There are 7 simple steps to a successful mortgage application: pre-application, applying for a decision in principle and making an offer, application, conveyancing, property survey, offer and exchange of contracts to completion.
Mortgage Application Guide
Applying for a mortgage doesn’t need to be daunting. Most people just don’t know what to expect. In this guide, we’ll take you through the mortgage application process, explain the key stages and help you understand your options.
What's the mortgage application process?
Before applying for a mortgage, it’s important to understand your financial position and prepare the information lenders may require. Taking time to get organised can help make the mortgage application process smoother and reduce the likelihood of unnecessary delays.
Check your credit history
Mortgage lenders will review your credit history as part of their assessment. Before applying, it’s worth checking your credit reports to make sure the information recorded is accurate.
Lenders may consider factors such as missed payments, defaults, County Court Judgments (CCJs) and your overall management of credit commitments.
If you discover any incorrect information, you should contact the relevant credit reference agency to request a correction.
Having a less-than-perfect credit history doesn’t necessarily mean you cannot obtain a mortgage. Different lenders have different criteria, and some specialise in helping applicants who have experienced previous credit difficulties.
You can find more information on our Bad Credit Mortgages page.
Understand your mortgage options
When comparing mortgages, it’s helpful to understand some of the terminology lenders use.
Mortgage types
Different mortgage products offer different ways of calculating interest.
- Fixed-rate mortgages: Your interest rate remains unchanged for an agreed period, providing certainty over your monthly repayments during that time.
- Tracker mortgages: Your interest rate typically follows the Bank of England base rate, meaning your payments may increase or decrease.
- Variable-rate mortgages: Your interest rate can change, depending on the terms of the mortgage product.
Initial interest rate period
This is the period during which your introductory mortgage rate applies.
For example, you might choose a mortgage with a fixed interest rate for two or five years.
When this period ends, your mortgage will usually move onto the lender’s reversion rate unless you arrange another mortgage product.
Mortgage term
The mortgage term is the total length of time over which you agree to repay your mortgage.
Mortgage terms commonly range from 25 to 35 years, although shorter and longer terms may be available, depending on the lender and your circumstances.
A longer mortgage term can reduce your monthly repayments, but it may increase the total interest you pay over the life of the mortgage.
Monthly mortgage repayments
Your monthly repayments depend on several factors, including the amount borrowed, mortgage interest rate, repayment method and mortgage term.
With a repayment mortgage, your monthly payments cover both interest and part of the outstanding mortgage balance.
With an interest-only mortgage, your monthly payments generally cover the interest, and you’ll need an acceptable repayment strategy to repay the outstanding capital at the end of the mortgage term.
Mortgage fees and additional costs
When arranging a mortgage, there may be additional fees and expenses to consider.
These can include:
- Mortgage product or arrangement fees
- Mortgage valuation fees
- Solicitor or conveyancing fees
- Property survey costs
- Mortgage broker fees, where applicable
- Stamp Duty or the equivalent property transaction tax, where applicable
Some mortgage products offer incentives such as free valuations, cashback or reduced product fees.
The amount of Stamp Duty or other property transaction tax payable will depend on where you’re purchasing, the property price and your individual circumstances. First-time buyers may qualify for relief, subject to the relevant rules.
Our mortgage advisers will explain the costs associated with your mortgage before you proceed.
If you’re buying your first home, our First-Time Buyer Mortgages page provides further information about the mortgage options available.
Getting ready to apply
Before submitting a mortgage application, it’s worth reviewing your income, expenditure, savings and existing financial commitments.
You should also consider how much you can comfortably afford to repay each month, allowing for your regular household expenses and any potential changes in your circumstances.
At The Residential Mortgage Hub, our mortgage advisers can help you understand your borrowing options, compare suitable mortgage products and prepare for the application process.
Before you start looking for a property, it’s worth establishing how much you may be able to borrow. Obtaining a Decision in Principle can help you understand your budget and demonstrate to estate agents that you’re serious about buying.
