If you’re looking to get on the property ladder, you’ll need to know the ins and outs of home loans. But how do you get approved for a mortgage? In this guide, we cover the key aspects behind mortgage lenders, interest rates, approval techniques and more.

## Six steps to get approved for a mortgage

#### 1. Save for a deposit

You’ll need to set aside money each month for a deposit to demonstrate you’re responsible with managing your finances. Crucially, make sure it isn’t borrowed money. Banks and lenders won’t let you use a smaller loan to secure a larger one.

When it comes to deposits, the bigger the better. Using schemes like [Lifetime ISAs](https://www.gov.uk/lifetime-isa) and [95% mortgages](https://www.getagent.co.uk/blog/property-news/what-is-the-mortgage-guarantee-scheme) can help you maximise the power of your deposit.

**It's also worth increasing the size of your deposit.**

Generally, the larger your deposit, the cheaper your mortgage rate will be.

#### 2. Increase your chances with tidy finances

Tightening your belt is good advice at any time, but it’s vital in the 3-6 months [before you apply for a mortgage](https://www.getagent.co.uk/blog/mortgages/how-to-apply-for-a-mortgage). Banks will check your finances, so it’s important to get ahead and look your best on paper. 

Having some existing loans on things like credit cards, phones or cars is fine - it helps show that you’re a capable borrower. But, banks become worried if your income is tied up in direct debits and loan payments.

You can improve your chances and increase your credit score by:

* Ensuring that you pay bills and debts on time.
* Reducing your outstanding debt as best you can.
* Closing old accounts.
* De-linking accounts with previous partners or old flatmates.
* Registering to vote.
* Making sure the addresses on your credit report are consistent. Many credit reports have been compromised by a lack of management.

Go one step further and [find an expert estate agent](https://www.getagent.co.uk/vendor) who can help you find properties in up-and-coming neighbourhoods.

#### 3. Shop around

See what mortgage deals the market has to offer. They are competing for your business so you’re likely to find a good deal if you spend a bit of time researching.

#### 4. Confirm your affordability

The next step in getting approved for a mortgage is confirming your affordability. Lenders will ask questions about your finances and existing assets to your name. Some typical checks include:

* Reviewing the last three months of your income.
* Reviewing your expenditure and spending habits by analysing bank statements.
* Whether you have existing properties.
* Whether you have or want children (or other dependents).
* Where your deposit came from.

If you’re making a joint application (with a partner, business associate, or friend or family member), the lender will also ask about them.

You’ll need to [decide for how long you’d like to borrow](https://www.getagent.co.uk/blog/mortgages/types-of-mortgage). 25 years is the traditional term length, but longer (and shorter) ones are available. Although your monthly payment may decrease, your total will go up with interest.

Once they’ve assessed your finances and approved your application, you’ll receive an ‘agreement in principle’ (AIP) document, specifying the limit you’re approved to borrow.

#### 5. Give accurate answers

Inaccurate or inconsistent information can delay the process while plainly wrong information can land you in trouble. Follow the steps below to make sure your application is accurate:

* Have your employment records ready.
* Make sure you have details and dates for previous employment.
* Give your full name or make sure its consistent on everything.
* Declare your existing debt.
* Make sure to have your 3 years address ready with correct dates and postcodes.
* Make sure income figures are correct and include any bonuses if applicable.
* Make sure your proof of funds and deposit is accurate.
* Make sure your payslips align with the dates asked for.

#### 6. Make a sensible offer on a property

Once you’ve found a place you’d like to live, put in an offer. If it’s accepted, your estate agent will work with the seller’s estate agent or solicitor, take care of the paperwork, and transfer the deed.

Remember, your mortgage application is tied to your ability to pay it back, so make sure your offer is sensible. If you make an offer that’s far higher than the valuation to win the seller over, your approval chances with the bank may decrease.

Your bank may also perform some final checks on the property before everything’s complete, such as conducting an independent evaluation or checking the home report once more.

