How long does mortgage approval take? The journey to homeownership can be quite extensive. From countless property viewings to substantial documentation requirements and various verification processes, there’s much to navigate before you finally receive the keys to your new home.

Our comprehensive guide explores the mortgage process timeline, providing essential insights into what you can expect during your mortgage application journey.

It’s crucial to understand that property purchases cannot proceed without securing mortgage approval from a lender if you require financial assistance.

The duration of mortgage approval depends on various elements, including your personal credit score, the outcome of the property valuation assessment, and a thorough evaluation of your income and affordability status.

How Long Does a Mortgage Application Take To Be Approved?

The typical timeframe for mortgage approval in the UK ranges from 2 to 6 weeks.

While some applications might receive approval within 24 hours, such swift outcomes are exceptionally uncommon.

How Long Does a Mortgage Application Take?

Understanding how long does mortgage approval take requires examining several key factors.

The mortgage process involves multiple stages, which we’ve detailed below:

Mortgage Application Process Timeline:

Mortgage in Principle

The mortgage process typically begins with obtaining a mortgage in principle.

This preliminary agreement from a lender indicates the amount they’re willing to lend you ‘in principle’ for your property purchase.

If you’ve prepared all required documentation (including identification such as a passport, recent bank statements covering 3-6 months, and income verification) and selected your preferred mortgage product, this step can be completed swiftly.

Lenders will request basic information about your financial situation, including income details and current monetary status, while conducting a credit check to verify your mortgage eligibility.

While this agreement doesn’t guarantee final mortgage approval, it serves as valuable proof of your serious buying intention when dealing with estate agents.

This document enables estate agents to show you properties within your approved borrowing range.

Additionally, securing a mortgage in principle might expedite your formal application process once you’ve identified your desired property, particularly if you proceed with the same lending institution.

Recommended guides:

• Remortgage for home improvements.
• How long does mortgage approval take?
• Remortgage with bad credit.
• Remortgage for help to buy.
• How to sell a house.

The Mortgage Application

The subsequent phase involves submitting your formal mortgage application.

Completing the mortgage application form shouldn’t be time-consuming; it typically requires just a few hours, provided you’ve organised your financial documentation and have all necessary information readily available.

To progress through the mortgage process, lenders require comprehensive documentation to assess your borrowing eligibility and repayment capability. You’ll need to provide:

• Complete details of your chosen property, including the offer amount, along with the seller’s estate agent information and evidence of your deposit funds.
• Current, valid identification documents, such as a passport, to confirm your identity, plus recent proof of address (typically a utility bill dated within three months).
• Three months of bank statements demonstrating your regular financial commitments, including existing credit obligations, childcare expenses, utility payments, leisure activities, holiday expenditure, savings contributions, pension payments, and other routine outgoings.
• Employment verification through six months of payslips, including documentation of any bonuses or overtime earnings. Self-employed applicants must submit business accounts and several years of tax returns to demonstrate sustainable income levels.

Your lender will scrutinise this documentation whilst conducting a thorough credit assessment.

Assuming no additional information is required, the next stage in how long does mortgage approval take involves arranging a property valuation to verify the asking price and confirm the property’s mortgageability.

Understanding different mortgage types and associated fees is crucial during the mortgage process.

The standard valuation, which represents the minimum legal requirement for mortgage approval, is typically conducted by your lender.

A qualified surveyor will inspect the property, documenting any significant issues or defects that could impact its value.

The assessment includes a comparative analysis of similar properties sold locally to establish fair market value.

The findings are compiled into a Standard Valuation report for your lender’s review.

For additional peace of mind during the mortgage process, you might consider these more detailed survey options:

Full Buildings Survey – Previously termed a Structural Survey, this comprehensive assessment examines the property’s complete condition, identifying any structural irregularities, defects, necessary repairs, and ongoing maintenance requirements. This survey is particularly valuable for period properties, larger residences, or non-standard construction types.

