Skip to content Accesskeys Newsroom

Mortgage application process

Once you know roughly how much you want to borrow and have identified your preferred lender, there are key steps to follow to get a mortgage. These are the same whether you're borrowing for the first time or changing lender.

Key steps in the mortgage application process

If you understand the application process you can be ready with everything the lender needs. This can help speed up your mortgage application.

Get a decision in principle

You can get a decision in principle (DIP) from a lender even before you've chosen your final property. This shows whether they're prepared to lend to you and how much. The decision is based on information you give about:

  • your income
  • your employment status
  • the sort of property you want to buy

Most lenders can give you a decision in principle online as well as through the post. (DIPs trigger a credit check, which show on your credit record. Too many may affect your chances of getting a mortgage so only ask for one when you've settled on your lender.)

Never be tempted to overstate your income. You could end up with a mortgage your can't afford.

Choose a solicitor

You'll need someone to carry out the legal side of things - local searches, drawing up contracts and other legal paperwork. You could use a conveyancing solicitor or or even do part of it yourself (but make sure you know exactly what you're taking on). Some lenders have preferred solicitors, or you may be able to get a personal recommendation. You can also search online or in the phone book. (The lender will insist on a professional conveyancer to carry out the valuation.)

Make a full mortgage application

When you've decided to buy a property, you make a full mortgage application by completing and returning the lender's form (you can sometimes do this over the phone). They'll usually also want to see evidence of your income, your identity, your current address and (where relevant) a previous lender or landlord's reference. They may also want a non-refundable fee to cover their costs and perhaps to pay for a valuation.

If you can't prove you've got a regular income (maybe because you're self-employed and don't have enough accounts) you may be able to get a self-certification mortgage. This requires a larger deposit as you often won't be able to borrow more than 75 to 85 per cent of the property's value. The lender may still want some evidence of your ability to pay.

Reference checks

Your lender may get written references from your employer and bank (or accountant if you're self-employed) and your current lender or landlord. They'll also run credit checks to make sure you've paid off your debts in the past.

Property valuation

Your lender will usually have the property valued to make sure it's worth the price you've agreed to pay. If it's not, it could affect how much they'll lend you. It's advisable to get your own survey done too or to upgrade the lender's valuation survey to a more detailed one.

The mortgage offer

If the lender is happy with the valuation and references, you'll be made a formal offer - usually sent to you and your solicitor. Once you (or your solicitor on your behalf) have signed and returned the offer documents, your lender is committed to providing the money. The mortgage offer usually requires you to take out buildings insurance, in case something happens to the property before you've paid off the mortgage.

Exchange and completion

If you're buying, once you've got a formal mortgage offer, your solicitor can agree a date for exchanging contracts with the seller's solicitor. At this time you usually pay a percentage of the purchase price as a non-refundable deposit and commit to paying the rest on the agreed completion date (when the property becomes yours).

Applying for a mortgage online

You may be able to apply for your mortgage and track its progress online. If you got your decision in principle online, the main application form will usually have your key details filled in already.

More useful links

In this section

See also...