How to Get a Mortgage

Securing a mortgage can be one of the most important financial commitments you make in your lifetime. Whether you’re a first-time buyer, moving home, or considering investing in property, understanding how to get a mortgage is key to a smoother homebuying experience. With various mortgage types, lending criteria, and paperwork involved, it’s helpful to be well-prepared before beginning the mortgage application journey.

 

What Is a Mortgage?

A mortgage is a legal agreement by which a bank or building society lends money to an individual or couple to purchase a property. The loan is secured against the property, which means the lender may take ownership if repayments are not maintained. Mortgages are usually repaid over a long term, typically 25 to 30 years, although shorter or longer terms may be available depending on the circumstances.

 

How to Get a Mortgage: Step-by-Step Guide

1. Assess Your Financial Situation

Before approaching lenders or comparing mortgages, it’s important to assess your current financial standing. Lenders will evaluate your affordability based on your income, outgoings, debt commitments, and credit history. Make sure you review your credit score and correct any inaccuracies with credit reference agencies such as Experian, Equifax or TransUnion.

 

It’s also helpful to start budgeting early. Understand how much you can afford to borrow by calculating your monthly expenses, including bills, food, insurance, transport, and discretionary spending. Knowing your budget helps you identify a realistic price range for property searches.

 

2. Save for a Deposit

The next step is saving for a deposit. Most lenders in the UK require a minimum deposit of 5% of the property’s value, but putting down a larger deposit – such as 10%, 15% or 20% – can give you access to a wider range of deals. Generally, the higher your deposit, the lower the interest rate you may be able to access, depending on your financial situation.

 

For example, if you’re buying a property worth £200,000, a 10% deposit would be £20,000. The remaining £180,000 would be borrowed from the lender and repaid with interest over the mortgage term.

 

3. Understand the Different Types of Mortgages

There are several types of mortgages available, and the most suitable option will depend on your individual circumstances. Familiarising yourself with the main types can help you prepare for lender discussions:

 

• Fixed-rate mortgage: Your interest rate stays the same for a set period, typically 2, 3, 5, or even 10 years. This provides budgeting stability as your monthly repayments remain the same.
• Variable-rate mortgage: Your interest rate can change, meaning monthly payments may go up or down. These are usually linked to the lender’s standard variable rate (SVR).
• Tracker mortgage: A type of variable mortgage that follows an external rate, usually the Bank of England base rate, with a set percentage added on top.
• Offset mortgage: Links your mortgage to your savings account. Instead of earning interest on your savings, the money is offset against your mortgage, reducing the amount of interest charged.

 

Each mortgage type has its pros and cons, and it’s worth reviewing all options carefully to understand which may suit your situation best.

4. Check Your Credit Report

Your credit history plays a major role in your mortgage eligibility. Lenders will assess your credit report to understand your financial behaviour, including how reliably you’ve repaid past debts and whether you’ve ever defaulted or had accounts in arrears.

 

You can check your report for free through services like ClearScore, Experian, or Equifax. Aim to identify and resolve any issues, such as incorrect addresses, old accounts, or fraudulent activity, before applying for a mortgage.

 

5. Estimate How Much You Can Borrow

Lenders calculate the maximum amount you can borrow based on factors like income, existing debts, dependents, and outgoings. As a general rule, many lenders offer a loan between 4 and 4.5 times your annual income, although this can vary.

 

For example, if you earn £40,000 per year, you could be eligible to borrow around £160,000 to £180,000. However, lenders assess each application on its own merits, and affordability checks have become stricter in recent years following regulatory changes introduced by the Financial Conduct Authority.

 

6. Get a Mortgage Agreement in Principle

A mortgage Agreement in Principle (AIP), sometimes called a Decision in Principle, is a statement from a lender indicating how much they might be prepared to let you borrow. Though not a formal offer, it can give you a better idea of your budget and show estate agents and sellers that you’re a serious buyer.

 

Getting an AIP usually involves a soft credit check and requires you to submit some basic income and expenditure information. It’s typically valid for 30 to 90 days.

 

7. Compare Mortgage Deals

Once you have an idea of how much you can borrow and what deposit you can provide, the next step is to compare mortgage deals. This is where mortgage brokers can help you save time and effort by reviewing available products that match your criteria. They can also help you understand the differences between fees, interest rates, and repayment structures, ensuring you have all the information to make an informed decision.

 

Mortgage deals often come with additional costs, such as:

 

• Arrangement fees – charged by the lender for setting up the loan.
• Valuation fees – for a basic property assessment by the lender.
• Legal fees – paid to solicitors for conveyancing.
• Booking fees – paid upfront to reserve the deal.

 

Be sure to compare the entire cost of a mortgage, not just the interest rate, by reviewing the Annual Percentage Rate of Charge (APRC).

8. Gather the Required Documents

You’ll need to provide a range of paperwork to support your application. Lenders will typically ask for:

 

• Proof of identity (passport or driving licence)
• Proof of address (recent utility bill or council tax statement)
• Three months of payslips (or two to three years of accounts for self-employed applicants)
• Three to six months of bank statements
• Details of debts and regular outgoings
• Evidence of deposit (savings account statements, gifted deposit letters if applicable)

 

Having documents organised early can help speed up the process and reduce the chances of delays.

9. Submit Your Mortgage Application

Once you’ve chosen a mortgage product, the full application process begins. Your lender will assess all documentation, conduct a full credit check, and typically carry out a property valuation.

 

If everything is satisfactory, you’ll receive a formal mortgage offer. This is the official document confirming the details of the loan, including interest rate, term, and conditions. Mortgage offers are commonly valid for up to six months.

 

10. Completion and Repayment

After receiving your mortgage offer, your solicitor or conveyancer will work towards completion. This includes final searches, exchanging contracts, transferring deposit funds, and finalising property ownership.

 

Once everything is completed and funds are released, you become the legal owner of the property. You’ll then begin making monthly mortgage repayments, which include interest and capital. If you have an interest-only mortgage, you’ll need to have a repayment plan in place for the loan amount at the end of the term.

 

Common Challenges When Applying for a Mortgage

Securing a mortgage is not always straightforward. Here are some common issues applicants may face:

 

• Low credit score: Missed payments or high levels of unsecured debt can affect your eligibility.
• Unusual income: Freelancers, contractors, and self-employed applicants may be asked to provide more documentation.
• High debt-to-income ratio: Lenders may be cautious if a large portion of your income is used to repay debts.
• Small deposit: A low deposit can limit options and affect interest rates.
• Property type: Non-standard properties, such as flats above shops or listed buildings, might require specialist lending.

 

Tips to Improve Your Chances of Getting a Mortgage

• Review and improve your credit score ahead of time.
• Pay off or reduce non-essential debts where possible.
• Maintain steady employment and avoid job changes close to the application date.
• Save for a larger deposit if possible.
• Keep spending stable in the months before applying.

 

How Long Does a Mortgage Application Take?

The timeline for getting a mortgage varies depending on individual circumstances and lender turnaround times. In general, the process from application to offer can take between 2 to 6 weeks. The full house-buying process, including conveyancing and completion, may take 8 to 12 weeks or longer.

 

Final Thoughts

Learning how to get a mortgage doesn’t have to be overwhelming. By preparing in advance, understanding what lenders are looking for, and gathering the right documentation, you can reduce the chances of delays or surprises. Working with a mortgage broker can help ease the journey by reviewing your options and helping you explore suitable deals, making the mortgage process as straightforward as possible.