A Homebuyer’s Report – This provides more extensive information than a Standard Valuation, including details about existing and potential future property issues, alongside anticipated maintenance and repair costs.

Assuming the valuation satisfies your lender and all other checks are successful, your mortgage application should receive approval, making your offer official.

Occasionally, the surveyor might determine that your offer or the asking price exceeds the property’s actual value.

This relatively common occurrence can stem from various factors, including current market conditions, structural issues, or sellers’ optimistic pricing expectations.

These reduced valuations serve not only to protect the lender but also to safeguard your interests, preventing you from overpaying for a property and potentially falling into negative equity.

Nevertheless, there remain several viable options for securing a mortgage in such situations.

You have the option to approach the seller with the valuation results to negotiate a potential reduction in the property price.

If these negotiations prove unsuccessful and you’re particularly keen on the property, you might consider increasing your deposit to bridge the difference.

How long does it take to get a valuation done?

Following your mortgage application submission, your lender will arrange for a surveyor to conduct a valuation, ensuring the property’s worth aligns with your intended purchase price.

The surveyor will liaise with the property’s estate agent to arrange access for conducting a comprehensive inspection and survey, examining both structural integrity and potential issues.

This assessment typically concludes within a day, as surveyors generally complete and submit their reports to the mortgage lender’s underwriter on the same day as the inspection.

Once the underwriter receives your completed survey, they will evaluate the valuation’s reasonability and review any property concerns highlighted within the report.

The entire valuation process, from initiation to completion, typically spans approximately 2 weeks.

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

Following receipt of the surveyor’s valuation, the lender’s underwriter will possess all necessary information to reach a final decision and proceed with issuing a mortgage offer.

Upon the mortgage lender’s decision to extend an offer, you’ll receive formal documentation via post. Your conveyancing solicitor will also receive a copy of this offer.

The timeframe for receiving an offer typically ranges from 2 to 20 days.

How long does it take to exchange contracts?

After your solicitor receives the lender’s offer, contract exchange typically occurs within approximately 2 months.

Throughout the mortgage process, your solicitor will have been managing the conveyancing procedures.

This includes requesting local authority searches, which generally take about 1 month, though timelines may extend depending on the workload of your local authority’s property and land department.

Your solicitor will also handle additional responsibilities, such as corresponding with the seller’s legal representatives and addressing pertinent enquiries.

Upon completion of these preliminary steps, your solicitor will schedule a pre-exchange consultation, providing an opportunity to discuss any concerns or questions you may have.

If you’re satisfied with everything, they will proceed to arrange a mutually convenient completion date.

How long does completion take?

The mortgage process timeline can vary significantly, with the completion phase representing the final step in your property purchase journey. Understanding how long does mortgage approval take helps set realistic expectations, as various factors can influence the overall duration from application to completion.

The completion date marks the momentous occasion when you can finally begin your life in your new property.

After contracts have been exchanged, your designated solicitor will proceed with finalising the mortgage process, culminating in your official homeownership status.

The timeframe between contract exchange and completion is flexible, depending on mutual agreement between the buyer and seller.

Following the agreement on a specific date, the process typically requires one week, as this is the standard duration for fund transfer once your solicitor has informed your mortgage lender.

Generally, the period from exchange of contracts to completion spans approximately one month.

How Long Does a Mortgage Offer Last?

A frequently asked question regarding how long does mortgage approval take is the duration of a mortgage offer’s validity. Typically, obtaining a mortgage offer requires between 2 and 6 weeks.

Nevertheless, if your application involves complexities, such as purchasing a non-traditional property or having credit issues, the mortgage process might extend beyond this timeframe.

Upon approval of your mortgage application, offers generally remain valid for a 6-month period. It’s worth noting that certain lenders may impose specific completion deadlines for their offers.

Should this deadline expire, whilst you may still pursue a mortgage with the same lender, they will likely need to reassess your eligibility as circumstances could have changed.

