
Hello and welcome to your guide on how to apply for a mortgage. Everything you need to know about the mortgage application process in one handy checklist.
Buying a home is exciting. We know what it takes to build up enough in savings to get to this point, so well done! You should be proud of getting this far.
Now we want to help make sure that you can get the mortgage you need. We know that the whole mortgage application process can feel a bit daunting. We’re here to help guide you and remove the stress. So you can feel confident and prepared when you apply for a mortgage.
In this article, we’ll cover:
- How to clean up your finances before you make your mortgage application
- What to expect from the mortgage application process
- What you will need to provide to the bank
Mortgage application rules got tightened up after the financial crisis. So to give yourself the best possible chance of being accepted for a mortgage (or remortgage), follow the steps on this list.
When to start this process
Ideally, you would start this process at least 6 months before you make your application. But don’t panic if you don’t have that much time, just try to get as much done as possible in the time you have.
Stage 1: Cleaning up your finances
Your first task is to clean up your finances. When you make a mortgage application, the lender is going to carry out a detailed affordability assessment. They are working out whether you can afford to pay your mortgage. So they look at all your income and spending to check that you can cover the mortgage repayments easily.
Don’t worry, it’s not as scary as it sounds. We’ll make it as straightforward as possible for you.
Stage 2: Project stability
You want to make it as easy as possible for the bank to see you as a good candidate for the mortgage. Here are some tips:
Stage 3 – your mortgage application
The 4-part application process
The mortgage application process has four key parts:
- Assessment: where the lender looks at your application paperwork and supporting documents (see below). They will make an assessment about whether you meet their criteria for a mortgage and how much they are willing to lend you.
- Valuation: they will send someone to look at the property that you are buying, to make sure it is worth the amount that you want to borrow.
- Offer: all being well, they will make you a mortgage offer.
- Completion: once you have exchanged contracts for the house purchase, the lender will transfer the mortgage amount so that you can pay the seller.
What you’ll need to provide as part of your application
Most lenders allow you to do your mortgage application online, by filling out a form. You then need to sign that form to confirm that the details are correct.
Do not be tempted to fudge any of the numbers, to make yourself look like you’re in a better financial position than you are!
Along with the mortgage application form, you’ll need to provide a lot of supporting information and documents. These are the proof of the numbers you put in your application (which is why you can’t embellish any of the numbers in your form).
When you apply for a mortgage, you normally have to provide:
- Payslips (at least 3 months, some lenders ask for 6+)
- utility bills
- proof of benefits received
- P60 form from your employer
- passport or driving license (to prove your identity)
- last 3 – 6 months’ bank statements of your current account (if you have multiple current accounts, they might ask to see all of them)
- details of any loans, credit cards, other spending
If you’re self-employed, then it’s more complicated. We recommend speaking to your accountant 6 – 12 months before you apply for mortgage, so you can get your house in order):
- statement of 2-3 years’ accounts from your accountant
- tax return form SA302 if you have earnings from more than one source or are self-employed
- bank statements that support the numbers in your SA302.
Scan all your documents and put them in a file
Make it easy for yourself, so you’re not stressing about the mortgage application timeline. Collect all your documents in advance, scan them in and save them in a mortgage application folder.
Got any questions or tips?
Please share your thoughts on this article, any questions you have or tips that you want to share with others going through this process. We’d love to hear from you! Please comment below or share this on social @lifetise.