What is a Decision in Principle (DIP)?
A Decision in Principle (DIP), sometimes called an Agreement in Principle (AIP) or Mortgage in Principle, is an initial indication from a mortgage lender of how much they may be prepared to lend you.
The lender will assess basic information about your income, financial commitments and credit history to determine whether you meet their initial lending criteria.
Depending on the lender, this may involve a soft or hard credit search. Your mortgage adviser will explain which type of search applies before proceeding.
A Decision in Principle is not a guaranteed mortgage offer. Final approval will depend on a full mortgage application, satisfactory underwriting checks and an acceptable property valuation.
Why should you obtain a Decision in Principle?
Having a Decision in Principle before viewing properties can provide several benefits:
- Understand your budget: Get an indication of how much you may be able to borrow.
- Strengthen your position: Demonstrate to estate agents and sellers that you’ve taken steps towards arranging your mortgage.
- Identify potential issues: Highlight possible lending restrictions before you make an offer.
- Save time: Focus your property search on homes that are more likely to fall within your borrowing capacity.
At The Residential Mortgage Hub, our mortgage advisers can assess your circumstances and help you obtain a suitable Decision in Principle.
If you’re purchasing your first property, our First-Time Buyer Guide provides further information about preparing for your first mortgage.
Finding the right property
Once you understand your potential borrowing capacity, you can begin searching for a suitable property.
When considering a purchase, it’s important to look beyond the asking price and consider factors such as the property’s location, condition, ongoing maintenance costs and potential future resale value.
You should also consider whether the property is suitable for mortgage lending, as some lenders have restrictions relating to certain property types or construction methods.
Making an offer on a property
Once you’ve found a property you’d like to purchase, the next step is to make an offer.
In England, Wales and Northern Ireland, offers are commonly submitted through an estate agent, although private sales are also possible.
The seller can accept, reject or negotiate your offer. If your offer is accepted, the property is generally described as being sold subject to contract.
In England and Wales, an accepted offer is not normally legally binding until contracts are exchanged.
In Scotland, the buying process is different. Offers are normally submitted through a solicitor, and the purchase becomes legally binding when missives are concluded.
What happens after your offer is accepted?
Once your offer has been accepted, you can move forward with your full mortgage application.
Your mortgage adviser will confirm the details of the property, review the mortgage products available and recommend a suitable option based on your circumstances.
The lender will then assess your full application, including your income, financial commitments, credit history and the property being purchased.
Once your offer on a property has been accepted, the next stage is to submit your full mortgage application.
Your mortgage adviser will review your circumstances, confirm the property details and recommend a suitable mortgage product based on your requirements.
At The Residential Mortgage Hub, we help manage the application process, liaising with the lender and keeping you informed of progress.
What happens when you submit a mortgage application?
When your mortgage application is submitted, the lender will carry out a detailed assessment to determine whether you meet their lending criteria.
This typically involves reviewing:
- Income and employment: Confirming your earnings and employment status.
- Affordability: Assessing your income, expenditure and existing financial commitments.
- Credit history: Reviewing how you’ve managed credit and financial commitments.
- Deposit: Verifying the amount and source of your deposit, where applicable.
- Property details: Ensuring the property meets the lender’s mortgage requirements.
The lender may request additional information or documentation during the assessment.
Your mortgage adviser will liaise with the lender throughout this process and help you respond to any additional requirements.
What documents will the lender need?
The documentation required will depend on your circumstances and the lender’s criteria.
Common requirements include:
- Recent payslips and bank statements.
- Proof of identity and address.
- Evidence of your deposit, where applicable.
- Details of existing financial commitments.
- Tax calculations, tax year overviews or company accounts if you’re self-employed.
Some lenders may request additional evidence, especially where income is more complex.
If you’re self-employed, a contractor or company director, our Self-Employed Mortgages page explains how lenders may assess your income.
How does the mortgage valuation work?
