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Get a call back layer. You are using an unsupported browser version. For many people, getting approved for a mortgage can be straightforward and not the daunting experience some fear.
But certain factors can make the application process more difficult. If the mortgage is easily affordable, your income is straightforward, you have enough deposit and clean credit history, then you are likely to be approved by most mortgage providers.
However, if you have something even slightly off centre you may struggle to find the right mortgage lender willing to approve your application. If, for instance, you have adverse credit , are self-employed, are buying a property deemed to be non-standard construction or are simply in unique circumstances, you may find it harder to find a lender.
The specialist mortgage brokers we work with know how to find the right lender, whatever your situation. For a rough estimate of how much you could borrow, try out our mortgage approval calculator tool:.
As you can see, finding the right lender can make a significant difference to the amount you can borrow. This is because specialist brokers have access to more lenders than typical high street brokers, and will have access to more deals. For an accurate mortgage calculation, speak to one of the experts we work with. They will be able to take into account all the factors which alter what a lender might be willing to offer you.
For some people, there may be more to do to get a mortgage approved. However, as a general rule the five-step process below is the process you should expect when making a mortgage application in the UK:. This has created gaps in the market where creditworthy customers are unable to find the mortgages they need. Thankfully, in the years since the market began to recover, old and new specialist mortgage companies have blossomed, resulting in some criteria relaxation.
With so many lenders only offering mortgages to customers who fit a very specific profile, more people are finding the need to go beyond the high street to find specialist mortgage lenders. The brokers we work with are expert whole-of-market brokers with experience of helping customers find the right mortgage and lenders who are willing to look at borrowers with more unusual circumstances.
These brokers arrange lots of mortgages, getting top rate deals for customers without issue. And many of them are very good at it. Typically, the broker will do some research into banks and building societies on the rates tables until they find one to fit.
A specialist broker, someone who handles these types of application on a daily basis, already knows how to get a mortgage approval before the customer even walks through the door. Ask us a question about mortgage pre approvals and we'll get the best expert to help. If your application is straightforward, you could get mortgage approval in one or two weeks.
However, if your situation is more complicated, you may be in for a longer wait. The majority of mortgages take between 18 and 40 days from receipt of your application to an approval from the lender. The AIP is often a solid indication that the mortgage will be approved at full application. This can be done in a matter of hours, or even minutes, of finding the right provider. The full underwritten application approval is when the lender has either automatically or manually checked the application in line with any documentation submitted, and is happy to authorise the mortgage subject to the valuation on the property being acceptable.
If you get your mortgage approval very fast then completion may take slightly longer since your solicitor may not have started on any of the legal tasks which have to happen ahead of completion.
Complicated applications such as people falling with adverse credit, self-employed, low deposit and high LTV can take longer than this for a number of reasons:. A pre-approved mortgage is basically an agreement to lend to a customer before a property is found and full application submitted. It can often be a certificate outlining that the lender is happy to approve the mortgage based on the information provided up to that point, and may also indicate the maximum loan available to the borrowers.
The process of getting a pre-approved mortgage in the UK is very different now to what it was years ago and, for a lot of borrowers and market professionals, the meaning of the approval itself has changed. These days, getting a pre-approved mortgage is an indication that the provider might lend, rather than an actual mortgage guarantee.
Credit scoring models have been developed to give a more accurate upfront decision to lend. But in recent years lenders have placed more importance on verification of documents and an assessment of the overall case at full application stage. Lenders will only make a solid decision once they have assessed all the documentary evidence. MMR, in particular, has placed greater responsibility on mortgage companies to assess affordability which has increased both the questions asked and hoops to jump.
Borrowers will need to pass the initial Agreement in Principle AIP stage to move on to a full application. The full application can only be submitted once you have your offer accepted on a property and are ready to get a valuation. Many potential buyers can be disappointed when they put in an offer on a home they love on the strength of an AIP only to discover that, armed with the facts, a lender would not give them the mortgage they need.
Being declined at this stage can be hugely disappointing and can also lead to a lot of stress. Worse still, it can be expensive as providers will only assess your application once upfront fees and valuations have been commissioned and these tend to be non-refundable.
This is just one good reason for using a specialist broker, like the ones we work with. The broker should also consider placing the valuation on hold until the mortgage has been given underwriters approval.
Although this is not common, it can prove to be an incredibly valuable practice. If your application is not straightforward, and having the valuation booked in is not an immediate necessity, ask your advisor to do this as it could save you some serious time, cash, and heartache.
For estate agents and vendors the AIP helps whittle out time wasters. They are always keen to ensure that anyone making an offer on a property has the money to do so, preventing any lengthy drawn-out sales to buyers that may never have been in a position to finance the purchase.
It is always advisable to get the AIP in place before you try to purchase, so you know you have the money behind you and have an idea of what you can afford to borrow. Borrowers often come to us requesting an instant mortgage pre-approval, which is certainly possible. We offer a red carpet service through the brokers we work with for these situations where speed is paramount.
Visit our quick mortgages for more information. You could go to your bank, you could visit a few, or you could have a professional broker source you the best deal. You can get a mortgage pre-approval online with the brokers we work with, just bear in mind they will need to verify your identity and income etc. Generally, the documents needed for your mortgage application are:.
Every mortgage lender also differs on their criteria and what they deem as suitable income. For example, it would be difficult for an advisor to get you an accurate pre-approval without first seeing evidence of your income. The process of mortgage pre-approval for borrowers with bad credit is often slightly different than for people with clean credit histories.
When underwriting applications like this, mortgage lenders need to fully underwrite applications based on the entire customer profile. Underwriting happens once a property has been agreed upon and all supporting documents are submitted for review. Most people with clean credit can get fairly accurate instant decisions as the credit scoring systems are well automated. But specialist providers offering adverse credit mortgages tend to have more manual processes.
Although bad credit mortgage pre-approvals give a good indication that lending will be approved, they often hold less weight. The timeline varies by lender and how quickly you are able to provide the lender with the information it needs, including proof of your income and assets. Tax returns, W-2s and pay stubs will be needed to verify your employment and income for mortgage preapproval. Lenders will also need a list of your monthly debt payments, such as student loans and credit cards.
Be prepared to provide bank, retirement and investment account statements to show proof of your assets as well. Before reaching out to a lender for mortgage preapproval, check your credit score and report. A higher credit score can help you qualify for better mortgage rates. Errors on your credit report can cause your score to be lower than it should be. Find a Lender to Get Preapproved.
Is a pre-qualification the same as preapproval? What is a preapproval letter? How to get preapproved for a home loan. Frequently asked questions Do mortgage preapprovals affect your credit score?
How long does it take to get preapproved for a mortgage? What documents do you need for a mortgage preapproval? On a similar note Dive even deeper in Mortgages. Explore Mortgages. Get more smart money moves — straight to your inbox. Sign up.
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