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Author: Carl Shave-Director
Updated on January 30th, 2024

How does the mortgage application process work?

Step 1: Make Contact

The entire mortgage process begins with that initial point of contact. This can sometimes be the most frightening of all the steps, possibly owing to the unknown.

For many, this is uncharted ground, and figuring out where to begin might be difficult. You’ve already made the first step by reading this, so why not contact one of our helpful advisers? Please call us, on 0330 0945876. Alternatively, you can submit your inquiry online by completing our contact form.

Step 2: Pre-Qualification

You’ve taken the first step, which is fantastic. So, what comes next? One of our expert consultants will examine your case in further depth with you and advise you on any extra information / documentation needed to do a complete market search.

We’ll do a fact-finding exercise with you and talk about particular parts of your own situation. Things like:

  • Income and spending. This will allow the consultant to determine your budget and potential affordability for the mortgage amount necessary.
  • Amount of deposit or equity. Your adviser will outline how this may impact which lenders are accessible to you and, as a result, what interest rates are available to you. The larger the deposit or equity, the more possibilities and maybe better ones are available.
  • Your credit history. By determining your credit history, the consultant will be able to determine your prospects of success and, as a result, which lenders may be available to you.
  • What you want to do. Obviously, we’ll need to know what you want to do, such as whether you want to buy or remortgage, whether you’re a first-time buyer or interested in buy-to-let. Whatever your needs are, we have a certified professional on hand to assist you.

Step 3: Suggestions

Your consultant will give advice targeted to your unique requirements after conducting a study. This will contain information on rates as well as any associated fees that may apply. Everything you need to know should be covered at this point.

If you are unable to proceed immediately, for example, because you have not yet discovered a home you desire to purchase, the actual mortgage arrangements, including which lender, will be addressed in more general terms. This is due to the fact that the market changes, and whatever lender and scheme is appropriate for you may change in the meantime. What you will have at this point is a solid understanding of what to expect when the time arrives.

Step 4: In Principle Agreement

Your adviser can help you obtain an Agreement in Principle (AIP). This is also known as a Decision in Principle and is the first step to getting a mortgage. It’s a simple way of finding out how much money you need to borrow in order to buy a property or remortgage.

An Agreement in Principle is obligation free; this means you’re not tied to a particular type of deal or lender. However, it’s worth noting that your Agreement in Principle does not guarantee a lender will approve your application.

Step 5: Application

When you are ready, your adviser will send the whole mortgage application to your preferred lender. At this point, the mortgage provider will review any supporting paperwork that has been requested. Your consultant will inform you of the papers that the lender will demand so that you may prepare them in advance.

Typically, the lender will supply your adviser with a “shopping list” of the preliminary papers required. Following a thorough review of the documents already submitted, the lender may require more documents in specific instances.

A property survey or appraisal will also be required as part of the procedure. This may include a physical assessment of the property being mortgaged, or the lender may do a drive-by inspection, or an online appraisal based on the data at their disposal.

Fill out our quick and easy Mortgage Affordability calculator below. We only require a few details to see how much you may be able to borrow.


Step 6: Make a Mortgage Offer

The official mortgage offer will be given whenever the lender is satisfied that the property provides adequate security based on the survey or assessment and they are pleased with the paperwork submitted. This certifies their readiness to lend and outlines the terms and circumstances of the mortgage requested. A copy will be emailed to you and your mortgage advisor, as well as one directly to your acting solicitor.

Once the offer is given, the lender confirms in writing that they are willing to supply the mortgage. This is subject to the solicitor’s confirmation that all legal concerns are suitable. An offer is normally good for three to six months. It may take longer on occasion, such as when a new construction product is chosen.

Step 7: Make an offer / Pre-completion

Now that your mortgage has been officially approved, your adviser will examine your potential insurance needs with you and make any suggestions and arrangements on your behalf. Some types of insurance to consider at this stage are:

  • Property insurance. For any freehold property, you will almost certainly be responsible for the property insurance. The issue with leasehold is different, and your solicitor will investigate this on your behalf. Your mortgage provider will make it a condition of the loan that you have appropriate cover in place for the duration of the loan.
  • Contents insurance protects your valuables within your house and is generally purchased in conjunction with property insurance and is sometimes known as buildings and contents insurance.
  • Life assurance, a type of insurance policy, provides a lump sum payment in the event the policyholder passes away, as long as they have met their monthly payments. This type of policy is often more expensive than life insurance, as it has higher premiums due to the fact it offers a guaranteed pay out.
  • Income protection insurance is meant to pay you a certain sum on a monthly basis if you are unable to work and, in some cases, in the event of redundancy.

Step 8: Finish

When your solicitor has completed all essential legal procedures and all parties are prepared, you may seek to schedule your actual completion date. After that, the solicitor will make the required preparations to request the monies. Typically, a lender requires 5 working days between the request for cash and the day of delivery, however this might be lowered in specific cases.

If you are remortgaging, completion will be the day your loan is transferred from your present lender to the new one, i.e., the former loan is repaid and the new loan begins. Any additional funds you raise will now be given to you. If you are buying the home, completion will signal that you are now the legal owner of the property.

The transfer of money can happen at any point during the day. Once money has been transferred to the existing owner, your solicitor will notify you and, at that point, the keys to your home should be made available to you.

Step 9: Following Completion

As part of our offer, we provide a personal mortgage review service. This means that as you approach the end of your agreement, one of our advisors will contact you to ensure your mortgage is appropriately set up and you have the most suitable product for your circumstances.

Contact us today to speak with one of our mortgage advisors.

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