As part of the mortgage application process, the lender will normally arrange a valuation of the property.
The purpose of this valuation is to confirm that the property provides suitable security for the mortgage and that its value supports the amount being borrowed.
Depending on the lender and mortgage product, the valuation may involve:
- A physical inspection of the property.
- A desktop valuation using available property information.
- An automated valuation based on property data.
A mortgage valuation is carried out for the lender’s benefit and should not be confused with an independent property survey.
If the lender values the property below the agreed purchase price, you may need to renegotiate with the seller, increase your deposit or explore alternative mortgage options.
Are there any mortgage application or valuation fees?
Some mortgage products have application, arrangement or valuation fees, while others may offer free standard valuations or other incentives.
The fees payable will depend on the lender and mortgage product selected.
Where a valuation fee applies, it may need to be paid when the full mortgage application is submitted.
Your mortgage adviser will explain any applicable fees and when they are payable before proceeding.
How do lenders assess mortgage affordability?
Mortgage lenders must establish that the mortgage is affordable based on your financial circumstances.
They will generally assess your income alongside regular expenditure, existing credit commitments and other financial responsibilities.
Depending on the mortgage product and applicable lending rules, lenders may also consider your ability to afford repayments if interest rates increase.
Different lenders have different affordability criteria, which means the amount you can borrow may vary between lenders.
Our mortgage advisers can help identify suitable lenders based on your individual circumstances.
How long does a mortgage application take?
The mortgage application process typically takes 2 to 3 weeks from submission to receiving a formal mortgage offer, although timescales can vary depending on the lender and your individual circumstances.
Straightforward applications may be approved sooner, while more complex cases can take longer.
Factors that can affect the timescale include:
- The lender’s current processing times.
- How quickly supporting documents are provided.
- Whether additional underwriting checks are required.
- The type of property being purchased.
- Whether the property valuation identifies any concerns.
At The Residential Mortgage Hub, we’ll monitor your application, liaise with the lender and keep you informed throughout the process.
Once the lender has completed its assessment and is satisfied with your application and property valuation, it can issue a formal mortgage offer.
Once your offer has been accepted and your mortgage application is progressing, you’ll need to appoint a solicitor or licensed conveyancer to handle the legal aspects of purchasing your property.
Conveyancing is the legal process of transferring ownership of a property from the seller to the buyer. Your conveyancer will carry out the necessary legal checks, review the property information and manage the transfer of funds.
What does a conveyancing solicitor do?
Your solicitor or conveyancer will manage the legal work involved in your property purchase.
Their responsibilities typically include:
- Property searches: Arranging searches with the local authority and other relevant organisations to identify potential issues affecting the property.
- Contract reviews: Checking the contract and supporting documents provided by the seller’s solicitor.
- Title checks: Confirming the seller’s ownership and identifying any restrictions or legal issues affecting the property.
- Mortgage requirements: Ensuring the lender’s legal requirements are satisfied.
- Enquiries: Raising questions about the property and reviewing the seller’s responses.
- Exchange of contracts: Managing the legal process when you commit to the purchase.
- Completion: Arranging the transfer of purchase funds and registering your ownership after completion.
When should you appoint a conveyancer?
It’s generally advisable to appoint a solicitor or conveyancer once you’ve had an offer accepted on a property.
You may also wish to obtain conveyancing quotations earlier so that you’re ready to proceed when you find a suitable home.
If you’re purchasing with a mortgage, your solicitor or conveyancer must usually be accepted by your chosen lender.
Using a conveyancer who isn’t on the lender’s approved panel could result in additional costs or delays.
What property searches are carried out?
Your conveyancer will normally arrange searches to identify matters that could affect the property.
These may include:
- Local authority searches: Information about planning permissions, building regulations, road schemes and other local matters.
- Environmental searches: Identifying potential environmental risks, such as flooding or contaminated land.
- Water and drainage searches: Establishing whether the property is connected to public water and drainage systems.
