A Complete Guide to Mortgage Applications

Are you preparing to apply for a mortgage? If so, you’ve come to the right place. Here you will find all you need to get started with your application, including what documents you will need, a timeline of the process, and expert advice on tap.

How to prepare for a mortgage application

The first steps on your mortgage journey should be working out your budget and getting mortgage ready. Below you will find tips and tools to help you with both of these things:

Calculating your budget

There are two aspects to working out how much you can, and will need to, borrow. Firstly, you will need to establish that you have enough deposit, with the majority of mortgage lenders expecting you to have at least 5-10% of the property’s purchase price to put down.

Once you have established your deposit amount as a percentage of the total property value, you will know how much you need to borrow and can work out if it’s affordable.

The rule of thumb on mortgage lending is that you can typically borrow up to 4.5 times your annual salary (combined incomes if more than one person will be named on the mortgage). However, a smaller number of lenders will stretch to 5-6 times annual income.

You can use our affordability calculator below to work out your maximum borrowing:

Getting mortgage ready

You will want your credit record to be as strong as possible ahead of a mortgage application, so here are some tips to help you build good credit before you get started:

• Download and review your credit files: You can download them by starting a free trial with Checkmyfile. Flag up any inaccuracies or outdated information to the credit reference agencies as reporting these things can improve your credit profile.
• Pay off debt where possible: Settling any debt you’re in a position to clear can boost your credit profile and affordability, as it will be factored into your outgoings.
• Join the electoral register: Registering to vote, which you can do on the UK Government’s website, is an easy way to build credit quickly.
• Make sure all relevant bills are in your name: This is another quick win you can implement if you need to build credit history quickly, ahead of your application.

Preparing your documents

You will need to produce and prepare the following documents for a mortgage application:

• Passport or driver's licence: You’ll need valid photo ID as a starting point. Check it’s in date, and it can help avoid complications if your current address is listed.
• Utility bills: These are acceptable as proof of address, but it will need to be your most recent bill. Gas, water, electricity or any other household utility will suffice.
• Bank statements: Will also help verify your ID, address and finances. They will need to be dated within the last three months for the lender to accept them.
• Proof of income: You will need three months’ wage slips, and if you are new to your job role, your P60. If you are self-employed, you will need to provide your self-assessed tax return forms (SA302) and tax year overviews, which can be requested from HMRC. You will also need an accountant's certificate.

Consult with a mortgage broker

This is an optional, but highly recommended step in the process, especially if there is any complexity of risk factors involved, such as self-employed income or bad credit.

Our mortgage brokers are whole-of-market, meaning they have access to every lender in the UK, including exclusive ones you cannot apply to directly. They will guide you through the application process, ensure all of your paperwork is completed correctly, and match you with the lender who is best placed to offer you the most favourable rate you qualify for.

You can book in a free, no-obligation chat with one of our brokers to get the ball rolling on your mortgage application, or compare the latest rates available yourself below:

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What does the mortgage application process involve?

Below you will find a full breakdown of each stage in the mortgage application process:

Step 1 - Apply for an agreement in principle

This is the first step in the mortgage process. An agreement in principle (AiP), also known as a mortgage/decision in principle, is a non-binding arrangement between an applicant and a mortgage lender outlining how much can theoretically be borrowed, and on what terms.

Although it is no guarantee that you will be approved for a mortgage, it’s a strong indication that you can get one. An AiP can also be used as proof to house sellers that you are a serious buyer. In fact, some estate agents insist you have one to attend a viewing.

Timeframe: Our mortgage brokers can potentially secure your AiP in minutes (although more complex applications may take longer) - Get started here.

Step 2 - Make an offer on your property

Once you’ve found your dream home and have an AiP behind you, there’s nothing stopping you from tabling an offer for the property. This should be done through an estate agent.

You can make your offer over the phone but you should also put it in writing in an email. The email should include the following information for the estate agent:

• How much you are offering to pay
• Name and contact information
• Summary of your circumstances - i.e. when you can move in and whether you're in a chain

Timeframe: It can take several weeks depending on how long it takes to find a property and whether you end up in a bidding war with other potential buyers.

