How Long Does a Mortgage Application Take

How Long Does a Mortgage Application Take

12 Jan 2024

Approval typically takes up to 14 days from submitting the mortgage application. A mortgage agreement, in principle, tells how much a lender is willing to lend you for the mortgage. It confirms that the mortgage lender will deliver the funds when you buy a home. You also get an idea of the budget, and you can show the budget to the estate agents and new home builders. 

The agreement is a stepping stone in the process of initial contact with the lender and the selected lender's final, binding mortgage offer. It aims to guide the borrower and provide validity to the offer when they find a home they want to buy. 

How Long For Mortgage Approval?

For first-time buyers, it can be a daunting process to get mortgage approval for house buying. The process may appear laborious, complicated, expensive and plagued by requests for non-returnable bills. So, the best way to buy a home is to prepare beforehand and have a secured mortgage as you start the search.

The buyer may target quick purchases, so the chance for the sale to fall through is less. In England and Wales, the agreement to purchase is subject to contract, and it can take several weeks for the process to line up all the legal and fund transfer formalities required before the sale proceeds to completion to get the house ownership. 

Mortgage In Principle - A mortgage in principle is issued by the lender when they establish your credit history, check the details on the mortgage application, and estimate the maximum mortgage and loan percentage they will accept. Once the seller accepts the offer, the solicitor starts a local search and contacts the mortgage broker to put the details on paper.

To get an agreement in principle, you are required to provide a lot of personal details. The information you provide must be accurate, as the information will be the basis of the lenders' mortgage. Any discrepancies will result in the offer being withdrawn, delayed or changed entirely. 

What Is A Mortgage Agreement In Principle?

To get a mortgage agreement in principle, you provide the mortgage broker or the lender with information about your earnings and finances, and you can get an Agreement in Principle online through a lender's website or visit a local bank. You will likely get the response within 24 hours, or it can be quick, like 15 minutes. 

A mortgage Agreement in Principle, also known as a Decision in Principle, is valid for up to 90 days, and it is up to the lender; it can take as little as 30 days, but it can take longer to get a perfect home. An AIP does not guarantee that you will get a mortgage; you need to go through the mortgage application process, and the lender will use the information to get the AIP as part of the full application process. Also, they will ensure the details are correct. 

What is a Decision in Principle?

A mortgage in principle is also known as a Decision in Principle (DIP), mortgage promise, or agreement in principle (AIP). The statement from the lender states they will lend a certain amount before you have finalised the house purchase.

If you are buying a property, you need a mortgage agreement in principle to show sellers that you will likely be able to afford the property before you submit a bid. It could help if you are choosing between more than one buyer. If you are worried about poor credit, a mortgage, in principle, gives you an idea of whether or not a lender thinks you can afford to repay your home loan. 

If you formally apply for a mortgage, the lender can change the deal's details, and they may decide not to grant a loan in certain situations. Sometimes, the financial circumstances change, or there is a long period between getting a mortgage principal and applying for one. The interest rates may change, or you may get a better deal from another provider.

Once you find the mortgage provider accepts a property, you can apply to borrow more, or you will be required to complete a full mortgage application. If your application is successful, you can make the mortgage offer official. The official mortgage is based on the amount you requested in the mortgage application. 

A decision, in principle, is a certification that makes it easier to search for properties or buy a home. A DIP is the confirmation from the mortgage lender about how much they are willing to lend for the mortgage. 

How Long Does a Mortgage Application Take Through a Broker?

It takes time to process a mortgage application, and the time taken depends on various factors. The MIP is a written estimate from the lender that tells how much the lender will lend.

  • It is a quick process that helps determine the property's value for which you can get a mortgage. Then, you apply for the mortgage by filling in the following details – valid ID, details of the new property, proof of current address and payslips of up to six months. 

  • Before the lender approves the mortgage, the property valuation is carried out to ensure the property is valued at the amount you borrow. 

  • Once the lender is satisfied with the information, they decide whether to proceed with the final mortgage offer and then the mortgage application is accepted; the solicitors take all the conveyancing searches and draft the contract to ensure the financial arrangements are in place. 

  • It is a quick process where the lender runs some basic checks, and then you need to provide the documents and discuss the specifics with the mortgage broker. 

  • There are two ways you can get an agreement in principle. You can contact a mortgage broker, check out the deals you might be eligible for, or go directly to the lender.