- Additional searches: Depending on the property’s location and circumstances, further searches may be recommended or required.
The searches needed will depend on the property, its location and the lender’s requirements.
What happens during conveyancing?
Once instructed, your conveyancer will obtain the contract documentation from the seller’s solicitor and begin the necessary legal checks.
They will review the title documents, arrange searches and raise enquiries about the property.
If you’re buying a leasehold property, additional checks will normally be required, including reviewing the lease, service charges, ground rent and management arrangements.
Your conveyancer will also review your mortgage offer and ensure the lender’s requirements are satisfied before exchange of contracts.
How long does conveyancing take?
The conveyancing process typically takes between 6 and 18 weeks, although timescales can vary depending on the property, the circumstances of the transaction and whether there is a property chain.
Straightforward purchases with no chain may complete towards the shorter end of this timescale, while more complex transactions, including leasehold properties or purchases involving longer chains, may take considerably longer.
Factors that can affect the timescale include:
- Delays in receiving property searches.
- Outstanding enquiries with the seller’s solicitor.
- Leasehold management information.
- Issues with the property’s legal title.
- Delays elsewhere in the property chain.
- Mortgage offer conditions or additional lender requirements.
Your solicitor or conveyancer will keep you informed throughout the process and advise you of any issues that could affect your expected completion date.
What is the difference between exchange and completion?
Exchange of contracts
In England and Wales, exchange of contracts is normally the point at which the buyer and seller become legally committed to the transaction.
A completion date is agreed, and withdrawing after exchange can have serious financial consequences.
Completion
Completion is when the remaining purchase funds are transferred to the seller’s solicitor and ownership is transferred.
Once completion has been confirmed, you can normally collect the keys and move into your new home.
Your conveyancer will also deal with any applicable Stamp Duty Land Tax and register your ownership with HM Land Registry.
The legal process differs in Scotland and Northern Ireland, so your conveyancer will explain the arrangements relevant to your purchase.
How does your mortgage adviser help during conveyancing?
Although your solicitor handles the legal aspects of your purchase, your mortgage adviser remains available to assist with mortgage-related matters.
At The Residential Mortgage Hub, we can liaise with your lender and conveyancer where necessary, help resolve mortgage-related queries and keep you informed as your purchase progresses.
Our aim is to help ensure your mortgage arrangements are ready for completion.
When buying a property, it’s important to understand its condition before committing to the purchase.
Although your mortgage lender will normally arrange a valuation, this is primarily for the lender’s benefit and is not the same as an independent property survey.
Arranging your own survey can help identify potential problems, unexpected repair costs or structural concerns before you become legally committed to buying the property.
What is a property survey?
A property survey is an independent assessment of a property’s condition, carried out by a qualified surveyor.
Depending on the type of survey selected, it can identify issues such as damp, structural defects, roofing problems and other areas that may require repair or further investigation.
A survey can provide reassurance about the property’s condition and help you make an informed decision about your purchase.
What is the difference between a mortgage valuation and a property survey?
Mortgage valuation
A mortgage valuation is arranged by the lender to establish whether the property provides suitable security for the mortgage.
Depending on the lender and property, this may involve a physical inspection, desktop valuation or automated valuation.
A mortgage valuation is not designed to provide a detailed assessment of the property’s condition.
Independent property survey
An independent property survey is arranged for your benefit as the buyer.
It provides information about the property’s condition, potential defects and any repairs or maintenance that may be required.
For more detailed information, visit our House Survey Guide.
What types of property surveys are available?
The Royal Institution of Chartered Surveyors (RICS) offers three main levels of Home Survey.
RICS Home Survey Level 1
A Level 1 survey provides a basic assessment of the property’s condition and highlights visible defects or issues requiring attention.
It is generally suitable for newer, conventionally constructed properties that appear to be in reasonable condition.
RICS Home Survey Level 2
A Level 2 survey provides a more detailed assessment of the property’s condition, identifying defects and offering advice about repairs and maintenance.
