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From how to prepare for your mortgage application to how to boost your chances of it being accepted, we look at everything you need to know about how to get a mortgage.
Whether you’re a first time buyer or you’re buying a new home and it’s many years since you’ve applied for a mortgage, it’s a good idea to know exactly what’s involved in the process. So we look at how to get a mortgage, from what lenders will look for, to how to avoid delays and what to do to increase your chances of success.
When thinking about how much deposit you need to buy a house, typically you need a minimum 5% deposit, although it is possible to get a mortgage with no deposit. But having a larger deposit typically unlocks cheaper mortgage rates so it’s worth exploring what you can do to maximise your deposit in the run up to getting a mortgage.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
There’s other preparation you should do before making your mortgage application. In the six months before applying for a mortgage, get yourself ‘mortgage ready’ by ticking off the following actions to boost your chances of getting a mortgage:
When you apply for a mortgage, lenders will assess your household income and consider your outgoings to assess how much you can afford, and check your credit report with a credit reference agency to look at your financial history too.
Mortgage calculators are a good place to start to see how much you can afford to borrow. Our affordability calculator looks at how much you are likely to be able to borrow and afford based on your income. This mortgage cost calculator will also give you an idea of what your monthly mortgage costs are likely to be.
The mortgage rates you can access will depend on your loan to value ratio. Use our loan to value calculator to get an idea of what your LTV is likely to be.
Once you have a rough idea, it’s time to speak to a mortgage broker. The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for your individual circumstances.
There are lots of documents you’ll need to provide in the mortgage application process so start gathering them up. These may include:
You might also need to show your outgoings, including how much you’re borrowing on credit cards and other loans and general living costs such as travel, childcare and entertainment.
Next, it’s a good idea to get a mortgage in principle, sometimes called an agreement in principle (AiP) or decision in principle (DiP). It’s a statement from a lender on how much they would lend you ‘in principle’ based on information you have provided about your income and outgoings.
It’s advisable to get a mortgage in principle as early in the process as possible, ideally before you start house-hunting. You want to be seen as a serious buyer, ready to proceed, before you make your first offer.
Arrange a Mortgage Agreement in Principle today with the expert advisers at Mortgage Advice Bureau.
Once you have found a property and had an offer accepted, you can start the formal mortgage application process. Your mortgage broker can take this forward for you. The lender will carry out a full credit check, undertake a mortgage valuation of the property and once happy with your application will issue a formal mortgage offer.
Your solicitor will let your lender know once you have a date to complete your property purchase, so they can arrange to send them the money you’re borrowing.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Getting a mortgage as a first time buyer is much the same, except you’re more likely to have a smaller deposit – in turn, this means you’re more likely to need a mortgage with a higher LTV, which can be more expensive.
As a first time buyer, this will be the first time you’ve been through the mortgage process. So it’s a good idea to get an expert mortgage broker to help you. Some of the jargon can seem confusing, but an expert adviser will explain things to you in clear terms that you understand which will help you feel more in control.
You’ll usually need a deposit of at least 5% to get a mortgage, however, it is possible to get 100% mortgages.
You may also be able to get a mortgage with no deposit by taking out a Guarantor Mortgage, this is when someone, usually a parent, takes on some of the risk of the mortgage by acting as a guarantor. However, this isn’t something for the guarantor to jump into lightly as there are risks involved. Find out more in our guide Guarantor mortgages explained
Make sure the mortgage process runs as smoothly as possibly by:
Getting a mortgage on an auction property is possible but you’ll need to act quickly. You’ll only have 28 days to get the money to complete your purchase if you’re buying a house at a traditional auction.
You’ll have more time if you’re buying via the ‘modern method of auction’. If there is a delay in getting your mortgage, you can take out a bridging loan to ‘bridge the gap’ in funding. A bridging loan can also help you buy a house at auction that isn’t quite habitable so deemed un-mortgageable
It is possible to get a mortgage with bad credit, but it will depend on the type of credit issues you’ve had and how recent any issues were. There are specialist lenders who may lend to you, but these usually charge higher rates.
However, depending on your circumstances it may be that mainstream lender will lend to you. If you want to apply for a mortgage with bad credit, it’s advisable to speak to a mortgage broker because they’ll be able to assess your situation and advise you on the best route forward for you. Also, read our guide on Mortgages for bad credit.
It’s possible to get a mortgage if you’re self employed but the lending criteria can be stricter. You’ll need to have proof of your income; the standard requirement is a verified record of the past three years of earnings however some lenders may accept less. If you’re looking for a self-employed mortgage it’s a good idea to speak to a mortgage broker and they’ll be able to explain which lenders are most likely to accept your application. Find out more in our guide on Self employed mortgages.
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Your income is a crucial factor in whether your mortgage application will be accepted and if so, how much a lender will be prepared to lend to you. What’s right for you will depend on your circumstances: if your income is too low to get a mortgage on the property you want, can you buy a cheaper house? Or can you buy a property with someone else? Read our guide on Buying a home with a partner or friend: What to watch for.
And you may want to consider shared ownership, this is when you buy a share of a property (10%-75%) and pay rent on the rest. As you’re only buying a share of the property, you need a smaller mortgage. Find out more in our guide Shared ownership: What is it? Is it worth it?
There are lots of reasons that may stop you getting a mortgage including:
If you remortgage with a different lender, you’ll need to make a full mortgage application, the lender will assess your affordability and a mortgage valuation will be carried out on the property and legal work will need to be undertaken.
However, if you remortgage with your existing lender, known as a product transfer, the process is usually much simpler and quicker, providing you’re borrowing the same amount over the same term. Although, you will be restricted to the deals offered by your current lender so could end up paying more.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
As a general guide as to what you can afford to borrow, most mortgage lenders will lend up to 5 times your salary. Use our how much can I borrow calculator to get an idea of how much you may be able to borrow based on your income.
After you’ve had an offer accepted on a property and applied for a mortgage, it can typically take from two to four weeks to get a mortgage approved. However, it can take longer. For more information, read our guide on How long does it take to get a mortgage?
There isn’t a simple answer to this because each lender has its own lending criteria, so the best mortgage lender for you will depend on your personal circumstances. This is where a mortgage broker can help. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for your individual circumstances. Also, see our guide to the best mortgage lenders.
Generally speaking, no. Most lenders like to see that you’ve been with your employer for a reasonable amount of time, and other lenders may turn you down if you’re still in your probationary period. If changing jobs during a mortgage application is something you’re considering you should speak to a mortgage broker first to find out how it may affect you. For more information, read our guide to getting a mortgage with a new job.
Life insurance isn’t mandatory for a mortgage but it can give financial security to your loved ones if you die while still having a mortgage to pay off. Find our more about life insurance options when taking out a mortgage.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
HomeOwners Alliance Ltd is an Introducer Appointed Representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of LifeSearch Limited, an Appointed Representative of LifeSearch Partners Ltd, authorised and regulated by the Financial Conduct Authority. (FRN: 656479).
Independent Financial Adviser service is provided by Unbiased, who match you to a fully regulated, independent financial adviser, with no charge to you for the referral.
Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
