The length of time it will take for you to secure a mortgage depends on numerous factors:
- How long it takes you to complete your role – finding and sending the appropriate documents for your application
- How long it takes for the mortgage broker to complete their job
- The duration of time the lender takes to approve your application
How long does a mortgage application take?
Many people choose to obtain a mortgage ‘agreement in principle’ before they apply for a mortgage. The lender will ask for some basic information and perform a credit search to produce a figure that they would be able to lend ‘in principle.’ However, this does not mean you will be offered a mortgage, but it can be helpful to show estate agents that you are genuine about buying and it may speed up your application once you find a property to purchase. The mortgage application itself is not a lengthy process, and it can usually take a few hours to complete, although you will need to ensure your finances are in order and that you have access to all the relevant information. To assess your reliability as a borrower and how much you are entitled to borrow, lenders will want to know the following details about you, and evidence will be required to support your application:
- How much your outgoings are, including how much you spend on things like childcare, holidays, and pension contributions. You’ll need to produce bank statements showing what goes out of your account each month.
• What your income is, including any bonuses or overtime – the lender will want to see your payslips as proof, or your accounts if you are self-employed. This helps a lender calculate what monthly payment you can afford.
• ID to prove your identity and current address
• Details of the property you want to buy
• Your estate agent’s and solicitor’s details
How long does it take to receive a mortgage offer?
After the lender has reviewed all of your information, performed a credit check, and does not need anything further from you, they will arrange a valuation of the property you wish to buy. This may take a few weeks or longer as the surveyor needs to visit the property, write their report and submit it to the lender. Once the lender has considered the valuation and is satisfied they should be able to approve your application and formally offer you a mortgage. For the most part, you can expect it take between 18-40 days for your application to be processed, however a more complex application can prolong this further.
What can you do to speed up your mortgage application?
Ensure you have all the relevant documents prepared and pass them over to the mortgage broker quickly, and communicate regularly with your solicitor and the broker to keep things moving along. All of these measures can help to speed up your mortgage application so be organised and prepared before you begin the process.