It is commonly suitable for conventional houses, flats and bungalows in reasonable condition.
This was previously commonly known as a HomeBuyer Report.
RICS Home Survey Level 3
A Level 3 survey is the most comprehensive of the three RICS Home Surveys.
It provides a detailed assessment of the property’s construction and condition, including visible defects, potential problems and recommended repairs.
This level may be more suitable for older properties, unusual buildings, properties in poor condition or homes requiring significant renovation.
It was previously commonly known as a Building Survey.
When should you arrange a property survey?
Most buyers arrange their independent property survey once their offer on a property has been accepted.
The survey can normally take place while your mortgage application and conveyancing are progressing.
It’s advisable to review the survey findings before exchanging contracts, as this is normally the point at which a property purchase becomes legally binding in England and Wales.
If significant problems are identified, you may wish to obtain further specialist advice, request quotations for repairs or discuss the findings with your solicitor before proceeding.
How long does a property survey take?
A property survey can typically be arranged and completed within 1 to 2 weeks, although timescales vary depending on the property’s location, the type of survey required and surveyor availability.
The physical inspection itself may take a few hours, depending on the size and condition of the property.
More detailed surveys, such as a RICS Home Survey Level 3, may take longer to complete, and additional time may be required for the surveyor to prepare the written report.
If the survey identifies any significant concerns, further investigations or specialist reports may be recommended before proceeding with the purchase.
What happens if the property survey identifies a problem?
It’s relatively common for a property survey to identify issues, especially when purchasing an older home.
Not every problem means you should withdraw from the purchase.
Depending on the findings, you may wish to:
- Obtain quotations for necessary repairs.
- Arrange further specialist inspections.
- Discuss the findings with your solicitor.
- Negotiate the purchase price with the seller.
- Consider whether the property remains suitable for your requirements.
If the survey identifies an issue that could affect the property’s suitability for mortgage lending, you should inform your mortgage adviser.
At The Residential Mortgage Hub, we can help explain any potential mortgage implications and liaise with your lender where necessary.
Are property surveys different in Scotland?
In Scotland, sellers are generally required to provide a Home Report when marketing a residential property, although some exceptions apply.
The Home Report normally includes a Single Survey, an Energy Performance Certificate and a Property Questionnaire.
Buyers should review this information carefully before submitting an offer.
Your solicitor can explain the Scottish property purchasing process and advise whether any additional investigations are required.
Once your lender has completed its assessment of your mortgage application and is satisfied with the property valuation, it can issue a formal mortgage offer.
Receiving your mortgage offer is an important milestone in the home-buying process, as it confirms that the lender has agreed to provide the mortgage, subject to the terms and conditions outlined in the offer.
At The Residential Mortgage Hub, your mortgage adviser will review the offer with you and explain any important conditions before you proceed.
What is a formal mortgage offer?
A formal mortgage offer is a document issued by your lender confirming the terms of the mortgage they have agreed to provide.
Your mortgage offer will typically include:
- Mortgage amount: The total amount the lender has agreed to lend.
- Interest rate: The interest rate applicable to your mortgage product.
- Mortgage term: The period over which the mortgage is to be repaid.
- Monthly repayments: Details of your expected monthly mortgage payments.
- Mortgage fees: Any applicable product, arrangement or other fees.
- Special conditions: Any additional requirements that must be satisfied before the mortgage can complete.
- Offer expiry date: The date by which the mortgage offer must normally be used.
Your solicitor or conveyancer will also receive the relevant mortgage documentation and ensure the lender’s legal requirements are satisfied.
How long is a mortgage offer valid?
Most mortgage offers are valid for approximately 3 to 6 months, although this varies depending on the lender, mortgage product and type of application.
Some lenders may offer shorter or longer validity periods.
If your property purchase is delayed, your mortgage adviser can discuss whether the lender will consider extending your existing offer.
