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Whether you're applying for your first mortgage or remortgaging, here's what you need to know about the questions you will be asked for your mortgage application and what to expect in terms of the mortgage application process.
Since the Mortgage Market Review, lenders need to do thorough checks to ensure that a mortgage will be affordable, not only now but in the future when rates may be higher. As a result, you can expect to be asked detailed budget questions for your mortgage application.
Borrowers should expect questions not only about their income but also their outgoings when applying for a mortgage. That goes beyond other credit commitments like personal loans and credit card balances into a more detailed budget planner.
Top tip It pays to break down your monthly spending patterns so you have a clear picture of where your money goes.
Lenders will ask about central items of committed expenditure. That will mean breaking down spending on items like utilities, food, council tax, travel costs and insurances. Other points that can have a significant bearing on how much you can borrow are the number of dependants, childcare costs and, in some cases, pension contributions.
Many lenders will use statistical data to cut down on the level of detail they need. They will make assumptions about what expenditure they expect a borrower with your profile to have.
Lenders will also be checking your credit rating. See our tips for improving your credit score.
Before submitting your mortgage application, it’s often worth getting a Mortgage in Principle. Whether you’re buying a home or remortgaging, it gives you an indication of how much you may be able to borrow before making a full application.
Other lenders will go through bank statements in more detail and may ask for explanations of any, especially large or regular outgoings. In addition to requesting bank statements, lenders will also want to see evidence of income to back up the mortgage application.
There is a range of information the mortgage lender will have to check, so make sure you have the following to hand:
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.
Once you’ve had an offer accepted on a house and submitted your formal mortgage application, borrowers should expect it to take 2-4 weeks from mortgage application to mortgage offer provided the process goes smoothly and your application is relatively straightforward. For more detail, see our guide on how long it takes to get a mortgage.
Mortgage brokers can make the mortgage application process easier for you. They will advise you on which lenders are more likely to accept your application and find the right mortgage for you.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
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.
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