Applying for a mortgage is always daunting as a first-time buyer or an experienced homeowner. Here is our step-by-step guide for you to follow when applying for a mortgage:

1. How to find the right mortgage deal

No matter your situation, we always recommend researching multiple mortgage types, deals, terms and brokers to ensure that you choose the best one for your individual circumstances. Once you have selected your mortgage broker, you should ask them to calculate the total cost of your mortgage. Do not be afraid to ask them to disclose all the charges and fees – this gives you the best chance of preventing any nasty surprises.

Without shopping around and giving yourself multiple options, you could end up paying more over the term of your mortgage – even thousands!

For an idea of what you might pay, consider using this mortgage calculator.


2. What do I need to apply?

To apply for a mortgage, you will need to prove that you are who you say you are. Only certain documents will be accepted. You will need to provide the originals of the documents rather than a scanned or printed version. You will be expected to provide the following:

  • Proof of ID: either a passport or driving license.
  • Details of employment: usually a P60 and 3 three months of payslips. 
  • Up to six months of bank statements showing how you have built up your deposit to purchase the property.


3. AIP

Agreement in principle (AIP) or decision in principle (DIP) involves your mortgage lender agreeing ‘in principle’ to give you a mortgage.

This approval is subject to further checks and approval of the property you want to buy.

Each mortgage lender differs, but an AIP tends to last around six months. If your search for a property takes longer than this, you may need to get a new AIP.


4. Formally applying for a mortgage

Step 4 involves you formally applying for a mortgage. Your mortgage lender will conduct a valuation on the property you intend to buy, confirming that the property is of the value you intend to pay for it. Your lender will also thoroughly check your paperwork and your credit record.

At this stage, you could get turned down. If this is the case, always try to find out why, so it is less likely to be an issue when applying to another lender.


5. Wait for a mortgage offer

If your mortgage application is approved, your mortgage lender will make you a formal offer. This will be valid for six months. For a remortgage, your offer will be valid for three months.

Typically, you will receive your mortgage offer within four weeks of applying; however, it could be longer if:

  • There is an issue with the valuation
  • The lender is busy
  • Additional information is needed
  • Your application is particularly complex.

Finally, once you have a mortgage offer, your conveyancer will transfer your mortgage funds from the mortgage lender to the seller of the property on completion day.

This blog post is not intended to be taken as advice or acted upon. If you are seeking legal advice, please get in touch with our team of solicitors