Mortgage offer extensions are subject to the lender’s criteria and may require updated financial information, additional checks or a new valuation.
If your offer expires, you may need to submit a new mortgage application, and the interest rates and products available could have changed.
Do you have to accept your mortgage offer immediately?
For most regulated residential mortgages, lenders must provide a reflection period of at least 7 days when issuing a binding mortgage offer.
This gives you time to review the mortgage terms and consider whether the offer meets your requirements.
However, you do not have to wait until the end of the reflection period to proceed.
You can choose to accept your mortgage offer during this period, allowing your purchase to progress without unnecessary delays.
Your mortgage adviser will explain the terms of your offer and answer any questions you may have.
When do you pay your mortgage fees?
Depending on the lender and mortgage product, you may need to pay certain fees during the application process or before completion.
Common arrangements include:
- Upfront payment: Some fees may be payable when submitting your mortgage application.
- Payment on offer: Certain fees may become payable once your mortgage offer has been issued.
- Adding fees to the mortgage: Some lenders allow eligible product fees to be added to the mortgage balance.
- Deduction on completion: Some lenders deduct applicable fees from the mortgage funds released to your solicitor.
Adding fees to your mortgage can increase the amount borrowed and the total interest payable over the mortgage term.
Your mortgage adviser will explain the available payment options and any applicable costs before you proceed.
What happens after receiving your mortgage offer?
Once your mortgage offer has been issued, your solicitor or conveyancer will continue working towards exchange of contracts and completion.
Before proceeding, your solicitor will normally need to confirm that:
- All necessary property searches and legal enquiries have been completed.
- The lender’s mortgage conditions have been satisfied.
- Your deposit and any additional purchase funds are available.
- All relevant legal documents have been reviewed and signed.
- Any outstanding issues affecting the property have been resolved.
Your mortgage adviser will remain available to assist with mortgage-related queries and liaise with the lender where necessary.
Can a mortgage offer be withdrawn?
Although receiving a formal mortgage offer is an important step, there are circumstances in which a lender may withdraw or amend an offer.
These may include:
- Significant changes to your financial circumstances.
- Loss of employment or a substantial reduction in income.
- New borrowing or additional financial commitments.
- Changes affecting the property’s suitability as mortgage security.
- Incorrect or misleading information provided during the application.
- Failure to satisfy the lender’s mortgage offer conditions.
It’s important to inform your mortgage adviser if your circumstances change before completion.
At The Residential Mortgage Hub, we’ll help you understand the implications of any changes and discuss the available options where necessary.
How long does it take to receive a mortgage offer?
The mortgage application process typically takes 2 to 3 weeks from submission to receiving a formal mortgage offer, although this can vary depending on the lender, the complexity of your application and the property being purchased.
Some straightforward applications may be approved sooner, while others may take longer if additional documentation, underwriting checks or property assessments are required.
Your mortgage adviser will monitor your application, liaise with the lender and keep you informed throughout the process.
Once your formal mortgage offer has been issued and the necessary legal work is completed, you’ll be ready to move towards exchanging contracts and completing your property purchase.
The final stage of buying a property involves exchanging contracts, agreeing a completion date and arranging the transfer of funds so you can collect the keys to your new home.
By this stage, your mortgage offer should be in place, and your solicitor or conveyancer will be working to ensure all legal requirements have been satisfied.
At The Residential Mortgage Hub, we’ll continue to assist with mortgage-related matters and liaise with your lender where necessary to help your purchase progress towards completion.
What happens before exchanging contracts?
Before exchanging contracts, your solicitor or conveyancer will need to confirm that the necessary legal checks have been completed.
These typically include:
- Reviewing the property’s legal title and contract documentation.
- Completing property searches and resolving outstanding enquiries.
- Confirming that your formal mortgage offer is in place.
- Ensuring any mortgage offer conditions have been satisfied.
- Confirming that your deposit and other required funds are available.
- Agreeing a suitable completion date with the seller.
