What Does the Mortgage Application Process Involve?

Your Application

The mortgage application process can be broken down into several stages:

• Speak to a Broker: A broker can provide advice on how much you can borrow, recommend lenders, and help you understand your options.

• Get an Agreement in Principle (AIP): An AIP shows how much a lender is willing to lend before formal application, giving you a better sense of your budget.

• Find Your New Home and Make an Offer: With your AIP, you can confidently make an offer on a property.

• Instruct a Solicitor: Your solicitor handles legal aspects such as title deeds, stamp duty, and property searches.

• Make a Formal Mortgage Application: Submit the necessary paperwork with the help of your broker.

• Get a Valuation: Your lender will ensure the property is worth the loan amount.

• Receive Your Formal Mortgage Offer and Move-In: Once the lender issues a formal offer and your solicitor completes the legal work, it's time to exchange contracts and set your move-in date.

Documents You’ll Need

To apply for a mortgage, you'll need to provide the following:

• Proof of income (recent payslips or self-employed accounts)

• P60 form

• Proof of ID (passport or driver’s licence)

• Proof of address (utility bill or credit card bill)

• Evidence of your deposit (savings statement or letter for gifted deposits)

• Credit reports

• Solicitor and estate agent details

For joint applications, each applicant will need to provide their own set of documents.

How a Broker Can Help

A broker can save you time and stress by:

• Finding the best Lender for your circumstances

• Reviewing your finances and recommending suitable lenders

• Managing the paperwork and liaising with lenders on your behalf

• Offering expertise in navigating complex applications (e.g., bad credit, non-standard employment)

What Do Lenders Consider When Assessing Applications?

Lenders assess several key factors:

• Income: Lenders review your earnings and stability, looking at payslips or accounts for self-employed applicants.

• Outgoings: Credit cards, loans, and living expenses are considered to assess affordability.

• Age: Some lenders have upper age limits, typically around 75, but later-life lending options exist.

• Credit History: Your credit report shows how well you’ve managed past loans. Brokers can help if you have bad credit.

• Employment Type: Freelancers, part-timers, and self-employed individuals may need specialist lenders.

• Property Type: Non-standard properties, like listed buildings or thatched-roof homes, may require specific lenders.

• Deposit Size: A larger deposit can improve your chances of approval and access to better deals.