If the bank finds that [the property is overvalued](https://www.getagent.co.uk/blog/first-time-sellers/how-to-tell-if-property-overpriced-uk), they may adjust your mortgage offer. In that case, you may need to adjust your deposit to make the gap.

![how-to-sell-a-house-having-been-previously-refused-a-mortgage](//images.ctfassets.net/us6n8ous4bz0/6osbXAS0I2Vpqtro4yEjgq/a62c4c8549e80cb5f1f00baf0fe6765b/how-to-sell-a-house-having-been-previously-refused-a-mortgage_.jpg)

## Requirements for mortgage approval

To get approved for a mortgage you need the following 7 things:

#### Proof of income and funds

Your mortgage lender will need to know you have enough money coming in to make good on monthly mortgage repayments. They'll also need to determine where your funds are coming from, whether that's from bank or savings account statements. Evidence of your regular ingoings and outgoings will help the lender to make certain of your strengths as a borrower. 

#### Proof of assets

As well as proof of income, proof of existing assets will help the lender to decide on your potential as a borrower. Assets, such as existing properties with mortgages, may hinder your application as you're already making regular payments for real estate, and may be unable to afford another.

#### A good credit rating

Your credit rating affects your ability to take out loans. Missed payments and overdue debt can contribute to a decline in the quality of your report.

A poor credit history suggests to lenders that you're not viable as a borrower, and that you will struggle to make good on future monthly payments. Lenders often employ credit reference agencies or underwriters to determine the quality of a would-be borrower's credit rating.

**Remember**: You can do a mortgage credit check with one of the primary three credit reference agencies - Equifax, Experian or CallCredit.

#### Proof of employment

Proof of secure employment will help alleviate any concerns the lender has that you could become a financial risk, as you are receiving a regular income and benefits. Frequent new jobs or periods of transition can be causes of concern for lenders, as they don't know whether you're capable of holding down a steady job.

#### Proof of identity

It goes without saying that lenders expect potential borrowers to be able to prove who they say they are. Borrowers should provide a passport or driving licence to prove their identity.

#### Valuation of property from the lender

At some point in the real mortgage application process, the lender will need to assess the market value of the property you want to purchase in order to verify your loan requirements. Mortgage valuations usually involve an appointed expert driving by the property to quickly ascertain its worth.

#### Deposit

Last but not least, a down payment (or deposit) is required for lenders to release the mortgage funds. This is usually 10 - 15% of your loan.

## What can lower your chances of getting a mortgage approved?

#### Switching Jobs

Someone in long term employment looks like a more secure prospect to a lender than a borrower who has only recently started a job or changes work regularly. If you’re looking to move jobs, it might be worth focusing on securing a mortgage _before_ making the transition.

#### Making any major purchases

A potential lender wants to see evidence of frugality. Hold off purchasing a car, major appliance or any expensive furniture until you secure a loan.

#### Taking any unpaid time off

Demonstrating that you are a reliable employee will help potential lenders see that you are a committed earner who can confidently make loan repayments.

#### Opening or increasing any liabilities

Increasing your debt by opening any new liabilities on new credit card accounts will make you appear even more untrustworthy to potential lenders.

## Mortgage affordability

#### What mortgage can I get with my salary?

A rough guide to determine your mortgage affordability is multiplying your annual income by 4 or 4.5.

For example, on an average UK salary of around £26,000, you would be able to borrow between £104,000 and £117,000. If you and your partner are on the same wage as before, you would be able to borrow as much as £234,000.

Though this method gives an estimation of how much a bank will loan you, it ignores other factors. For example, banks may allow you to borrow more if you change your mortgage term length or interest rate.

#### How much mortgage can I afford?

How much mortgage you can afford **depends on your current financial situation**. Instead of paying rent, buying a house with a mortgage requires monthly repayments. 

When it comes to outgoings however, repayments are just another sum of money leaving your bank account every month. With this logic, you want your repayments to roughly match the amount of rent you usually pay. Otherwise, you might end up unable to continue the standard of living you’re used to.

