How to get a mortgage (a step-by-step guide)

Getting a mortgage is probably the biggest financial commitment you’ll ever make. So it’s important you know what to expect, how much it might cost, and what kind of mortgage product is right for you.

In our guide, we’ll walk you through every step to securing a mortgage. You’ll also learn how long it takes to get a mortgage, what to do before you apply for a mortgage, and whether you need a broker along the way.

What is a mortgage?

A mortgage is a long-term loan which helps you purchase a property. Its duration can range from as short as 5 years all the way up to 40 years, with monthly repayments covering the principal loan and interest.

The type of mortgage product you need will depend on your personal and financial circumstances. If you want to understand the options available to you, we’ve put together a comprehensive list right here .

How long does it take to get approved for a mortgage?

If you use a mortgage broker, the first step is to help you secure an agreement in principle (AIP) sometimes in as little as 48 hours. But that doesn’t mean the mortgage starts at that point. It’s only (as it states) an agreement in principle. A mortgage offer will still need to be formalised in writing by your lender later down the line.

How long it takes to get a mortgage offer depends on several factors. But in many cases, it typically takes between two to three weeks. During which time, your lender will review your documents, run a credit check, and complete a valuation of the property.

What to do before you apply for a mortgage

Before you apply for a mortgage, there are a few things you should do to improve your chances of being accepted. If you need any further guidance about how to prepare, feel free to get in touch.

Put a deposit together

At a minimum, you generally need to save an amount to cover at least 5% to 10% of the property value. By saving up for a larger deposit, you’re more likely to secure a better deal and reduce the risk of negative equity.

Ensure you have funds to cover extras

A mortgage deposit is just one of several financial commitments when buying a property. You should also have funds to cover solicitor fees, surveys, Stamp Duty, and moving fees – to name but a few.

Check your credit report

As part of the approval process, lenders will check your credit health to better understand your financial situation. So it’s a smart move to check all your details are accurate, up to date, and in the best shape possible.

Having a mortgage broker guide you through the process can be helpful when it comes to getting a mortgage. Not only by finding the right mortgage product, but by helping you become as mortgage ready as possible.

Step-by-step guide to getting a mortgage

Step 1: Use a mortgage calculator

To start the process, use a free mortgage calculator to gauge your monthly repayments against a specified loan amount and interest rate. Although the figures won’t be completely accurate, it gives you a rough idea of what you can afford to borrow.

Step 2: Speak to a mortgage broker

By speaking with a mortgage broker, you’ll get a more accurate idea of what you can potentially afford to borrow. As part of the process, they’ll check all your documents, check your credit health, and review forms of income (such as bonuses and overtime) to determine what your borrowing limit might be.

Step 3: Get an agreement in principle

If an AIP hasn’t already been arranged by your broker, now’s the time to get it sorted. It’ll give you a personalised indication on how much you can borrow based on your income, property value, deposit amount, and mortgage term.

Step 4: Find your new home

With an idea of how much you can borrow, it’s time to start searching for a property. Before you start the process, make a list of features your new home should include, such as off-street parking, a large garden, or proximity to reputable schools. To facilitate the process, you could register with local estate agents or sign up to listing alerts.

Step 5: Make an offer

With an AIP, you’re now ready to make an offer. You can either call in to the branch or phone the estate agent to advise how much you’re willing to offer. The agent will then speak to the seller and let you know whether your offer has been accepted.

Step 6: Start the mortgage application

Starting and submitting a mortgage application comes with a flurry of activity which is often simplified when using a mortgage broker. Not only will they review the best rates and products, but they’ll also submit your application and liaise with surveyors, solicitors, and agents along the way.

Step 7: Finalise purchase and move

Once you’ve received a formal mortgage offer, your solicitor will run through final checks and liaise with the seller’s solicitor to agree a date for exchanging contracts and completing the purchase. Once everything’s complete, it’s time to start packing some boxes.  

What documents do you need to apply for a mortgage?

When it comes to securing a mortgage, it’s not just your salary and deposit amount that’s considered. Lenders also want to know your outgoings such as regular payments (e.g. utility bills, childcare costs, season tickets) plus your overall creditworthiness. As standard, you’ll be asked to provide:

• Identification (e.g. driving licence or passport)
• Proof of address (e.g. utility bill dated within the last three months)
• Payslips for the past three months
• P60 from your most recent employer
• Bank statements for the past three to six months
• Two to three years’ accounting (if you’re self-employed)
• Proof of deposit (plus a gifted deposit letter where necessary)