Kristian Derrick, Author at Mortgageable

How Long Does a Mortgage Application Take In 2024?

by Kristian DerrickPosted on 29th April 2019 | Updated 31st October 2024

How long does mortgage approval take? Buying a home can be a lengthy process. There are lots of viewings, mountains of paperwork, and many checks to go through before you get to the exchanging of keys and contracts.

Find out how long it takes to get a mortgage with our guide which covers everything you need to know about the mortgage application process.

If you need to borrow money, there is no moving forward with a house purchase until you have a mortgage approved by a lender.

How long it takes to get a mortgage can depend on a number of factors, including the likes of your credit rating, the results of a mortgage valuation survey, and your income and affordability assessment.

How Long Does a Mortgage Application Take To Be Approved?

The average time for a mortgage to be approved in the UK is typically between 2 to 6 weeks.

In some cases, it can be approved as fast as 24 hours but this is typically very rare.

How Long Does a Mortgage Application Take?

So, how long does it take to get a mortgage?

There are several things that can impact how long it takes to get a mortgage – the stages involved in a mortgage application are outlined below:

Mortgage Application Process Timeline:

Mortgage in Principle

The first step of the process is usually getting a mortgage in principle.

This is simply a statement from a lender, stating that they can lend you a certain amount to purchase a home ‘in principle’.

It is a really quick process if you have all the necessary documents ready (ID i.e. passport, 3-6 months bank statements, and proof of income) and have picked out a mortgage deal.

A lender will ask you for some basic information, such as your income, current financial status, etc., and will check your credit history, where they will verify you have the required credit score for a mortgage.

This is not a guarantee that a lender will definitely agree to a mortgage in the future, but it useful to have to show estate agents., as it will demonstrate that you are serious about buying.

Your estate agent will be able to show you homes that could be purchased with the loan agreed in principle.

Furthermore, an agreement in principle may speed up your application process once you have found a property you want to make an offer on, especially if you are going with the same lender.

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The Mortgage Application

The next step in arranging a mortgage is the application.

Filling in your mortgage application is not a lengthy process, it should only take a few hours at the most, as long as you have your finances in order and the necessary documents and information at hand.

To determine the amount you are eligible to borrow and your reliability to pay it back, lenders will need evidence of the following:

Details of the property you have put an offer on, as well as information on the seller’s estate agent and proof of your deposit.
Valid ID, such as a passport, to prove your identity and proof of your current address, such as a utility bill.
Three months bank statements, which can be used to show what your current outgoings are, including the likes of other credit commitments, childcare, utilities, leisure time, holidays, money to savings, pension contributions, etc.
Up to six months of payslips to provide proof of your income, including any bonuses or overtime. If you are self-employed, your accounts and a few years of tax returns will be required to determine what monthly payments you can afford.

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A lender will review all this information and carry out a credit check.

If they need no further information or clarification from you, they will arrange a valuation of the property you are hoping to buy, to determine if it is priced correctly and suitable for a mortgage.

There are different types of mortgages, and make sure you are aware of the fees involved in buying a mortgage.

Usually, the valuation carried out by your lender will be a ‘Standard Valuation’, which is the minimum check required by law, before a mortgage can be approved.

An independent surveyor will carry out an inspection of the property, taking note of any major issues or defects that could affect the value property.

They will also investigate what similar homes in the area have sold for, to see how your desired property compares.

They will then complete a report known as a Standard Valuation, which will be reviewed by your lender.

If you want a more detailed survey – perhaps you have been burned before – there are a couple of more thorough evaluations you can carry out before moving forward with the mortgage process. They are:

Full Buildings Survey – Used to be known as a Structural Survey, a Full Buildings Survey involves a comprehensive inspection of the condition of the property, including any structural abnormalities or defects, any necessary repairs, and maintenance requirements. This is useful for period properties, larger homes, or non-traditional builds.
A Homebuyer’s Report – Includes more detailed information than a Standard Valuation, including information on any current or potential future issues with the property and maintenance and/or repair costs.

If your lender is satisfied with the valuation and all other checks, your mortgage application should be approved and your offer will become official.

Sometimes, the surveyor may determine that the sale price or your offer is higher than the value of the property.

This is actually quite common and could be due to a number of issues, such a market conditions, structural defects or just a seller overestimating the value of their property.