Consequently, you might need to restart the application process, and your new offer could differ based on your current situation.

Related reading?

• Repayments on £80,000 mortgage.
• Interest-only mortgages.
• Zero deposit mortgage.
• The first mortgage explained.
• What stops you getting a mortgage in the UK?

Is it possible to speed up the mortgage application process?

Engaging a mortgage broker can significantly expedite the mortgage process, as they possess comprehensive knowledge of current market offerings and can identify products you’re most likely to qualify for.

This approach saves considerable time by eliminating the need to research suitable deals independently.

Your broker will assist with application form completion and identify necessary documentation to streamline the process.

Additionally, they’ll manage application submission and coordinate with your solicitor to accelerate the overall procedure.

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

Securing a mortgage with adverse credit presents additional challenges. Traditional lenders often hesitate to provide loans to individuals with poor credit, as their credit history fails to provide sufficient confidence in loan repayment.

However, this doesn’t automatically disqualify those with poor credit from obtaining a mortgage.

Several specialist mortgage providers focus specifically on arranging mortgages for individuals with either no credit history or significant credit issues.

These specialist lenders evaluate various aspects of credit issues, including their severity, duration, and timing, alongside standard mortgage eligibility requirements.

If you’re applying with bad credit, be prepared to provide a larger deposit. This increased initial payment helps mitigate the lending risks associated with adverse credit histories, making lenders more comfortable with your mortgage process.

You’ll need to furnish comprehensive documentation demonstrating your ability to manage monthly repayments, including detailed bank statements and recent payslips. This is a crucial part of understanding how long does mortgage approval take, as thorough documentation can expedite the process.

Your existing financial commitments, including current loans and regular expenditures, will undergo careful assessment, potentially impacting your borrowing capacity.

For those with adverse credit seeking homeownership, consulting an experienced mortgage broker with whole-of-market access is highly recommended.

These professionals can access an extensive range of mortgage options, including specialised products from niche lenders that align with your specific circumstances.

This approach significantly streamlines the mortgage process, particularly beneficial for first-time buyers, eliminating the time-consuming task of researching individual lenders independently.

 

Key Takeaways on your Mortgage Application Timeline

• A mortgage in principle can facilitate a smoother application process by clarifying affordability for both you and potential lenders.
• A mortgage application requires valid identification, address verification, estate agent and solicitor details, income and expenditure evidence, and deposit confirmation.
• A property valuation must be conducted to confirm appropriate pricing and mortgage suitability.
• Typically, mortgage approval takes between two to six weeks.
• The application process can be expedited through a mortgage broker who can identify suitable deals matching your circumstances.
• A mortgage offer typically remains valid for 6 months.

Call us today on 03330 90 60 30 or complete our straightforward First Time Buyer Mortgage Application.

When budgeting for buying a house there is so much more to take into consideration than the cost you’re willing to go to for your property.

The deposit that you are initially putting down is only the start of the outgoing costs of buying a home.

There are the likes of fees, stamp duty, and other charges that you will be expected to pay, both before completion and after completion.

To help you with your budgeting when buying a house, we have put together a guide on all the fees you can expect to pay and when you may expect to pay them.

Fees Before Completion

Long before you get the keys to your new home, there are numerous fees and cost that you need to pay. Here are the fees that come prior to completion.

Mortgage Costs

There are quite a few fees involved in the process of securing a mortgage.