  • A mortgage broker can speed up every aspect of the mortgage application process. The main benefit of contacting a broker is that you can search for a mortgage likely to be approved. It saves time and reduces the risk of delays in approval or harming the credit rating.

  • The broker knows the lenders' requirements, and then they can explain to the applicant which documents will be required, such as payslips, bank statements, etc. A mortgage broker can speed up the administration work and ensure all the required documentation is ready on time.

  • If you hire a mortgage broker, communication with the solicitor becomes more efficient, and one can chase outstanding conveyancing and resolve any conveyancing issue, such as local area searches where the broker has experience with other applicants.

How Long Does a Mortgage Application Take to Be Approved in the UK? 

The time taken for approval varies from one lender to the next, and the average time to complete the form is three to six hours. 

It will be quicker if one applies as a continuation of the agreement in principle instead of starting again with a new lender. It can be quicker to get the approval if you complete the application through a broker, as they will do the paperwork on your behalf. 

In addition to the documentation required for the mortgage agreement in principle, you need – three to six months' worth of utility and council tax bills, a P60 form from the employer, proof of earnings in the last three years (self–employed can provide their business accounts), address and estate agent details for the property you want to buy, details of the outgoings, insurance policies, travel  & entertainment, childcare and other costs, proof of additional income, credit card and personal loan statements. 

Once the mortgage application is submitted, the lender reviews the documents and conducts a hard search of the credit record, which is then recorded on the credit file. 

The lender's underwriters will look at your borrowings records and how reliably you have repaid the financial obligations in the past. A property valuation survey must be arranged, and you must provide the solicitor's details. 

A valuation survey is carried out by an independent surveyor whom the mortgage provider appoints, and they carry out a series of structural stability checks and review the housing market to check if the chosen property is worth the mortgage loan

Most surveyors submit the report in 24 hours, and the underwriters review the reports alongside the other supporting information to get a final decision on the property value. 

Most surveyors complete the report in 24 hours, and the underwriters review it to determine the property value. 

How To Get a Mortgage?

Before a mortgage lender approves a mortgage, one must conduct a property valuation by someone appointed by the lender that allows them to check the property valued at the borrowing amount. It protects the lender from losing money, and the buyer must pay for the valuation, or it is included in the mortgage services

The valuation can be carried out in two days to a week, though it depends on the surveyor's schedule. The valuation can be done in less than half an hour, depending on the property size.

The property survey takes longer and may include a thorough assessment of the property condition, which is completed after the mortgage application is processed and approved. 

After the mortgage valuation is completed, the mortgage will shortly follow.

How Long Does a Mortgage Application Take to Be Approved Nationwide?

On average, once you have submitted a mortgage application in the UK, it takes four to six weeks for the lender to approve it. It does not mean you have months to convince lenders if you are eligible for a mortgage. 

Multiple factors affect the lender's decision, specifically when you have a full application with lending criteria, a change to interest rates, or changed personal circumstances. 

Getting a mortgage, in principle, is useful as it indicates you can afford to buy the property. 

A Nationwide mortgage, in principle, is valid for 90 days, and you can use it to apply for a mortgage immediately. So you get your Decision in Principle confirmation email from a nationwide site linked to your mortgage application hub.

When applying for the Decision in Principle, you must tell about your address history( back three years), income, salary, bonus, pensions, credit cards, loans, finance, outgoings, travel costs, school fees and other expenses. 

How Long Does a Mortgage Application Take Halifax?

The Halifax mortgage application process takes one to six weeks, depending on various factors, and the process of applying should take a few hours. 

Mortgage Application Process

The mortgage process timeline includes the following steps – 

  • Searching for the best mortgage takes one day. You can get a broker or use a fee-free broker to find the best deals. You can contact the lender or get an appointment in the branch over the phone.

  • The next step is to get a mortgage agreement in principle, which you can get instantly. 

  • Then, you must fill out the mortgage application, which takes 20 minutes, and you get a mortgage offer in 2 to 4 weeks. 

  • It takes two weeks to carry out a home valuation, and then you can get a mortgage and exchange contracts. 

  • The time it takes to release mortgage funds varies by lenders; it is common for funds to be released in 3 to 7 days. 

  • You can speed up the mortgage application process by using a mortgage broker. A standard mortgage offer is valid for 6 months, and a mortgage is valid for three months. 