If you’re involved in a property chain, the other buyers and sellers will normally need to be ready to proceed before contracts can be exchanged.
What does exchanging contracts mean?
In England and Wales, exchange of contracts is the point at which the buyer and seller become legally committed to the property transaction.
Your solicitor will exchange signed contracts with the seller’s solicitor, and a completion date will be agreed.
At this stage, you will normally be required to pay an exchange deposit, often 10% of the purchase price, although a different amount may be agreed.
Once contracts have been exchanged, withdrawing from the purchase can have serious financial consequences, including the potential loss of your deposit and additional costs.
The legal process differs in Scotland and Northern Ireland, and your solicitor will explain when the purchase becomes legally binding.
Do you need buildings insurance before exchanging contracts?
If you’re purchasing a freehold property in England or Wales, you’ll normally need buildings insurance in place from exchange of contracts, unless your solicitor advises otherwise.
This is because the risk of damage to the property may pass to you at exchange, depending on the contract terms.
Your mortgage lender will also normally require suitable buildings insurance to protect the property.
If you’re purchasing a leasehold property, buildings insurance may already be arranged through the freeholder or management company.
Your solicitor will confirm the insurance arrangements required for your purchase.
You can find more information about protecting your home on our Buildings and Contents Insurance page.
How long does it take from exchange to completion?
The period between exchange of contracts and completion is commonly around 1 to 2 weeks, although this can vary depending on the circumstances of the transaction.
Some purchases may exchange and complete on the same day, while others may have a longer period between the two stages.
The completion date is agreed between the buyer and seller, taking into account the requirements of everyone involved in the property chain.
Your solicitor will confirm the arrangements and ensure the necessary funds and documentation are in place.
What happens on completion day?
Completion is the day you officially become the owner of your new home.
Your solicitor or conveyancer will arrange for the purchase funds, including your mortgage advance and any remaining deposit, to be transferred to the seller’s solicitor.
Once the seller’s solicitor confirms receipt of the required funds and completion has taken place, the estate agent can normally release the keys.
You can then begin moving into your new property.
Your solicitor will also deal with the relevant property transaction tax requirements and arrange for your ownership to be registered with the appropriate land registration authority.
When does your first mortgage payment start?
Your first mortgage payment will normally be collected after completion, although the exact date will depend on your lender’s arrangements.
Your first payment may be higher than your usual monthly repayment because it can include interest covering the period between completion and your first regular payment date.
Your lender will confirm the amount and collection date.
At The Residential Mortgage Hub, we’ll help you understand your mortgage payment arrangements and answer any questions you have following completion.
What happens after you’ve moved into your new home?
Once you’ve completed your purchase, it’s important to keep your mortgage arrangements under review.
You should ensure your mortgage payments are set up correctly, maintain appropriate property insurance and notify your lender of any relevant changes in circumstances.
As your initial fixed-rate or tracker period approaches its end, you may also wish to review your mortgage options.
Our Remortgage page explains how reviewing your mortgage could help you find a suitable deal when your existing product ends.
At The Residential Mortgage Hub, our service doesn’t end when you collect your keys. We’re here to help with your future mortgage needs, whether you’re reviewing your existing mortgage, moving home or considering additional borrowing.
How long does a mortgage application take?
The mortgage application process typically takes 2 to 3 weeks from submitting your application to receiving a formal mortgage offer. However, timescales can vary depending on the lender, your individual circumstances and whether additional checks are required.
At The Residential Mortgage Hub, we’ll manage your mortgage application, liaise with the lender and keep you updated throughout the process.
What is an Agreement in Principle (AIP)?
An Agreement in Principle (AIP), also known as a Decision in Principle (DIP) or Mortgage in Principle, is an initial indication from a mortgage lender of how much they may be prepared to lend you based on your financial circumstances.
As part of this process, the lender will typically assess your income, financial commitments and credit history. Depending on the lender, this may involve a soft or hard credit search to establish whether you meet their initial lending criteria.