• Deposit – The deposit for your home is the biggest cost you will have to pay before completion. How much you will pay depends on the cost of the property and the type of mortgage you signed up for. For example, if you went for a 90% mortgage, you would need to put down 10% of the property’s value as a deposit.
• Arrangement Fee – This is charged by your lender primarily for their administration costs. These fees are now an integral part of a mortgage and often directly affect your lender’s interest rate. You can either pay the arrangement fee up front or you can add it onto the cost of your mortgage. If you add the arrangement fee on the cost of your mortgage you will be paying interest on it, but if you pay up front and something goes wrong with the purchase, you may lose the money entirely.
• What you may choose to do is to add the fee onto your mortgage and then immediately overpay your mortgage upon completion to pay it off straight away to avoid extra interest. Most lenders allow an overpayment of 10% of the outstanding mortgage balance each year without penalties, but it is always a good idea to check with your provider to make sure.
• Booking Fee – There are a few lenders that may charge you a booking fee to secure you a good rate on a tracker, fixed-rate, or discount mortgage. The cost is usually no more than £200, but it is non-refundable.
• Valuation Fee – Charged by your lender, the valuation fee covers the cost of determining your property’s worth. This is so your mortgage provider knows they can get a decent return on their investment if you fail to keep up with repayments. It, therefore, determines how much your mortgage provider is willing the lend you. The valuation fee depends on the purchase price and type of valuation chosen. Sometimes the lender will offer a free basic valuation.

If you are wondering how long a mortgage application takes to approve, the answer is that it depends on a range of factors. Make sure you are aware of the credit score requirements before you submit your application and the fees involved in buying a property.

Homebuyers Report/Full Structural  – You are not required to pay for a detailed survey but it is certainly recommended. This would give you a thorough report on the property and whether there are any issues that need to be dealt with, such as structural problems, damp, or plumbing issues.

If there are any problems, this survey may be used to renegotiate a better price. A full structural survey usually costs between £400 and £700 although a Homebuyers Report is cheaper and may be discounted through the lender.

Mortgage Broker Fee – You may need to pay your mortgage broker for acting as an intermediary between you and the lender. With some brokers, you may need to pay a fee upfront to get the process moving and a final fee upon completion.

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Stamp Duty and Land Tax

Stamp Duty is a government tax in England and Wales that is paid on homes costing more than £125,000.

However, if you are a first-time buyer, you get a little more leeway and will only pay Stamp Duty on the first £300,000 for properties costing up to £500,000. For house costing between £125,001 and £250,000, buyers will pay 2%.

For houses costing more than £250,000, the buyer will pay the 2% and then 5% on the amount that is over £250,000 up to £925,000.

Between £925,001 to £1,500,000, you will pay 10%, and on the amount above £1,500,001, you will pay 12%.

If you live in Scotland, instead of Stamp Duty you will pay the Land and Buildings Transaction Tax Rate.

You don’t have to pay this on the first £145,000, pay 2% on the cost between £145,001 and £250,000, and pay 5% on the cost of your purchase between £250,001 and £325,000.

Our expert mortgage advisors will be able to give you further information on the Stamp Duty and Land tax you can expect to pay, depending on the cost of your intended property.

Solicitor Fees

You will require a solicitor to take care of all the legal work that comes with buying a home. These include dealing with transferring ownership between parties, checking for any hidden problems that could affect you immediately or in the future, checking that your paperwork is correct, and registering the property in your name with the Land Registry. Some mortgage companies in England and Wales will cover these fees if you go with one of their chosen solicitors. Alternatively, your provider may give you some cash back on completion to go towards the legal costs.

Expect to pay around £1,000 to £2000 in legal fees that will be paid throughout the buying process and upon completion. You can use your own solicitor, but they will have to be agreed upon by the mortgage company as they will handle the legal work for all parties.

Insurance

Your lender will not accept any mortgage application without buildings insurance, which will protect both your and their investment against fire, subsidence, flooding, etc.

Although it not required by lenders it is also wise to have contents insurance to cover your possessions, as well as life insurance that will pay off the mortgage if something were to happen to you.

Fees After Completion

Even after you have exchanged keys and contracts, there are some extra costs and payments, some of which are ongoing. These include:

Ground Rent and Service Charges

There could be further fees to pay upon completion of your house purchase, such as if your property is a leasehold, where you don’t actually own the land, instead of paying to rent it from the freeholder for many decades. In these cases, you might have to pay a service charge for upkeep as well as ground rent.

