Applying for a mortgage may seem like a daunting task. There is a lot to consider. Let's take a look at the process, being prepared will help make the application go as smoothly as possible.

30 Nov 2023

How to get a mortgage!

What are the steps in a mortgage application? well, for starters, you'll need to provide a lot of information and complete a lot of forms.

Let's look at the complete process so that you can get prepared and plan your application.

How much money can I borrow?

How do I work out my budget?

Are you mortgage ready?

Get your documents together

There are quite a lot of documents that are required when applying for a mortgage, it’s a good idea to gather important paperwork and have it ready to avoid delays in the process.

Proof Of Identity – It can include a driving license or passport. Ensure the address on your driving license is up to date because an old address can lead to complications.
Proof Of Address – You’ll need to provide at least two documents as proof of address. They can include a utility bill, bank statement, credit card statement or council tax bill. They must be dated within the last three months, and your name needs to be spelt consistently and correctly.
Proof of benefits received
Proof Of Employment - P60 form
Last three months’ payslips
Bank statements of your current account for the last three to six months

And if you're self-employed

Statement of two to three years’ accounts from an accountant if you’re self-employed
Tax return form SA302 if you have earnings from more than one source or are self-employed

Do I need a mortgage agreement in principle (AIP)?

It's a good idea to get an ‘agreement in principle’ or ‘decision in principle’ from a mortgage lender before making a formal mortgage application. As the name suggests, this involves a lender agreeing ‘in principle’ to offer you a mortgage of a certain amount. To do this they will look at your income and usually just carry out a preliminary ‘soft’ credit check, which won’t affect your credit score. An agreement in principle isn’t a promise or guarantee of a mortgage but it gives you a fair idea of how much you might be able to borrow.

Having an AIP shows sellers (estate agents) you’re serious and ready to buy. Some estate agents will insist you have an AIP before they’ll show you their properties for sale. An AIP can also help you negotiate and give you an edge against competitors when making an offer to buy a property.