These downgraded valuations are not just there for the protection of the lender, but also for your protection, to prevent you from paying more for a property than it is worth, as this may put you into negative equity.

However, there are still options open to you to secure a mortgage in these instances.

You can contact the seller with the results of the valuation to discuss a potential reduction in the selling price.

If this is fruitless, and you really want the property you could increase your deposit amount to make up the shortfall.

Related reading?

How long does it take to get a valuation done?

After you have submitted your mortgage application, your lender will instruct the surveyor to carry out a valuation, the aim of which is to ensure the property is worth the amount you want to pay for it.

The surveyor will contact the estate agent in control of the property and request access to carry out a thorough inspection and survey of the property so that they can check it is structurally sound and has no obvious issues.

This typically takes a day since most surveyors will create the report on the same day as the inspection and send it straight to the mortgage lender’s underwriter.

Once the mortgage lender’s underwriter has received a copy of your completed survey, they will check to see if the valuation makes sense and that there are no issues with the property highlighted in the report.

From start to finish, the entire valuation process takes around 2 weeks to complete on average.

How long does it take between a mortgage valuation and an offer?

After the valuation has been received from the surveyor, the lender’s underwriter will have all the required information to come to a final decision and will then be able to provide a mortgage offer.

At the point, the mortgage lender is willing to make an offer you will have it sent to you through the mail. Your conveyancing solicitor will also be mailed the offer.

It can take anywhere from 2 to 20 days to receive an offer.

How long does it take to exchange contracts?

Once your solicitor has received the offer from your lender, you should be able to exchange contracts with them in around 2 months.

During the mortgage application period, your solicitor will have been executing the conveyancing process.

This involves tasks such as applying to your local authority, for a market search, which takes around 1 month on average, although can take longer depending on how busy your local authority property and the land department are.

Other tasks your solicitor will have been doing include communicating with the seller’s solicitors and asking relevant and important questions.

Once all of the above tasks have been taken care of, your solicitor will book a meeting with you for a pre-exchange meeting, where you can ask questions and raise any issues.

If you are happy, they will then arrange a convenient time for a final competition date.

How long does completion take?

The competition date – the day you finally get to start life in your new home.

Once the exchange of contracts has taken place, your appointed solicitor will organise the mortgage to be finalised so that you now officially own your home.

The period from the exchange of contracts to the completion date depends on both the buyer and owner.

Once you have both agreed to a date, it takes 1 week from this point since this is the amount of time it will take to receive the funds once your solicitor has notified your lender.

Typically it takes around a month from the exchange of contracts to the completion.

How Long Does a Mortgage Offer Last?

A very common question we receive is “How long does a mortgage offer last?“, generally speaking, It can take between 2 and 6 weeks to get a mortgage offer.

However, if your application is a little more complicated, such as if you are looking to buy a non-standard build, or have bad credit, it may take longer.

Once your mortgage application has been approved, the offer is usually valid for 6 months. However, some lenders may have a completion deadline for their offer.

After this deadline has passed, you may be able to still use the same lender for a mortgage, but your eligibility is likely to be re-assessed as circumstances may change.

Therefore, you may have to start the application process again and your new offer may be altered depending on your current circumstances.

Is it possible to speed up the mortgage application process?

A mortgage broker can really help with the mortgage process as they will be familiar with all of the latest deals on the market, and the ones you are most likely to be accepted for.

This will save you a considerable amount of time as you won’t have to research the deals that are best suited to your circumstances.

Your broker will also help you fill in your application forms and let you know what documentation you need to complete the process quickly.

Furthermore, they will handle the submitting of the application and liaising with your solicitor to get the whole process moving much quicker.

How long does it take to get a mortgage if I’ve got a poor credit history?

Getting a mortgage with poor credit is trickier. Most mainstream lenders are reluctant to loan to those with bad credit as their poor credit history doesn’t provide the assurance they need that the loan will be paid back.

However, this doesn’t mean that those with bad credit are completely ineligible for a mortgage.

There are a number of niche mortgage providers that specialise in securing mortgages for those with no credit history, or serious blemishes on their credit record.

These lenders will consider the severity of the credit issue, the duration of the credit issues, the age of the problem, along with the standard eligibility criteria for a mortgage.

It is likely that you will need to put down a larger deposit on a mortgage if you have bad credit as a bigger deposit will offset some of the risks of loaning to someone with bad credit.