If you are moving to a freehold, which has communal areas, which are shared by a number of neighbours, you will probably have to pay a monthly maintenance cost for the upkeep, such as gardening costs, fixing the roof etc.

Moving Costs

Moving can be an expensive business – the cost of a removal company could cost between £100 and £1000 depending on the amount of stuff you need to be transported. You could save yourself some money if you have some willing friends and family members that can help you out. Even better if one of them has a van.

Mortgage Repayments

Make sure you sign up for a mortgage that you can actually afford. Failure to pay your mortgage could result in your home being repossessed. In the years following your house purchase regularly reassess your mortgage options to ensure that you are always getting the best rate you can. It could save you thousands of pounds over the term of your mortgage.

Furnishings and Decorating

It is important to factor into your budget any furniture, white goods, or decorating that your new house will need to make it liveable to the standard you would like.

This is especially true if you currently rent a furnished place, as you will need everything – you really don’t realise how much stuff it takes to make a functional home until you buy your first home. From the small things like lightbulbs and cutlery to the big stuff like beds and the boiler (expect to pay somewhere in the region of £1,500 – £2,000 for one of the best combi boilers!). All these costs add up, so you will need to be sure you have some money put aside in your budget unless you want to live in a shell for a few years.

Make sure you know what comes included within the cost of your home – if the likes of the white goods are not written down in the contract, you cannot be sure that they will be included in the sale. You need to be aware of any extra costs.

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:

• Family deposit mortgages 
• Shared ownership mortgages 
• Gifted deposit mortgages 

Or if you want a more general overview check out the different types of mortgages.

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If you’re in the UK, there is no minimum credit score that you need to buy a house.

There is no “holy grail” number that your score needs to reach in order to qualify for a mortgage.

This is because there is no universal credit score. In fact, your credit rating can even vary between different lenders and credit reference agencies.

In this post, we’ll explore credit scores in more detail, and explain how you can improve your score to get the mortgage you want.

How does my credit score affect my mortgage application? 

When you apply to take out a mortgage (or any other type of loan), lenders will look at your credit score.

This will help them to determine how much risk is involved when lending to you. Are you a reliable borrower, or will you struggle to repay the debt?

Normally, a high credit score means you’re a low risk borrower. In this case, you’ll often be accepted for a mortgage, sometimes even with a better interest rate than someone with a lower credit score.

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 How much does my credit score matter when applying for a mortgage?

Yes, it’s important, but getting approved for a mortgage isn’t all about your credit score.

Mortgage lenders want to check that you can afford your mortgage repayments before they agree to lend you any money.

Alongside looking at your credit history, they’ll also take into account how much you earn. They’ll even assess other monthly costs such as childcare and transport, to ensure that you can afford the mortgage repayments.

It’s also worth remembering that lenders may be more willing to lend to you if you are able to put down a large deposit. If you’re only able to put down a small deposit, lenders may require a higher credit score to make up for it.

 Recommended reading: What are the different types of mortgages and what fees are involved in buying a home? 

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:

• Family deposit mortgages 
• Shared ownership mortgages 
• Gifted deposit mortgages 

How can I improve my credit score?

If your credit score is low, there are plenty of things you can do to try and increase it before applying for a mortgage.

Whether it’s simply making sure that you’re registered on the electoral role, or checking for errors in your credit report, you’d be surprised how much the little things can make a big difference.

The main things to consider when looking to improving your credit score are:

• Make sure you’re on the electoral roll.
• Ensure all your bills are paid on time.
• Check if there are any mistakes or incorrect financial links to other people on your credit reports.
• Avoid several credit applications in a short space of time.
• Try and reduce your levels of debt before applying for a mortgage.

It’s also important to prove to lenders that you’re capable of managing your finances, especially if you are a first time buyer. If you always pay your bills and pay off your credit card balance on time, your credit score will slowly begin to rise.

If you want to speak to us about applying for a mortgage, one of our friendly advisors would be happy to help. You can contact us on 01925 918960. 

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