Mortgages with longer terms have lower monthly repayments because the mortgage is spread out over a longer period of time. For example, a couple that wants a £350,000 property could feasibly get a £315,000 mortgage with a £35,000 deposit. This type of loan (with an interest rate of 2% and a term of 25 years) would require monthly repayments of £1,335.14. Split between two, this would equal £667.57 each a month.

So, if you can afford £667.57 a month, and you’re looking to get a mortgage with a partner, you could afford a property worth £350,000.

**Please note:** Mortgage calculations change all the time and the above is not a reflection of current mortgage rates, but an example for educational purposes.

#### How to calculate how much mortgage you can borrow

There are four ingredients when calculating your mortgage affordability: 

1. Mortgage sum
2. Mortgage length
3. Your monthly payment
4. The interest rate

The final figure is based on how much you can afford based on the details you provided previously.

A mortgage affordability calculator can also be a worthwhile option. [MoneySavingExpert](https://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing/) and [Nationwide](https://www.nationwide.co.uk/mortgages/mortgage-calculators/borrowing-calculator/) both have mortgage calculators that will let you play around with the numbers before you make an application.

**It's always worth contacting a mortgage broker to help determine the right mortgage for you.**

## Summary: A lot to get through, but you can do it!

We’ve outlined the process you should follow to save for a deposit, get your finances in shape, and confirm your affordability with the bank before making a bid. Before you know it, you’ll be able to intelligently navigate the market to find a great mortgage deal and be on your way to a new home!

If you’re still in any doubt, don’t forget - you can check your mortgage potential for free with a mortgage calculator, or any of the three credit agencies mentioned above. Or if you want to check your available options, you could always splurge a little on a mortgage broker.

Homeowners sitting in a room with packed boxes looking at a laptop screen.

Will I get approved for a mortgage?

If you want your mortgage application approved, here's some fail-safe ways you can boost your chances.

How to get approved for a mortgage | GetAgent

How to get approved for a mortgage

For most mortgages, you need a deposit of at least 10% (and usually higher). For a £300,000 house, that’s at least £30,000. 

When you factor in estate agency fees, conveyancing costs, Stamp Duty, and moving costs on top of the deposit, it's clear that you'll need a significant amount of cash on hand to make the purchase.

So how do you know if you can afford to buy a house? How can you ensure you are ready to make the big step?

## 1. Analyse the latest property prices

If you've got an idea of where you want to live, and the type of property you want to live in, the first thing you need to do is find out the value of your ideal home. [Zoopla](https://www.zoopla.co.uk/) and [Rightmove](https://www.rightmove.co.uk/) are the most popular property portals in the UK. You can use their websites or apps to browse the latest 'For Sale' properties in different parts of the country.

## 2. Calculate your mortgage affordability

First time buyers can use a mortgage affordability calculator to work out whether they can afford the loan they need to purchase the property and make subsequent monthly mortgage repayments. You can use the mortgage calculator at [MoneySavingExpert](https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/) or, popular mortgage lender, [Nationwide](https://www.nationwide.co.uk/mortgages/mortgage-calculators/borrowing-calculator/).

**Remember**: Mortgage affordability is more than just how much money you have in at any one time. Your credit report plays a huge role in your attractiveness to lenders as a borrower. That's why lenders consult an independent credit reference agency, like [Equifax](https://www.equifax.co.uk/), [Experian](https://www.experian.co.uk/) or TransUnion to determine the quality of your credit report. Also, lenders nearly always require bank statements to analyse your annual income and build a better picture of your financial profile. 

## 3. Browse available mortgages

Armed with the knowledge of your mortgage affordability, browse the latest available mortgages on sites like [MoneySuperMarket](https://www.moneysupermarket.com/) and [Comparethemarket](https://www.comparethemarket.com/). There are different types of deals to choose from, with self-employed mortgages for those in individual employment, and shared ownership mortgages for those seeking a novel, cheaper way of getting on the property ladder.

Pay close attention to interest rates. For at least the first few years with a mortgage, you'll primarily be paying off interest with your monthly repayments. As your Loan-to-Value ratio increases, you'll be able to access better deals with lower interest rates. 

Generally, the lower the interest rate, the better the deal - but this depends on your priorities.

