How will I know if my mortgage is approved?

Here is a non-exhaustive list of things that could affect your mortgage application process: Self-employed - you need to follow a more rigorous process to prove your income if you are self-employed - Read our article one what you will need to do when you are self-employed Negative credit score - if you have a bad credit score you may be limited in the number of mortgage lenders who will agree to lend to you. Gambling or pay day loans on your credit file - these can act as a red flag to a mortgage lender and will also reduce the number of mortgage lenders who are prepared to lend to you. Joint mortgage sole proprietor mortgage product - the process for this type of mortgage is more rigorous and will require the parties on the mortgage but not on the mortgage title to seek separate legal advice before the mortgage offer will be issued - Read our article explaining the process when getting a Joint Mortgage Sole Proprietor mortgage product Bank undervalued property - whether it is due to a defect or the property was over priced by the selling agent, if the mortgage lender's surveyor doesn't value the property at the same amount as you have agreed with the seller then you could be faced with losing the property.Read our article here to find out what to do when the bank undervalue your property.

How long does it take for a mortgage to be approved?

Generally it takes between 2 to 6 weeks from application to approval. However, this does not include the time from mortgage in principle to application. You should be able to get all of the required searches and surveys complete within this time. But it's worth checking when you apply, whether there are any delays at the local authority, for example, which could push things back.

What are the stages of a mortgage application?

First, you apply with one or more lenders for a 'mortgage in principle'. This is an estimate of how much money they would be willing to lend you. Once you know how much you can spend, you shop for houses, put in an offer and hopefully, your offer is accepted. Once the offer has been accepted by the buyer you can: 1Instruct a conveyancer 2Submit your mortgage application 3Arrange your mortgage valuation 3Arrange your conveyancing searches When the lender has all of the above information, (as well as proof of your income and a full check on your credit score) they will decide whether to give you your mortgage offer. In rare cases a mortgage offer can be withdrawn at any time up until completion.

How long does it take from mortgage offer to completion?

Your mortgage offer is valid for up to 3-6 months. Some lenders can start to count this from the moment you first apply, so you will need to set a date for exchange of contracts. You can discuss this with the seller. The norm is that 2 weeks after exchange of contracts, you can complete your purchase. If needed, you can do this more quickly or wait longer. If needed, you might also be able to get a mortgage offer extension.

Book a free consultation with our mortgage brokers, who have access to the whole market and can advise you which mortgage products are appropriate for you.

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Mortgage Process Timeline

by:

Andrew Boast

(Last Updated: 14/04/2023)

Created on:

09/12/2019

Read by:

12,179

9 min read

Key Takeaways

The mortgage process timeline involves three stages - decision in principle, valuation and offer.
Your application can be withdrawn at any stage if your circumstances change for any reason.
You will be responsible for paying for the mortgage valuation, which is done for the lender's benefit. This is meant to settle if the property is worth as much as they're willing to lend you.

What is the mortgage process timeline? If you don't have enough money to buy a home with your own cash - and most people don't - you'll need to secure a mortgage loan. Following the mortgage process steps, you need to apply to a lender for one and you should expect questions about your financial affairs, as well as to be able to produce evidence that you'll be able to pay the loan back.

If your application is successful, three stages follow before you are granted your loan. These are:

1

Mortgage Agreement in Principle - This is also called a Decision in Principle DIP or Approval in Principle - AIP

2

Mortgage Valuation

3

Mortgage Offer

A decision in principle is a non-binding estimate of how much the lender is willing to lend you. This is based on your annual income and a preliminary credit check. Most banks will only do a 'soft' credit check at this stage.

The benefit of a decision in principle is it confirms what the bank will lend you, based on your deposit and income - most commonly your salary, but pensions, property income and share income is taken into consideration.

This article explains what happens at each of the three stages and offers tips and guides on how the mortgage application process timeline works, so that you can go through it as smoothly as possible.

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1

Apply for a mortgage agreement in principle

Once you have chosen a mortgage lender, you'll first need to apply for a mortgage in principle. If you are successful, your lender contacts you to tell you that you've received a mortgage agreement in principle. This stage can take anywhere from a couple of hours to 1-3 days.

You may think that the mortgage application process is over, however, this is only the first step completed in the mortgage process timeline and you are still a few weeks away from getting your mortgage offer.

A Mortgage in Principle is when a lender tells you that it is prepared to lend you, in principle, a defined sum, towards buying a property. It is 'in principle' because the lender then has to value any property which you have an offer accepted on, to decide whether the home is worth the money that is asked for it. It's dependant on your household income, as well as affordability based on the Mortgage Market Review criteria.

