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How to apply for a mortgage
If you’re applying for a mortgage but don’t know where to start, you’ll find everything you need here.
From a step-by-step guide, what documents you’ll need and the top frequently asked questions around mortgage applications.
If you haven’t yet started looking for the perfect home, then there’s a couple of steps to take first before you start a mortgage application.
1. Use our mortgage calculator
This will show you how much you could borrow and what your monthly repayments may look like.
2. Get a mortgage Agreement in Principle
This tells you how much a lender may lend you. Their decision is usually based on a soft credit check and the accuracy of the information you give, so it isn’t guaranteed.
You’ll always need to go through a full mortgage application to find out if you’ll get approved for the money you need.
Step 1: Make a mortgage appointment
If you are booking a mortgage appointment, you can do it in several ways:
- At your bank – most banks have their own team of experts.
- Over the phone – you can contact many independent advisers by phone.
- By email – drop your adviser an email, they should be able to help.
- By video appointment.
- Or set aside time to apply online yourself.
If you arrange to meet your lender in person they will offer recommendations to suit your needs.
Step 2: Mortgage appointment and application
The appointment will take approximately two hours during which the full mortgage application will be filled in for you.
It would be useful to take the following documents along with you. If your adviser needs any other documents, they’ll let you know during your appointment.
- ID, such as your passport or driving licence.
- Proof of address – a bank statement or bill.
- Details of your income – usually the last three months' payslips.
The questions asked will cover:
- Monthly spending, such as utilities and travel costs.
- Other commitments or debts you’re repaying.
- Personal circumstances including any that may change, like your current job.
During the application they will also run a credit check.
Step 3: Home valuation
Your mortgage provider will need to do a valuation of the home you want to buy to make sure the house is worth as much as the sale price. This isn’t the same as a Building Survey, which looks at the condition of the house.
Step 4: Decision
When all these stages are complete the lender will give you a decision on your mortgage application which can take up to four weeks.
Getting a mortgage approved
Lenders have conditions you must meet to be accepted for a mortgage. This includes:
What if I’m refused a mortgage?
There could be several reasons you may not get a mortgage, ranging from an error on your application to a low credit score. Before you reapply, speak to a mortgage adviser to understand better why your application was refused.
Find out more about what happens when a mortgage application is declined.
Let’s look at the details
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If your lender values your home less than your agreed sale price, your application is likely to be revised.
When this happens, your lender can lower your mortgage amount to match the new value. This means you may need to speak to the seller to negotiate a price to match your new budget.
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When your lender accepts your application, you usually have a short window of time to consider the offer, known as a ‘reflection period’. During this time, you can decide not to continue with the mortgage. A mortgage offer is valid for 12 months.
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Yes. If you have outstanding debt it will be looked at, but it’s still possible to get a mortgage. Before you apply, seek advice from a mortgage adviser.
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A mortgage offer is issued when the lender has processed your application and is happy to lend you the agreed amount.
Sometimes called an ‘offer of advance’, it’s only issued when the lender has completed its credit checks, confirmed the value of the property and is ready to offer a mortgage. After a mortgage offer is given, your conveyancer can exchange contracts and complete the purchase.
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