Sadly, your Loan-to-Value ratio isn't the only determiner of mortgage interest rates. The pace at which average interest rates rise is dictated by the state of the economy. In recent history, interest rate rises have frequently made the headlines. You can read more about interest rates in our [Property News](https://www.getagent.co.uk/blog/property-news) section.

**If you don't have large savings, you may still be able to get a mortgage. Depending on your situation, a government scheme may be able to help.**

![Costs of buying a house](//images.ctfassets.net/us6n8ous4bz0/6gDltRBeAjB2M6gZMThLcz/157bd590ceaf77abdc3375aeacd86343/cost-of-buying.jpg)

## Create a savings plan

If you don't have enough money to purchase your first home, you need to start saving. Depending on how much you need to save, it might be worth creating a savings plan.

To do this, you need to take all of your ingoings and outgoings into account - almost to a cellular level. Everything you spend from week to week needs to be accounted for.

Once you have tracked your monthly monetary transactions, your next job is to work out where it is viable to make savings without massively denting the quality of your life.

You can devise a savings plan yourself or you can hire an independent financial advisor to do the job for you. 

## Lifetime ISA (Individual Savings Account)

Lifetime ISAs are a good option, whether you're looking to buy your first home or save for the future. To open a Lifetime ISA, you should be 18 or older but under 40.

#### How does it work?

You can contribute up to £4,000 each year until you turn 50, with the government adding a generous 25% bonus to your savings, capped at a maximum of £1,000 per year. \
It's worth noting that the £4,000 you put into your Lifetime ISA counts towards your annual ISA limit, which is £20,000 for the 2023 to 2024 tax year.

Lifetime ISAs offer the flexibility to hold cash or invest in stocks and shares, or even go for a combination of both.

When you hit 50 years of age, you won't be able to make any more contributions or receive the 25% bonus. However, your account will stay open, and your savings will continue to earn interest or investment returns.

## Shared ownership scheme

Shared ownership schemes are a good opportunity to get on the property ladder if you can't afford to buy a home outright.

To be eligible for the scheme, you usually need to have a certain level of household income and be a first-time buyer, or a previous homeowner who can't afford to buy again.

#### How do shared ownership schemes work?

You purchase a share of a property from a housing association (usually between 25% to 75% of the property's value) and pay rent on the remaining share. Eventually, you can increase your ownership over time through a process called "staircasing."

Shared ownership allows you to enjoy the perks of owning a home while easing the financial burden. Plus, it's a stepping stone towards full homeownership.

## Help to Buy scheme

The Help to Buy scheme is designed to help first-time buyers and existing homeowners get onto or move up the property ladder.

#### How does the Help to Buy scheme work?

With the Help to Buy Equity Loan, the government lends you up to 20% (or 40% in London) of the home's cost if you're buying a **new-build property**. You'll need to contribute a 5% deposit, and the remaining 75% (or 55% in London) is covered by a mortgage from a lender.

There's no need to worry about interest on the government loan for the first five years. This means you can focus on settling in and managing your mortgage. After the initial five-year interest-free period ends, you'll start paying interest on the loan.

It's worth bearing in mind that there are specific price caps and eligibility criteria for the scheme, so it's a good idea to check the details and consult with relevant authorities to see if Help to Buy is the perfect fit for you.

## Struggling to pay your monthly mortgage payments?

On the 14th of July 2023, the Government introduced a [Mortgage Charter](https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter) to help those with mortgage loans during a cost of living crisis. The charter gives borrowers more flexibility in the event of being unable to pay their mortgages.

If you’re [struggling financially](https://www.getagent.co.uk/blog/properties/cant-afford-mortgage-payments) and are unable to make your mortgage payments, be proactive and communicate with your lender. Consistent late payments will negatively affect your credit score, but your lender should be able to offer you some refinancing options.

A riskier approach would be to investigate an interest-only mortgage plan. This will significantly reduce your monthly payments, but you’ll have to pay the original amount _in full_ at the end of the mortgage term.

