
- The average mortgage application time from submission to approval is between two and four weeks.
- A mortgage broker can help you to apply for the right type of mortgage for your circumstances.
The mortgage application process: how does it work?
The mortgage application process differs depending on the type of mortgage that you apply for.
For example, remortgages and interest-only mortgages require specific criteria to be met before they’re approved.
Regardless of which type you’re interested in when applying for a mortgage, you’ll follow similar steps:
- Speak to a mortgage broker: Consider talking to a mortgage broker about the kind of mortgage options available to you that align with your personal circumstances. You could also talk to your bank about your options.
- Gather your essential documents: Make sure you have all the information you need to successfully apply for the mortgage you want.
- Put forward your application: Once you have passed all security and credit checks, you may proceed with submitting your mortgage application.
In most cases, a mortgage broker can also make it easier to apply for a mortgage.
They can assist you in collecting the relevant documents, assessing your affordability, and recommending mortgages based on your financial circumstances.
Preparing to apply for a mortgage: what do you need?
Knowing what you need to apply for a mortgage is crucial for a successful application.
The essential documents you will need to apply include:
- Utility bills
- Payslips from the last three months
- A passport or driving license to prove your identity
- Bank statements of your current account for the last three to six months
- A statement of two to three years’ accounts if you’re self-employed - an accountant can help you with this
- A P60 form from your employer
All of this information must be up-to-date and legitimate, and you may need to provide certified copies of original documents instead of scans or copies.
Speed and legitimacy when signing a mortgage deed are all fundamental to a successful mortgage application.
You may also need to detail outgoing costs that may affect your ability to secure a mortgage, such as insurance, andother expenses, including general living costs, childcare, and entertainment.
How long does a mortgage application take?
How long a mortgage application takes can vary.
In the best-case scenario, the mortgage application process is completed within two to four weeks. The mortgage offer is then generally valid for six months.
In the worst-case scenario of administrative issues or failure to supply the necessary information, the process can last several months or require that you begin again with a new application.
Tips for applying for a mortgage
- Maintain good credit: The better your credit is, the more likely your application is to be accepted.
- Manage your debt-to-income ratio: Supplementing your debt obligations with multiple income streams or reducing your debt-to-income ratio before applying for a mortgage will make your application more appealing to lenders.
- Use a mortgage calculator: Knowing how much you can likely borrow shows banks you are prepared for a mortgage and understand your financial obligations.
- Use a guarantor: If you aren’t confident in your ability to repay a mortgage, use a guarantor to support your application.
Want to learn more about mortgages?
Preparing to apply for a mortgage can seem intimidating initially, but with access to the right resources and information, it doesn’t have to be.
Seek assistance from a professional mortgage broker to learn more and to get expert financial advice, and you’ll find the whole process becomes much simpler.