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When you’re buying a home, getting your mortgage approved as soon as possible so you can move fast is vital. But how long does it take to get a mortgage and how can you speed it up? We take a look….
A mortgage application typically takes two to four weeks to process. Factors such as how busy the lender is, how straightforward your circumstances are and how quickly you respond to any requests can influence how long it takes for a mortgage to be approved.
The good news is, you can get an indication of how much you can borrow and even a “mortgage agreement in principle” almost instantly. This states what a lender is likely to lend you based on information you give them online or over the phone about your income and a credit score. But it’s only one step in getting the all important mortgage offer. Read on for the other stages involved and how long it takes to get from here to a formal mortgage offer.
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You’re probably wondering why getting mortgage approval takes so long. There is a range of information the lender will have to check, so make sure you have the following to hand to speed up the process:
The lender will then want to conduct a mortgage valuation to ensure this is a sound investment to lend on (this is usually a desk based valuation and is not to be confused with a house survey which you might want to get to check the condition of the property).
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One of the most important steps when it comes to taking out a mortgage is making sure you get the best mortgage. The easiest and fastest way to do this is to use a fee-free broker. If you do this, you’ll have a fact-finding call with the mortgage broker where they’ll as you about your circumstances. Then they’ll go away and find the best mortgage deals for you before contacting you and explaining your options. Plus, some mortgages are only available via brokers so you may get more choice of deals too. And their expert knowledge means they’ll be able to match you to the lender that’s most likely to accept your application.
It is possible to find a mortgage yourself such as by using comparison sites but it can be a time-consuming process and you won’t be getting mortgage advice. Alternatively, you may choose to go direct to the lender, either by making an appointment in branch, over the phone or review options on lender websites. How long this takes depends on speed of appointments and how many lenders you are approaching.
Once you’ve chosen a mortgage, the first, and simplest, step is getting a mortgage agreement in principle (AIP). A mortgage agreement in principle (sometimes referred to as a mortgage decision in principle) states what a lender is likely to lend you based on information you give them online or over the phone about your income and a credit score. You can usually get one instantly.
A mortgage agreement in principle is useful because it helps you know what you’re likely to be able to borrow. And it’s also helpful to get a mortgage agreement in principle in place before you start house-hunting to share with estate agents to show you are a serious buyer. But it’s not a mortgage offer and it’s not a 100% guaranteed you’ll get the full mortgage until all the checks and paperwork have been done at a later stage. To do this, you’ll need to submit a full mortgage application.
The next step is to make your full mortgage application. When you’re considering how long does a mortgage application take, this stage can be much faster if you use a mortgage broker. Your broker will do the mortgage application for you and it should be a quick and straight forward process. When you apply for a mortgage you need to provide documents including bank statements, usually the last three months, and proof of earnings. If you’re employed, you’ll usually need to show your recent payslips and your P60. If you’re self-employed, you’ll usually need your last two years’ SA302 tax calculations and your tax year overviews for those years too.
So to save time, make sure you have these to hand. And for more information, read our guide on How to make a successful mortgage application.
So how long does it take to get a mortgage offer? After you’ve made your full mortgage application it can take 2-4 weeks to get a mortgage offer, provided the process goes smoothly and your application is relatively straightforward. However, when it comes to how long does it take to get a mortgage approved, the exact amount of time can vary by lender, the house you’re buying, the findings of the mortgage valuation survey and your personal and financial circumstances.
Within the period between submitting your application and getting a mortgage offer there are a number of stages that will happen before the mortgage offer can be approved:
The online mortgage finder from L&C lists the mortgage deals you are eligible for from over 80 lenders
When you apply for a mortgage, the lender will instruct a surveyor to carry out a mortgage valuation to ensure the property is adequate security for the loan. And it can take around two weeks to carry out a home valuation. Within this timescale, the surveyor has to arrange a date, undertake the mortgage valuation survey and write their report. The mortgage lender’s underwriter will review the report to ensure the value is accurate and that there are no issues.
If the lender is happy with your personal financial situation, and the outcome of the valuation survey, they will make you a formal mortgage offer. If you should receive a down valuation, see our guide on what you can do.
But it’s important to note that a mortgage valuation is only for the benefit of the lender. It is not the same as when you commission a surveyor to undertake a house survey. When you have a house survey, the surveyor will tell you if there are any issues to do with the condition of the property from minor to significant structural problems.