You will also need documentation to prove that you can afford the monthly payments including bank statements and payslips.

Furthermore, your outstanding loans, along with any other outgoings will be assessed and may affect the amount that you can borrow.

If you have bad credit and are interested in buying a home, get in touch with an experienced mortgage broker who has access to the whole market.

They will be able to access a wider range of mortgage deals including those from speciality lenders that fit in with your requirements.

This will make the process of applying for a mortgage go much quicker than having to research individual lenders yourself, which is even more important for first time buyers.

Types of First Time Buyer Mortgages

For a more in-depth look into some common types of first time buyer mortgages, check out our following guides:

Key Takeaways on Your Mortgage Application Timeline

A mortgage in principle may help to make the mortgage application process go a little smoother, by showing you and lenders what you can afford.
A mortgage application requires valid ID & address verification, your estate agent and solicitor’s details, proof of income and outgoings and proof of deposit.
A valuation of the property will be carried out to determine it is priced correctly and is suitable for a mortgage.
Generally speaking, it usually takes two to six weeks to get a mortgage approved.
The application process can be accelerated by going through a mortgage broker who can find you the best deals that suit your circumstances.
A mortgage offer is usually valid for 6 months.

Call us today on 01925 906 210 or complete our quick and easy First Time Buyer Mortgage Application.

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Remortgaging Costs (Legal Fees & Others Explained)

Kristian Derrick

by Kristian DerrickPosted on 26th April 2019

When you have a mortgage, you are often tied to a deal that only lasts for a finite period of time, such as 2 or 5 years.

This means that once the term is over you will be transferred to your lenders base interest rate, which could see your monthly payments skyrocket.

That is why it is so important that you consider remortgaging in time before your current deal is finished.

There will be costs to remortgaging, but if you choose the right deal from the right lender, you can save yourself thousands over the course of your mortgage.

This is why it’s one of the most common reasons for remortgaging, it can save you a lot of money, other common reasons include to release equity, for home improvements or to buy new property.

The Costs of Remortgaging

There are a number of fees that come with remortgaging, so it is important to determine if the money you will save will outweigh the costs.

A lower monthly payment may seem attractive, but it could cost you dearly if you haven’t factored in the costs of remortgaging. Let’s take a look at some of the common remortgaging fees.

Early Repayment Charges

You will have to pay early repayment charges to your current lender if you choose to leave your existing mortgage deal before it is up. It is important you determine how big this fee may be as it may completely eclipse any savings you may make with a new mortgage.

Repayment charges vary depending on the type of mortgage you are currently on and how long you have been on it. Generally speaking, the early repayment charge reduces with the length of time on the mortgage.

For example, with a five-year tracker, the early repayment charge could be 5% (of the outstanding mortgage debt) in the first year, decreasing by 1% each year of the deal.

If the sums are a little complicated for you to work out, speak to your mortgage broker who will be able to talk you through all the numbers in a way that is easy to understand.

Deeds Release /Exit Fee

The Deeds Release/Exit Fee is paid to your existing lender. Not all lenders will charge a Deeds Release/Exit Fee, but if yours does, you can expect to up to £300.

Arrangement Fees

The arrangement fee is charged by your new lender to set up the new mortgage and is non-refundable if something goes wrong. This fee will vary between lenders and could be a fixed fee or a percentage of the loan amount.

Usually, the better the interest rate the higher the arrangement fee, so you should discuss with your mortgage advisor if a low-interest rate is worth the high fee.

You can pay the arrangement fee upfront to your new lender or you can add it the cost of your mortgage. It should be noted that if you add the fee onto your mortgage, you will be paying interest on it for the entire mortgage term. So, if you can pay it upfront, you will save yourself money in the long run. Some lenders have fee-free products.

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Booking Fee
Also non-refundable, a booking fee is charged by some lenders to secure a good rate on your chosen remortgaging deal. This will be paid up-front to your new lender and is usually between £100 and £200.

Conveyancing Fee

Paid to your solicitor, the conveyancing fee covers the legal work required to transfer your mortgage from your old lender to your new lender. Your solicitor will also handle the payment of the outstanding debt to your existing lender.

Some remortgaging deals will include a free legal package, but in these cases, the lender chooses the solicitor and therefore you will not be guaranteed a swift and efficient service. The conveyancing fee usually comes in at around £300.