Step 3 - Review your case and submit your documents

If you enlist the services of our mortgage brokers, they will handle this stage for you. It’s the first formal step in the mortgage process and it involves reviewing the information on your agreement in principle and sending all of the documentation to the lender.

Your mortgage broker will review the following for you:

• Income and outgoings: Via the documents you provided to double check that you will pass the mortgage lender’s affordability assessment.
• Your offer on the property: To collate this information for the lender.
• A credit check: We will carry out a soft credit check which won’t leave any marks on your record to ensure you will pass the lender’s eligibility assessment.

Once your broker has reviewed all of the above, they will send your documents over to the mortgage lender to begin processing your full application.

Timeframe: It can take anywhere between 48 hours and a week to get your documents reviewed and for the mortgage lender to process them.

Step 4 - Appoint a solicitor

You will need a solicitor or conveyancer to handle all of the legal due diligence and officially transfer the ownership of the property over to you, once your mortgage is completed.

The duties of the solicitor/conveyance are as follows:

• Check you can afford the property and know the legal ramifications of buying it
• Ensure the property is worth what you are paying for it
• Pinpoint any structural issues or legal hurdles that could derail the deal

Appointing a solicitor is essential to close the deal between you and the seller. If you do not wish to find one yourself, we can match you with a firm we recommend, one that is on panel with all of the UK’s leading mortgage lenders and has a glistening track record.

Timeframe: The property searches they carry out can take 2-3 weeks to complete, but if any issues or questions arise from them, this timeframe can be extended.

Step 5 - Mortgage completion and contract exchange

The next step is the formal completion of your mortgage application after your solicitor has sent over the final documents required for this. It is out of your hands at this point but your lender could still back out of the agreement if anything comes up in their final checks.

If all goes through smoothly, your application should be finalised in 4-6 weeks.

This leads us to the final stage: the exchange of contracts. At this juncture, your solicitor and the seller’s solicitor agree that all of the paperwork has been completed correctly, the money will be transferred from your lender to the seller, and the property is legally yours.

Timeframe: These final steps can take 4-6 weeks to complete, but it can take a little longer for Land Registry to record your formal ownership of the property.

How long does the application process take?

On average the entire mortgage application process can take anywhere between two and six weeks. The exact amount of time it takes depends on the complexity of your application.

If, for example, you are self-employed with non-standard income, have bad credit, will be over 75 during the mortgage term or are buying an unusual type of property, this can add time onto the process as lenders and underwriters will need to complete extra checks.

Other factors that can delay mortgage completion include being in a property chain and failing to fill out and file the mortgage paperwork correctly.

You can save time by using a mortgage broker. Not only will they give you a hand with your paperwork, they will ensure you are placed with the lender who is best equipped to handle your application, however complex it might be, in the quickest timeframe possible.

The average time a mortgage application takes through a broker is roughly 2-3 weeks.

What to do if your application is declined

If you have a mortgage application rejected, first and foremost, don’t panic. Depending on what stage you reached in the application process, there could be a way to get your homeownership plans back on track quickly, without impacting your credit files.

Here are the steps to take if you have had a mortgage application rejected:

Don’t resubmit your application right away: There’s no guarantee it won’t be declined again for the same reason as before, and too many applications for finance in a short space of time can negatively impact your credit profile and set your plans further back. 

Speak to a mortgage adviser: We specialise in getting stalled mortgage applications back on track. Our expert advisers will explore whether there are grounds to renegotiate with your current lender, or find you a new one, if that's a better option.  

We’ll handle things from here: Now you can sit back while we get your mortgage application back on course. With their knowledge, experience and lender contacts, our brokers can help you revive your plans without affecting your credit files.

How we can help with your mortgage application

We provide everything you could possibly need to get started on your mortgage journey. You can compare the latest mortgage rates and deals yourself for free, and access bespoke application guidance from one of our whole-of-market mortgage brokers.

Here are just some of the reasons people choose us for their mortgage requirements:

• You can access the latest mortgage rates in seconds
• Our brokers can secure exclusive deals you won’t find elsewhere
• We are 5-star rated on leading review websites
• You can apply for an agreement in principle in minutes

Ready to compare the latest rates for free and take the first steps towards your mortgage application with an expert broker by your side? Get started here.