Only look into switching to an interest-only mortgage if you’re confident that you’ll be able to save enough to make up the final lump sum. You’ll have to provide a convincing investment plan to a lender on application too.

If you're unsure, talk to an independent financial adviser. They will be able to provide help tailored to your personal situation, and be able to guide you through your options.

## Summary: You have options!

Unless you're extremely lucky, buying a house is probably one of the most expensive things you'll ever do. While the task may feel like an insurmountable one, it's reassuring to know that there are still options if you're struggling.

If you _can_ afford to buy a house, you can begin to get the ball rolling. Explore available properties, check the latest mortgage deals, and begin scheduling house viewings. Here's some [questions to ask at your first house viewing](https://www.getagent.co.uk/blog/estate-agents/questions-to-ask-when-buying-house).

Couple sitting by a sofa admiring floor plans of their new home

Can I afford to buy?

How do you know if you can afford to buy a house? How can you ensure you are ready to make the big step?

Can I afford to buy a house? | GetAgent

Can I afford to buy a house?

With interest rates at a historic low, it’s worth considering early repayment of your mortgage. In the current market, you’re unlikely to find a savings account rate with a better return than your current mortgage rate. This makes it more promising to pay off your mortgage early, potentially taking years off your plan.

Try [this Mortgage Overpayment Calculator](http://www.hsbc.co.uk/1/2/mortgages/overpayment-calculator) to see whether paying off your mortgage early makes financial sense.

The benefit of paying off some of your mortgage is that the interest rate - which may be higher in the future - will take a percentage from a smaller amount. This will decrease the overall amount you end up paying for your mortgage. The drawback is that lenders aren’t keen for you to do this, and they might charge a fee for making an early repayment.

Talk to your lender about any possible penalty fees before you make your decision. If they do charge an early repayment fee, make sure to work out whether your savings would exceed the costs of repayment.

We’d also recommend taking into consideration your broader financial situation. Make sure to pay off expensive debts with higher interest rates, such as personal loans, or credit cards, before you make early mortgage repayments.

It’s also good practice to have at least 3-6 months of savings in reserve for everyday emergencies, such as a broken boiler or unexpected redundancy, before thinking about paying off your mortgage early.

If you have any further concerns get in touch with a mortgage advisor. They will be able to provide tailored advice for your unique financial situation.

### Refinancing

Consider refinancing if:

* You’re able to lower your interest rate by at least 1-2%

Refinancing typically costs around 3-6% of the loan’s principal. If you’re not able to reduce your interest rate by 1-2% then your refinancing costs may indeed exceed your savings.

* Interest rates have decreased and you are looking to decrease a loan’s term while incurring the same monthly mortgage payments.

Refinancing in these conditions could help you decrease your loan’s term whilst repaying the same amount monthly.

* Interest rates are falling

Converting to an adjustable rate mortgage plan may be a great option for homeowners who are planning to live in their current property for a few more years. The change allows borrowers to benefit from lower interest rates - and corresponding lower monthly payments - but won’t lead to an increase in monthly mortgage payments when interest rates eventually rise again.


A couple sitting on chairs opposite a money lender. 

Should I repay my mortgage early?

With interest rates at a historic low, you should consider repaying off your mortgage early. However, there's a few things you should consider.

Should I repay my mortgage early? | GetAgent

Many people find the prospect of applying for a mortgage to be daunting. But don’t worry: you’re not alone. It _is_ a financial and organisational challenge. But with a little forward thinking and advance preparation the task can be broken down into a series of manageable steps and you can find the right mortgage for you.

## How to apply for a mortgage - 11 steps

If you haven't applied for a mortgage before, the way forward can seem a little unclear. To demystify the process, here are some simple steps on applying for a mortgage.

1. Make sure your finances are in order.
2. Check your credit score.
3. Work out your budget.
4. Check how much you can borrow using online tools.
5. Gather all the documents you need.
6. Export and download any bank statements, utility bills etc that you need and make sure they are up to date.
7. Compare mortgages online, talk to your bank or arrange a chat with a mortgage advisor.
8. Decide on the mortgage you want with your preferred lender.
9. If you haven’t yet made an offer, ask them whether you can get a mortgage in principle.
10. If you’ve made an offer, call your lender and make a formal mortgage application.
11. Start your application. Follow the process set out by your lender and provide the documents, details and so forth that you’ve previously prepared.

