What does a mortgage application look like for you?
By the end of this chapter you’ll understand:
✓ What happens when you submit your mortgage application
✓ What your lender is looking for
✓ The documents you’ll usually need
✓ What underwriting is
✓ What happens after your application has been approved
Estimated Reading Time: 12 minutes
Having your offer accepted is a fantastic milestone.
The next step is turning your Agreement in Principle into a full mortgage application. This is where your lender takes a much closer look at your circumstances before making a final lending decision. For many first-time buyers, this can feel like the most nerve-racking part of the journey.
In reality, it’s simply the lender making sure the mortgage is affordable and that the property provides suitable security for the loan. Most of the work happens behind the scenes, and your we will be there to guide you through every stage.
What documents will I normally need?
Although every application is different, you’ll usually be asked to provide documents such as:
Don’t worry if you’re unsure what’s needed. We will explain exactly which documents are required based on your circumstances.
Did You Know?
By the time your mortgage application is submitted, much of the preparation has already been done. If you’ve already provided your documents and discussed your circumstances with your adviser, the application process is often much smoother than many first-time buyers expect.
What information will the lender check?
Every lender has its own lending criteria, but they’ll usually assess similar areas.
These include:
Your income –The lender will check that your income supports the amount you’re borrowing. This could include salary, bonuses, overtime or self-employed income, depending on your circumstances.
Your spending – The lender wants to understand your regular monthly commitments. This helps them assess whether the mortgage is affordable now and in the future.
Your credit history – Your credit history helps lenders understand how you’ve managed borrowing in the past. Having credit isn’t necessarily a bad thing. What matters most is demonstrating responsible financial management.
Your deposit – The lender will want to understand where your deposit has come from. Your solicitor will usually carry out additional checks regarding the source of your deposit as part of the legal process.
What is underwriting?
This is one of those words that sounds far more complicated than it really is. Once your application has been submitted, it is reviewed by an underwriter. An underwriter’s job is simply to assess whether the mortgage meets the lender’s lending policy.
They’ll review:
If they need any additional information, we will contact you to explain what’s required. Think of the underwriter as the person checking everything is in place before the lender formally agrees to lend you the money.
Why does the lender value the property?
Your lender isn’t just lending money to you. They’re also lending against the property itself. That’s why they’ll arrange a valuation. The purpose of the valuation is to confirm that the property provides suitable security for the amount being borrowed.
It’s important to understand that this valuation is carried out for the lender, not for you. If you’d like a more detailed assessment of the property’s condition, you may wish to consider arranging your own survey. We’ll explain the different types of surveys in the next section.
What happens if the lender asks more questions?
Don’t panic. It’s perfectly normal. Sometimes a lender simply needs a little more information before they can make their decision. For example, they might ask for:
Receiving questions doesn’t mean your application has a problem. It simply means the lender wants to complete its assessment. Responding promptly helps keep everything moving.
What is a Mortgage Offer?
Once the lender has completed its checks and is satisfied with your application, it will issue a Mortgage Offer. This is the formal confirmation that the lender is prepared to lend you the money, subject to the terms and conditions outlined in the offer. Your Mortgage Offer will usually include:
Your solicitor will also receive a copy so they can prepare for the legal completion of your purchase. Receiving your Mortgage Offer is one of the biggest milestones in the home-buying journey.
One of the biggest causes of delays isn’t usually the lender.
It’s missing paperwork.
Before submitting your application, we’ll make sure everything has been checked so the lender has the information they need from the start. That preparation can make a real difference.
After submitting their mortgage application, Alex and Sophie worried because they hadn’t heard anything for several days. They assumed something had gone wrong.
In reality, their lender was simply reviewing the application and arranging the property valuation. A few days later, we contacted them to request one additional payslip.
They sent it over the same day, and shortly afterwards received their Mortgage Offer. Sometimes, a quiet period simply means everyone is busy working behind the scenes.
✓ What happens after your mortgage application is submitted.
✓ What your lender is assessing.
✓ Why documentation is so important.
✓ What underwriting involves.
✓ What happens when your Mortgage Offer is issued.
Next Chapter
Surveys, Solicitors & The Legal Process
With your mortgage application progressing, it’s time to understand what happens behind the scenes from a legal perspective.
We’ll explain the different types of surveys, what your solicitor does, why searches are carried out and how everything comes together before exchange of contracts.
