How Long Does it Take to Get a Mortgage?

How long does it take to get a mortgage? Starting from the time you submit your application to the moment it gets accepted, the entire process could take anywhere from 17-40 days.

However, the exact time it takes for a mortgage application to be processed and received depends on the individual or specific circumstances. The simplicity or complexity of the mortgage request process makes a big difference in how quickly it will be approved.

So if you ask your prospective lender “How long does it take to get a mortgage?”, they’ll tell you to consider the following aspects:

• The time it takes to source all relevant documents you need to submit along with your application
• The time needed for completing the application form
• Whether your application is a simple or complicated one
• How quickly and effectively your solicitor or lawyers acts
• The time your mortgage broker takes to fulfill their responsibilities 
• The time it takes for you to act in response to your lender and lawyer’s demands
• The time your mortgage lender takes to process and endorse your request

Mortgage application process

Strictly speaking, a mortgage is a type of ‘secured’ loan or a line of credit offered by a lender for buying a home or property. The mortgage lender approves the loan as collateral or a security against your property.

For example, if you default on your repayments, the lender will take possession of your home. There are certain formalities or requirements that you’ll need to fulfill to ensure the approval of your mortgage request.

For instance, you’ll need to get in touch with specific professionals who’ll play critical roles in expediting your mortgage application. These professionals include the mortgage broker, conveyancing solicitor, and of course, your potential lender.

Once you’ve made up your mind to buy a piece of real estate, you’ll have to fill out an application and submit the appropriate documents along with it.

The mortgage application process comprises of several steps. Completing some could take longer than others.

After you’re through with applying, the responsibility of speeding up the process and getting your request approved shifts to third parties.

However, the third parties could contact you from time to time, requesting additional information.

Following are the integrated steps in your mortgage application process:

Estimate how much you can afford

Before you start looking for a suitable home or property, find out how much you can afford. In other words, take a close look at your finances.

This includes your earnings and income. You want to ascertain the amount you can invest comfortably.

After that, make a preliminary estimate of the maximum amount the mortgage lender, a bank or financial institution, would be ready to lend using an online mortgage calculator.

RateWise partners with mortgage lenders to find your perfect financial solution and secure your future. One of our partners is Access Financial Services, who provides mortgage solutions with as low as 1.19% APR.

Look for a suitable home

Once you have a fair idea of your financial standing, it is time to start looking for your ideal home. You can check out some reputed property websites such as Prime Location, Rightmove, Zoopla, and OnTheMarket.

You’d be better off signing up with an estate agent or property dealer who can arrange an open house in your preferred location.

Update credit reports

Though you check your credit score as a matter of course regularly, you should do it, especially when you’re applying for a mortgage. Make sure you obtain a credit report and credit score from TransUnion, Equifax, and Experian.

These are the three go-to credit reporting agencies. Since mortgage lenders use different credit rating agencies for evaluating potential borrowers’ credit history, it’s better to get your credit score from all three agencies.

In case your credit score is not up to the mark, find out the reason you have a poor rating.  It’s in your best interest to shore up your credit score at the earliest as you’ll find it challenging to secure a mortgage with a poor score.

Take your time selecting the best mortgage deal

Choosing an appropriate mortgage and then securing an AIP (agreement in principle) from your lender is the most crucial step in the application process.

First, approach the bank where you have an account and also check out offers from other banks and financial institutions.

Take your time exploring products that offers the best rate of interest. The idea is to lower your monthly EMIs as much as possible.

If you do not feel confident carrying out the research yourself, you can entrust the task to a mortgage broker.

While you’re looking for a mortgage broker, you might be tempted to ask them, “how long does it take to get a mortgage?” The mortgage broker is the right professional who can help finalize a deal and secure approval from your potential lender.

The AIP is essentially a contract between you and your lender underlying the mutually agreed terms of the loan. Bear in mind that your estate agent may not be willing to negotiate if you cannot produce an AIP.

Get in touch with your estate agent

Once you have the AIP from the lender, you can approach your estate agent for an offer about your chosen property. Do not shy away from negotiating or bargaining for a better deal if you feel the asking price is high. 

Contact a surveyor for valuating the property

At this stage, you’ll need to get in touch with a surveyor who’ll evaluate the home or property you intend to buy.

The surveyor will suggest the property survey type that’d be suitable for your home. The survey report might influence the final price you’d be willing to pay.

Your estate agent might further lower the asking price if the survey pinpoints a structural problems. In the worst possible case scenario, you may not want to buy the property if the issue is too grave.

It would help if you were prepared to forsake any fees you may have paid until that point.

Confirming the approval of the mortgage

Finally, its time to get in touch with your mortgage broker or lender for validating the mortgage. For getting the mortgage approved, the lender will charge you an arrangement fee, but it is not always mandatory.

More often, the arrangement fee is bundled with your repayments. Completing the final steps usually takes longer for most borrowers.

Your mortgage broker will help you out in shopping for a reliable conveyancer who’ll legally transfer the property rights to you from the seller.

A mortgage offer is valid by and large for about three months. Though sometimes the offer remains open for six to nine months if the property is brand new.

Nevertheless, it would help if you did everything possible to get your mortgage application approved before the offer expires.

How long does it take for mortgage to be approved?

Generally it can take about 6 weeks for your mortgage to be approved. But it does depend on your circumstances in cases where lenders need more supporting information.

Why is my mortgage application taking so long?

Mortgages are some of the largest loans given out so lenders take their time when assessing whether or not to approve borrowers.

Mortgage applications could be delayed when lenders investigate more details about the borrower’s financial situation.

How can I get approved for a mortgage in the UK?

To get approved for a mortgage in the UK you should keep your finances in top shape months before you apply. Try raising your credit score, minimizing existing debt, and 

What happens when a mortgage is approved?

Once your mortgage is approved, you can go ahead with the purchase of your new home. Make sure you keep paying your mortgage installments on time and in full to avoid any additional fees.

What happens if my mortgage application gets rejected?

If your mortgage application gets rejected it can be disappointing, but don’t lose hope.

You should take the next few months as an opportunity to get your finances in order by saving up for a downpayment, eliminating debt, and improving your credit score.

Once you’ve improved your finances, you’ll have a better chance of getting a mortgage the next time around.

Read More

• Are Credit Scores Important?
• What are Credit Cards for Bad Credit in the UK?
• How do Credit Cards works?