There may be additional conveyancing fees to be paid to your solicitor if you are remortgaging to buy out a partner or to add someone to the mortgage. Make sure you tell your solicitor this before they go ahead with the paperwork.

Valuation Fee

A valuation is required by a lender for security purposes so that they know that they can recoup their losses following repossession if you don’t keep up with the mortgage repayments. Many remortgage packages include a valuation for free, and unlike buying a new home, you won’t need to pay for a structural survey or a home buyer’s report.

If you are expected to pay for the valuation, the price will depend on the size and value of the property, but it usually costs between £200 and £400.

Mortgage Broker Fee

If you are remortgaging through a mortgage broker you may have to pay them a fee which can vary between a fixed fee or a percentage of the loan amount. A fixed fee is usually around the £300-£500 mark, but if you are paying your broker a percentage fee it can be quite expensive.

Just 1% of a £150,000 loan is £1,500. If you have to pay your broker up-front and something goes wrong you will lose this money, so always ask if you can pay upon completion.

If you have bad credit, it’s still possible to secure a remortgage with bad credit, if you need assistance, don’t hesitate to contact us.

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How to Reduce the Cost of Remortgaging

There are a number of things you can do to keep the costs of remortgaging as low as possible, they include:

Shop Around – Don’t just take the first deal that you come across. Take a look at mortgages from a number of lenders until you find the best deal. That is where a mortgage broker adds value as they will do this for you.
Stick with your Current Lender – Speak with your existing lender as they may be able to offer you a great new mortgage deal, which will avoid the fees incurred when switching to a new lender.
Boost Your Credit Rating – As with any mortgage, the better your credit rating, the better remortgage deals you will be offered. Obtain a copy of your credit report and learn more about your financial history to discover where you can make improvements.

Top 9 Reasons to Remortgage in 2024

Kristian Derrick

by Kristian DerrickPosted on 21st March 2019

Mortgages in themselves can seem rather complicated with the likes of fixed rates, variable rates, tracker mortgages, and more to contend with.

If you are a first-time buyer, you may be a little confused when your mortgage advisor mentions remortgaging in the future.

It is always wise to know your remortgage options, especially if you have a fixed rate mortgage, which can end in the space of a few years, resulting in a hike in your mortgage payments.

Numbers of remortgages are at the highest they have been for a decade, with homeowners determined to get the best deals they can.

With increasing uncertainty over Brexit and the potential rise in base rates, it is so important to know where you stand with remortgaging.

What is a Remortgage?

Put simply, a remortgage is taking out a new mortgage on a property you already own outright or have an existing loan on.

You have two options when it comes to remortgaging – either you go through a product transfer with your existing lender, or you can switch to a new mortgage provider.

Product Transfer – Involves swapping deals with your current provider without actually borrowing any more money.
Switching Lender – Your new lender will pay the funds that are released to the old lender through a solicitor, and then your mortgage with the new provider will continue.

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Reasons to Remortgage

There are several reasons why you might consider remortgaging your property and the benefits to it could be really significant. Put simply, remortgaging can drastically improve your finances.

You could save thousands on interest, fix your mortgage rate to protect against price hikes (really useful with the uncertainty of Brexit ), make payments more affordable, or release some equity. Let’s look at some of the main reasons to remortgage in more detail:

1. Remortgaging for a Better Rate

Switching to a different mortgage provider may involve paying a small exit fee to your current provider, or there may be an early repayment charge on your outstanding loan which could be as much as 5%.

However, these extra charges could be worth the cost as you could save a huge amount of money switching providers for a better rate, particularly if your loan is still very large.

Look into the rates other providers can offer and work out if you will be saving more money despite the charges you may have to pay to leave your current lender.

Related quick help remortgage guides:

It’s a good idea to familiarise yourself with the costs of remortgaging, especially remortgaging with bad credit since you are likely to be offered a higher interest rate.

2. Your Current Mortgage Deal is Ending

Fixed rate, tracker, or discount mortgages tend to only have a term of 2 to 5 years before it reverts to the lender’s standard variable rate (SVR), which can be much higher and can cost you thousands over time.

To avoid being transferred to the SVR, look for cheaper mortgages around 16 weeks before your current deal ends.