Filling out the application does not take long, but you must ensure you have all the right documents. You can contact a mortgage broker to submit the documents and complete the administrative tasks, speeding up the application process. A MIP does not guarantee borrowing the stated amount; if you have a poor credit history or mismatched income, there is a low chance of getting the lending. 

Depending on the credit report, you can get different mortgages. If there are credit details that the lender needs to be made aware of or if there are missed payments or adverse credit, it could mean the mortgage application is declined. If multiple lenders reject you, you can get different mortgages with higher interest rates. 

The time it takes depends on how quickly the surveyor sends the valuation documents to the lender. 

So, it can take a few hours or a few days to complete the mortgage approval process. The mortgage applicant often gets the approval in 2 to 20 days after the valuation is completed. Once the mortgage application is accepted, the solicitor has a lot of work. They must review the draft contract and discuss the concerns with the sellers' solicitors.

If there are delays between getting the mortgage offer and completing the property purchase, it could lead to the mortgage offer expiring. Hence, contacting a solicitor who can complete the process in time is necessary. Typically, the mortgage offer lasts six months and can vary from one lender to another. 

Natwest Tracker Mortgage

Natwest tracker mortgages are variable rate products that track the National Westminster Bank Plc base rate. You are paid a standard procurement fee for new or existing business tracker cases.

To switch to a Fixed Rate mortgage, you can use the Product Transfer system, and one can do this once the tracker mortgage has drawn down; there will not be any re-credit scored, and you need to pay a standard product transfer procuration fee.  

How Long Does It Take to Get a Mortgage?

In principle, getting a mortgage can take up to twenty-four hours. An MIP is a certificate that shows how much you can borrow. It processes to the sellers and the estate agents that you are eligible to get a certain amount of mortgage; though it can take over 24 hours to get approval, one can get it in less than 10 minutes. 

To get a mortgage, you require information about your income, expenses, and how much you have saved for a mortgage deposit

A broker handles many client application paperwork and helps get the documents checked. It may take longer for the applicant if they are trying to do it alone. The mortgage lenders give you a point of contact if you have any queries, and if you are working with a broker, they will handle the required communication and keep the person updated on the application's progress. 

A mortgage approval process can take weeks to complete, but once you finish, you will get a formal mortgage offer from the lender about the approval of the application, or you can get a mail or a message from a broker. 

Why Is My Mortgage Offer Taking So Long?

There are many factors which can delay the mortgage process in the UK -

Errors in filling out the application form and a poor credit history can delay the mortgage process in the UK. You can inform a broker or the lender before you apply if you are concerned about the credit file to avoid uncovering unexpected problems, or contact the broker to know more about how to fill in the details accurately to avoid delays. 

You can avoid delays by improving your credit status, collating the required documents, and ensuring the details in the documents are up-to-date and accurate. You should contact the solicitor and mortgage provider and respond promptly to requests for additional forms, documents, or information. 

How Long Do Mortgage Offers Last?

A standard mortgage offer is valid for six months, but not all lenders use the time validity similarly. Remortgage offers are valid for three months as the property does not need to be purchased; hence, the mortgage in the UK is shorter.

When Should I Apply for A Mortgage?

It is advised to start applying for a mortgage before seriously looking for a property. Start early on searches and get pre-approved for a mortgage between 1 and 4 months before buying a home. 

Why Is My Mortgage Application Taking So Long UK 2022?

The mortgage application takes time in case you fill in the wrong data, such as –

  • An inaccurate address can affect your credit rating if the ID verification is not connected to the existing address on the electoral roll. It also applies to bank statements, bills and driver's licenses. 

  • Incorrect personal information where you changed your name or identity due to personal circumstances. Sure the name and details are accurate. 

  • Missing documents can lead to delays in approval. 

  • Problems with the property, or if the surveyors found some issues during the valuation, must be resolved before the application can progress. 

  • Delays in the members of the home buyers and sellers chain where one has accepted an offer and others are struggling to sell. 

Does A Mortgage in Principle Affect Credit Score?

Lenders check the credit score when someone applies for a mortgage in principle. Some lenders make soft searches where the soft search records the credit checks as enquiry; some lenders may seek hard searches where your record is marked as you have made a credit application.

Too many searches on credit reports show you have been facing difficulty repaying loans. You must check with the lender if they want a soft or hard search before applying for a mortgage in principle.

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