How to apply for a mortgage

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.