They will highlight what repairs or alterations are needed, whether it’s addressing a damp patch or replacing a whole roof. The report from the surveyor also provides expert commentary on the property, from the type of walls to the type of glazing. For more information, read our guide on House survey types and costs.
Get instant house survey quotes from Chartered Surveyors in your area.
Once your mortgage offer is in place, when all your conveyancer’s pre-contract enquiries have been answered, and the survey and searches have been sorted out, you are ready to exchange contracts. At this point a completion date should be set. Read more about the conveyancing process in our guide Conveyancing timeline: How long does it take?
Now is a good time in the mortgage application process to consider life insurance. You don’t need life insurance when taking out a mortgage but it can be a very good idea to do so. If you have dependants like a partner and children who rely on your income, taking out life insurance gives a financial safety net that means your loved ones won’t need to worry about how to pay the mortgage if you die. See our guide to life insurance which explains how life insurance works, the different types and how much it costs. It’s advisable to shop around for life insurance. By all means get a quote from your mortgage lender or broker, but shop around to compare policies. Our partners at LifeSearch compare quotes from a range of major UK insurers. Advice offered is fee-free and all quotes given are without obligation.
Once the completion date is set, the end is finally in sight. But to in order to complete you may be asking how long does it take to release mortgage funds? The timeframe in which it takes for mortgage funds to be released varies by lender but it is common for funds to be released within between 3 and 7 days.
In terms of the process of how it all works, your conveyancer will contact your lender and ask them to release the mortgage funds in time for completion. The lender will send the money to your conveyancer, who’ll then send it on to the seller’s conveyancer. Once that has happened, you can officially complete the property purchase and become the legal owner of your new home.
An easy want to speed up your mortgage application is to use a mortgage broker. That’s because not only will they do the hard work of shopping around to find you the best deal, they also know the specific criteria each lender looks for. So they can match you up with the lender that is most likely to accept your mortgage application. Using a mortgage broker can considerably cut back on the time you’ll spend doing your own research and having to make appointments with or speak to individual lenders directly. And it may also reduce the chance of your mortgage application being rejected.
You can help speed up your mortgage application by having all the documents you’ll need handy and sending them through as soon as possible. It’s also a good idea – but not a stipulation – to make a list of all your financial outgoings as well as your income because your broker/lender will want to know that you’ll find the mortgage affordable.
Also, your mortgage application is only part of the house-buying process. For more tips on how to speed up the process of buying a house, read our guide on How to speed up conveyancing.
You’ll find a standard mortgage offer is typically valid for up to six months, whereas a re-mortgage is usually valid for three months (although it can also be six months). The difference is down to the fact that a purchase will typically take longer from application to completion. Some lenders have a completion deadline instead of a time limit. If you go past this you can still use that lender for a mortgage but your criteria will be re-assessed so you’ll be starting from scratch again. If your circumstances have altered you may be offered a new deal.
Failing the lender’s affordability checks, having a bad credit history and problems with the mortgage valuation are all reasons that can stop a mortgage being approved. It’s a good idea to use a mortgage broker, they’ll be able to advise you which lenders are most likely to lend to you in your circumstances.
If you go straight to your bank you will only have the choice of mortgages it offers so you could end up paying more on your mortgage than you need to. But by going to a mortgage broker, they’ll shop around and make sure you get the best mortgage rate.
This depends on the type of mortgage valuation it is. If the lender instructs the surveyor to visit the property, they’ll usually take around 15-30 minutes looking for any obvious defects that might affect its value. However, if it’s a ‘desktop valuation’, the surveyor won’t visit the property, it will be done from their ‘desk’ using publicly available information. And in some cases they will conduct a ‘drive-by valuation’. This is when the surveyor assesses the property from the outside. Find our more in our guide Mortgage valuations explained.
When it comes to how long does it take to get a mortgage approval, it can typically take 2-4 weeks after submitting your mortgage application to getting a mortgage offer. But it can take longer, for example if issues are thrown up in the mortgage valuation. Read more in our guide on Mortgage valuations explained.
If you’re asking how long does it take to get a mortgage agreement in principle, the good news is you usually get one of these instantly. A mortgage agreement in principle is the amount a lender will agree to lend you ‘in principle’ based on the information you’ve provided. But it’s not the same as a mortgage offer. To find out more, read our guide on When do I need a mortgage in principle?
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.
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of Seopa Ltd, for home insurance, authorised and regulated by the Financial Conduct Authority (FCA FRN: 313860).
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.
