How to get a mortgage in the UK? – 4 “must-know” tips

Buying a UK property is not an easy task, especially if one wishes to apply for a mortgage. To avoid any purchase delay or even miss out the property of your choice, it is always best to get mortgage advice, negotiate deal with potential providers, and have a mortgage agreement prepared as soon as possible.

In this article, let’s take a look at how long it takes to get a mortgage and what you need to prepare.

Tip #1: Get a Mortgage Agreement in Principle

At COSMO, we often advise our clients to apply for a Mortgage Agreement in Principle, which states the term around what amount the mortgage provider is likely to lend you based on the personal financial information provided.  This include information such as passport, proof of address, proof of income, source of fund proof and credit history.

Tip #2: Always prepare for lead time

In terms of lead time, it typically takes about a month from application to mortgage offer, provided all the documents are ready and the application is relatively straight forward.  That said, many UK lenders tend to ask for more personal financial information to ensure borrowers are financially healthy and stable.  Therefore, if you want to check out and see how much you can borrow first, it is always good practice to start the application sooner rather than later.

Tip #3: Make sure these documents are ready

For a typical underwriting process, the lender check the following items:

  • Verify your income by salary records, bank statements or tax returns
  • Get proof of your ID and current address
  • Conduct a mortgage valuation survey
  • Assess your other financial commitments (other outstanding mortgage/loans)
  • Verify the source of funds for the property transaction

A standard mortgage offer is typically valid for up to 6 months. However, if you are applying for a re-mortgage, it may only be valid for 3 months. The difference is due to the fact that a purchase will typically take longer from application to completion.

Tip #4: Don’t miss out the deadlines

Some of the UK lenders have a completion deadline, which means if you fail to accept the mortgage offer before the deadline, you may risk to start the whole application process again.  Also, if your circumstances have changed, lender may offer a different deal based on the new assessment.

mortgage rate example

If you are interested in UK properties and wish to know more about mortgage application, please reach out to our COSMO Mortgage Specialist today at mortgage@icosmo.co.

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