The amount of time it takes to get a mortgage depends on a variety of different factors including:
- The type of mortgage being applied for i.e. a remortgage or a purchase
- The time it you takes to gather the necessary documentation for the application
- The turn-around time of the mortgage lender
- The turn-around time of your conveyancer
- The complexity of the mortgage application
Typically, the process begins by getting a Mortgage Agreement In Principle. The mortgage lender will perform a credit search and agree a figure that they would be willing to lend you for mortgage purposes. However, this is not guaranteed and a full assessment will have to be made before a lender can issue a mortgage offer. For purchases, an agreement in principle is a good way of showing the estate agents and vendors that your offer is credible.
A mortgage application will then have to be submitted with the lender in order for them to fully assess your affordability and circumstances. They will take in to consideration:
- Your income – the majority of lender will want to see evidence in the form of payslips or self-assessments if you are self-employed. This will help them decide what monthly mortgage repayments you can afford.
- Your outgoings – evidenced by bank statements, lenders will need to get an idea of what you spend per month and what on.
- A valuation of the property – this will confirm the property value and whether it’s a suitable property to mortgage against.
How long does it take to get an mortgage offer?
After the lender has reviewed the above, a formal mortgage offer will be produced providing they are satisfied. The amount of time it takes to get to this stage depends on the overall complexity of the application. In general, it will take between 18-40 days for the processing of the mortgage application and an offer to be produced.
Gathering your required documents efficiently and staying in regular contact with your mortgage broker, lender and conveyancer are all ways of which you can ensure that the process runs smoothly and in a timely manner.