You’ve taken the big step of submitting your mortgage application—congratulations! But what happens next? For many, this part of the process can feel like a bit of a mystery.
Let’s take a closer look at what goes on behind the scenes, what you can expect, and how you can help keep things moving smoothly.
- Acknowledgment of Your Application
Once you’ve submitted your application, the lender will acknowledge receipt, often through an email or letter. This acknowledgment might include:
- Your application reference number.
- Contact details for your lender or broker.
- A summary of the next steps.
At this stage, you don’t need to do anything except stay patient and wait for updates. If you’ve applied through a broker like HLC Mortgages, we’ll keep you informed every step of the way.
- Initial Assessment by the Lender
The lender’s underwriting team will now begin reviewing your application. This involves:
- Checking Your Documents: They’ll verify the documents you provided, such as payslips, bank statements, and proof of ID.
- Reviewing Affordability: They’ll ensure your income and outgoings match the lender’s affordability criteria.
- Performing a Credit Check: Your credit history will be scrutinised to assess your ability to manage debt responsibly.
💡 Tip: Double-check your documents before submission. Missing or incomplete information can cause delays.
- Valuation of the Property
Once the lender is satisfied with your application, they’ll arrange a property valuation. This ensures the property is worth the amount you’re borrowing.
- Types of Valuations: Some lenders use automated valuations, while others require a physical inspection by a surveyor.
- What They’re Looking For: The valuation confirms the property’s market value and checks for any issues that might affect its resale value.
Important Note: A lender’s valuation isn’t the same as a structural survey. If you’re concerned about the property’s condition, you may want to arrange a separate survey, such as a Homebuyer Report or a Full Structural Survey.
- Underwriter’s Final Decision
After the valuation, the underwriter reviews all the information to make a final decision. This is a critical stage where the lender decides whether to approve, decline, or request additional information.
Possible outcomes include:
- Approval (Mortgage Offer): Congratulations! If your application is approved, you’ll receive a formal mortgage offer.
- Request for Further Information: The lender might need more details, such as additional payslips or clarification on something in your credit report.
- Decline: If your application is declined, don’t panic. Your broker can help you understand why and explore alternative lenders.
💡 Tip: Respond quickly to any requests for additional information to avoid delays.
- Issuing the Mortgage Offer
If all goes well, you’ll receive your official mortgage offer. This document confirms the lender’s agreement to lend you the specified amount under the agreed terms.
- Key Details in the Offer: Your interest rate, monthly repayments, term length, and any special conditions (e.g., home insurance requirements).
- Validity Period: Mortgage offers typically remain valid for 3 to 6 months, giving you time to complete your property purchase.
Take time to review the offer carefully. If anything seems unclear, your broker can explain it in plain terms.
- Conveyancing Process
Once you have your mortgage offer, the legal process begins. This is where your solicitor or conveyancer steps in to handle the transfer of ownership and ensure everything is in order.
- Searches: They’ll conduct property searches to check for issues like local planning constraints or flood risks.
- Drafting Contracts: Your solicitor will draft and review contracts, ensuring the terms of the sale are fair and legal.
- Exchange of Contracts: Once everything is agreed, you’ll exchange contracts with the seller, making the sale legally binding.
💡 Tip: Stay in touch with your solicitor to keep the process moving smoothly. Any delays on their end could impact your timeline.
- Completion Day
The big day has arrived – completion! This is when the property officially becomes yours.
- Funds Transfer: Your lender releases the mortgage funds to your solicitor, who transfers them to the seller’s solicitor.
- Keys Handover: Once the funds are received, you’ll get the keys to your new home.
Congratulations, you’re now a homeowner!
How Long Does the Process Take?
From application to completion, the mortgage process typically takes 6 to 8 weeks, but this can vary depending on factors like:
- The complexity of your application.
- How quickly documents and information are provided.
- Delays in the conveyancing process.
Your broker can help keep things on track by liaising with the lender, solicitor, and other parties involved.
How to Make the Process Smoother
- Be Prepared: Have all your documents ready before submitting your application.
- Stay Responsive: Reply promptly to any requests from your broker, lender, or solicitor.
- Choose the Right Broker: Working with an experienced mortgage broker like HLC Mortgages can make all the difference. We handle the heavy lifting and keep you informed at every stage.
Final Thoughts
Submitting your mortgage application is just the start of an exciting journey to homeownership. While the process may seem complex, understanding the steps involved can help ease any anxiety. Our team are here to guide you every step of the way, ensuring the process is as smooth and stress-free as possible.
If you’re planning your next move or have questions about your mortgage application, don’t hesitate to get in touch. We’re always happy to help!