3. Borrowing Money on Your Mortgage

You may want to release some equity in your home, whether it is to pay for repairs, upgrading a kitchen and/or bathroom, or to pay off other existing debts.

Your current lender may have declined your request to loan more money. By switching mortgages you may be able to release some equity at a cheaper rate.

Your new lender will want to know why you are borrowing more money and may ask for evidence.

4. You Own More Equity

The longer you pay into your mortgage the more equity you will have in your home. Therefore, you may have the opportunity to get a cheaper deal with a remortgage at a lower LTV (loan-to-value) ratio than your current mortgage.

5. Switching Mortgage Type

Perhaps you are looking to switch to a repayment mortgage from an interest-only loan. The chances are that you won’t need to remortgage as your lender should easily be able to make the switch for you.

You may even have the option to keep some of the loans on your interest-only deal and switch part of it to capital repayment. It can be more difficult, however, to change from a capital repayment mortgage to an interest-only loan.

Perhaps you want a mortgage that is more flexible that allows you to take a payment holiday if you are changing jobs, travelling, studying etc. Maybe you have heard about the offset mortgages that combine your loan with your current account or savings.

Whatever flexibility you are looking for, there is a chance that there is a mortgage that fits your needs. However, you should be aware that you may pay a little extra for the option of flexibility, so be sure you only choose the optional extras that work for you. You can always revisit any other options you may need in the future.

Related reading:

6. Release Equity for a Buy to Let

If the amount left on your mortgage is relatively small, remortgaging to release equity to purchase a buy to let is not a bad idea if you want to buy new property.

The release of equity can be used to place a deposit on a buy to let, which may work out much more cost effective as a buy to let mortgage typically have high interest rates.

As this new buy to let mortgage is certain to be larger than your current mortgage, you will need to prove to your lender that you can afford the repayments.

However, expected income from renting the new property may be taken into account when calculating your eligibility for a bigger mortgage.

Additionally, there could be periods of time where your buy to let property is empty, so you will need to show your lender that you a contingency plan to pay the mortgage with no rental income.

Similar principles apply if you are looking to release a lump sum from your current home to purchase an additional house. Your lender will want to know that you will be able to keep up with the higher repayments each month.

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7. Remortgaging to Beat Base Rate Rises

All this uncertainty over Brexit does have a lot of lenders worried about how it may affect the Bank of England base rates.

With a variable rate mortgage, like a discount or tracker, your payments will increase significantly if the base rate continues to rise.

You may want to consider switching to a fixed rate mortgage, so you know what you will be paying each month, at least in the short term.

8. The Value of Your Home has Significantly Increased

The value of your property may have significantly increased – due to renovations or extensions – since you took out your current mortgage. This means that you could be in a lower LTV band and become eligible for lower interest rates.

If you think this may be the case, get in touch with our expert mortgage advisors to find you a new rate.

9. Change in Circumstances – Divorce

If you are divorcing or splitting with a partner that you have co-signed a mortgage with and you need to consider separating your finances. The shared home is usually the biggest asset that needs to be split and there are several options open to you.

Selling the house, paying off the loan and splitting any profit is one option, and allowing your partner to buy you out is another.

But, if you want to stay in the house you will have to take over the entire mortgage repayments and may need to buy out your partner.

If this is your chosen course of action you will need to contact your lender as soon as possible to see if it is possible to transfer the mortgage into your name only. Your mortgage provider will want to make sure that you can afford the payments on your sole income.

If you do not meet their eligibility criteria you may be able to secure a new mortgage with a different lender. Legal work and costs will apply for the change of name.

So, there you have it, all the reasons why you should always be considering your remortgaging options. You may be able to save yourself thousands of pounds over the course of your repayment term.

You can also make sure that you are always getting the best deal, improving your financial situation. If you are considering remortgaging, get in touch with your mortgage advisor today.

Use our mortgage broker service to get access to thousands of deals and not just the ones your bank recommends.

Reasons to Remortgage Main Takeaways

A remortgage involves taking out a new mortgage on a property you own.
Discuss your remortgaging options with our expert mortgage advisors
Remortgaging can save you thousands of pounds, as well as releasing equity in your property, and improving your financial situation.
You may get a better rate by remortgaging, avoiding the Standard Variable Rate of your current lender.
Remortgaging can free up some capital to purchase additional homes to expand your property profile, but you will need to show lenders you can afford the additional payments.

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