Obtaining an Agreement in Principle is an important step before making an offer on a property.
Estate agents will often ask to see an Agreement in Principle when you submit an offer, as it provides reassurance that a mortgage lender has carried out an initial assessment of your borrowing eligibility.
Having an AIP in place can offer several advantages:
- Demonstrates you’re a serious buyer: Shows estate agents and sellers that you’ve taken steps towards securing a mortgage.
- Confirms your potential borrowing capacity: Helps establish how much you may be able to borrow before committing to a property.
- Strengthens your position when making an offer: Provides reassurance that a lender has initially assessed your circumstances.
- Helps you progress more quickly: Having an AIP arranged can make it easier to move forward with your full mortgage application once your offer has been accepted.
- Identifies potential issues early: Allows your mortgage adviser to investigate any initial lending concerns before you find a property.
Although an Agreement in Principle is an encouraging first step, it is not a guaranteed mortgage offer. Final approval remains subject to a full mortgage application, satisfactory underwriting checks and an acceptable property valuation.
At The Residential Mortgage Hub, our mortgage advisers can assess your circumstances, identify suitable lenders and help you obtain an Agreement in Principle, so you’re better prepared when you find the right property.
Mortgage Requirements
When applying for a mortgage, lenders will assess your financial circumstances, income, credit history and the property you intend to purchase. Understanding what lenders require can help you prepare your application and avoid unnecessary delays.
How much deposit do you need for a mortgage?
Most mortgage lenders require a deposit, typically starting from 5% of the property’s purchase price. However, some lenders now offer 100% mortgages, allowing eligible buyers to purchase a property without a deposit.
The amount of deposit required will depend on your individual circumstances, the lender’s criteria and the mortgage products available. Generally, a larger deposit can provide access to a wider range of mortgage products and potentially more competitive interest rates.
Even if you qualify for a 100% mortgage, you may still need funds to cover additional costs, such as solicitor fees, surveys and moving expenses.
You can find more information about deposit requirements, gifted deposits and how much you may need to save in our Mortgage Deposit Guide.
If you’re buying your first property, our First-Time Buyer Guide explains the mortgage options available, including mortgages that may not require a deposit.
What documents do you need for a mortgage application?
Mortgage lenders require documentation to verify your identity, income, financial commitments and ability to repay the mortgage.
Depending on your employment status and circumstances, you may need to provide:
- Proof of identity: A valid passport or driving licence.
- Proof of address: A recent utility bill, bank statement or other acceptable document.
- Proof of income: Recent payslips, typically covering the last three months.
- Bank statements: Usually the latest three months, showing your income and expenditure.
- Self-employed income evidence: Tax calculations, tax year overviews or company accounts, depending on the lender.
- Deposit evidence: Confirmation of where your deposit is coming from, including gifted deposit documentation where applicable.
Your mortgage adviser will explain which documents are required based on your circumstances and the lender’s criteria.
If you’re self-employed, a company director or a contractor, you can learn more about how lenders assess your income on our Self-Employed Mortgages page.
How do lenders assess mortgage affordability?
Mortgage lenders need to establish that you can afford your monthly mortgage repayments, both now and in the future.
As part of their affordability assessment, lenders will typically consider:
- Your employment status and income.
- Your regular household expenditure.
- Existing loans, credit cards and other financial commitments.
- Childcare costs and other ongoing expenses.
- Your credit history, including missed payments or defaults.
- The mortgage amount, repayment term and interest rate.
Lenders may also assess whether you could continue to afford your mortgage payments if interest rates were to increase.
At The Residential Mortgage Hub, our mortgage advisers can assess your circumstances and help you explore suitable mortgage options from a wide range of lenders, including options for first-time buyers, self-employed applicants and those with more complex income arrangements.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
There is no fee for initial mortgage advice before application. A fee may be payable if you decide to proceed, depending on your individual circumstances. Any fee will be discussed and agreed with you before you proceed.