If you are getting a gift or a loan from a parent or friend then you need to declare this to your mortgage lender at the earliest stage possible, as it could affect whether they will lend to you or not. If you aren't sure whether the money is a gift or a loan then read our article - Is it a gift or is it a loan?

What should you do after receiving a Mortgage in Principle?

You are now able to move on to the next mortgage process steps and look for properties you like and are able to buy, all limited to the sum the lender has offered you in principle or your own resources. Once you have found a property you like, you put in an offer to the vendor. Once you've had an offer accepted - congratulations! - you then book your Mortgage Valuation.

FREE Pre-Mortgage checklist

2

Book your Mortgage Valuation

You must pay for the mortgage valuation with your mortgage lender, in which your lender sends a surveyor to the property to inspect it, to see if its value is consistent with the sum the lender is prepared to offer you.

If the lender decides, after the surveyor has delivered their valuation report, that the property is not worth the money or it has defects, it may either refuse to lend you the money on that property or set conditions which you must fulfil if they are to lend. It might, for example, stipulate that you have to carry out, at your expense, a Pre-Purchase Survey to examine an issue it has found.

Issues can include subsidence, radon gas or drainage problems. Once again, if this survey indicates many problems, the lender can refuse to lend on the property.

Is a Mortgage Valuation the same as a home buyers survey?

No, the valuation is done purely for the lender's benefit and focuses mainly on establishing a property's market value. The latter involves you booking a surveyor, who works on your behalf, to establish if the property you've set your heart on has any defects. If there are, you can bargain with the vendor to contribute towards or even pay all of the costs of remedying any issues or even choose to pull out.

We always advise you to get a house survey. You are probably about to spend the largest sum of money you've ever spent in your life and ideally need an expert opinion on whether your property has any issues which might prove exorbitant to fix further down the line.

If you need a RICS Building Survey or HomeBuyer Report then call our team now on 0333 344 3234, or:

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At what stage does a mortgage get rejected?

Once your mortgage valuation survey has taken place and the surveyor has returned their report to the lender, the lender either agrees to grant you a mortgage, tells you that it will grant it under certain conditions or refuses to grant you the loan for that property, in which case you can either appeal or look for a fresh home to buy.

At this stage of the mortgage application process timeline is when you usually gets rejected. However, please note that you can get rejected at any stage and that your offer can also be withdrawn, should your circumstances change in any way.

3

What is the process of getting a mortgage offer?

If a lender is satisfied with the Mortgage Valuation report, it then tells you and you receive your Mortgage Offer. This is a highly important stage which you must reach before you can exchange contracts with the vendor. Unless you are a cash buyer, a seller will pull out of dealing with you if you can't prove that you will be lent enough cash to cover the agreed purchase price.

The mortgage offer is unlikely to be rescinded, unless it is found out through the conveyancing process that there is a legal issue or if any of the information provided to the mortgage lender is incorrect.

The solicitor acts for the mortgage lender and satisfies their requirements, which are shown in the mortgage offer and also the Mortgage Lender's Handbook.

Mortgage lenders will also require you to buy property searches before they agree to give you a mortgage. What searches they require are also set out in the Mortgage Lender's Handbook.

Usually, the mandatory searches are Local Authority, Environmental, Chancel and Water & Drainage Search. In some cases, you might be asked for additional conveyancing searches.

Frequently Asked Questions

APPROVAL

HOWLONG

AFTER

COMPLETION

SAM Conveyancing has negotiated a FREE Mortgage Consultation with our panel mortgage broker. This allows you a free mortgage consultation to discuss your specific requirements and provide mortgage opportunities for the Service being requested. If you want to proceed with a formal mortgage application through your mortgage broker, then a mortgage application fee maybe payable. If there is a fee to pay for your mortgage application, it will be explained to you at the point of discussing your mortgage options.

You can disengage the services of your Mortgage Broker before making a formal application, and no fee will be levied.

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SAM Conveyancing is an approved partner of Advies Private Client, and this page is an advertisement for them. SAM Conveyancing does not provide or arrange mortgage advice, but we may receive a commission for any product you take with Advies Private Client after we introduce you to them.

The FCA does not regulate SAM Conveyancing and does not provide any insurance or mortgage products, nor can we provide any advice on different insurance or mortgage products. Please liaise with your chosen Advies Private Client for any insurance advice.

Written by: Andrew Boast

Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.

Reviewed by: Caragh Bailey

Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.