## Before you apply

#### What you should NOT do before applying for a mortgage

On the other hand, you’ll want to avoid doing things that will reduce your chances of obtaining a mortgage. Some things that could negatively impact your eligibility as a borrower include:

 * **Ignoring your credit score.** A poor credit score will make it harder to get a mortgage. Be sure to do your own credit check with one of the[ three main UK rating agencies](https://www.getagent.co.uk/blog/conveyancing/improve-your-credit-score). The score they assign you is reflective of your creditworthiness.
* **Apply for loans:** Recent loan applications could suggest a higher debt-to-income ratio.
* **Quit your job**. Lenders typically value the amount of time you’ve spent at your current employment.
* **Making large deposits or purchases**. Your bank statements will be scrutinized closely for any signs of irregular activity. Out-of-the-ordinary deposits or withdrawals could raise a red flag.
* **Forgetting to pay your bills on time.** Missing regular bill payments harms your credit score, which in turn makes you a less appealing candidate for a mortgage. Be sure to keep up credit repayments.
* **Closing credit accounts.** This can reduce your available credit, raise your debt-to-income ratio and harm your ability to get a mortgage.

#### How to boost your chances of getting a mortgage

While there’s no way to guarantee you’ll gain approval for a mortgage, your best hope is to maintain a good credit score and remain in full-time employment. All lenders use different criteria to determine who they’re willing to lend to, but all of them will include a credit check. If you’ve never used credit, however, you should try to establish a credit history before applying for a mortgage. 

To boost your chances of getting a mortgage you should:

* **Begin to build a credit history.** By ensuring you’re on the electoral register (especially if you’ve just moved somewhere new). You can register to vote [here](https://www.gov.uk/register-to-vote). 
* **Consider taking out a credit card.** Use it regularly and pay off the balance in full every month. By taking these steps, you’ll demonstrate your ability to pay off debt regularly. 
* **Stay in your current job for a while.** In terms of employment, you should aim to show stability by staying in your current job for a significant period before applying for the mortgage. 

[Read more about how to improve your credit score here.](https://www.getagent.co.uk/blog/conveyancing/improve-your-credit-score)

#### Work out your budget

What can you afford? And how much are homes being sold for? Before applying for a mortgage, use our free [House Prices tool](https://www.getagent.co.uk/house-prices) to set a price range for your house search. It doesn’t need to be specific, but you should get a general idea of the property prices in your preferred areas.

#### Speak to a mortgage adviser and find a mortgage

A good early step is to find a mortgage adviser (sometimes referred to as a mortgage broker) who can advise you on which providers are most likely to consider your application. All mortgage advisers must either be regulated by the [Financial Conduct Authority](https://www.fca.org.uk/), or be an agent of a regulated firm. 

The adviser will make suggestions about which type of mortgage is right for your needs. Advisers help buyers - especially first-time buyers - navigate the complicated mortgage process, so they’re an excellent resource about what to expect in terms of standard fees, extra charges and timelines. Mortgage advisers will also help you compare mortgages: Don’t settle for the first institution that offers you a loan because you could get a better offer.

#### How do lenders check if you can afford a mortgage?

Mortgage lenders have a thorough process for ensuring borrowers can actually afford the mortgage for which they’re applying: 

1. They will begin with a credit check to determine whether you can be trusted to repay the loan. 
2. Next, they will seek proof of your household income, including your salary (and your partner’s, if relevant), as well as any freelance work, bonuses, commissions or passive income. 
3. Lenders also want to know whether you’ll have sufficient funds at the end of the month to make your mortgage repayments, so they’ll also consider regular household bills, loans, debt load and credit cards.
4. Additionally, lenders perform what’s known as a ‘stress test.’ Stress tests were instituted after the 2008-2009 financial crisis to determine whether a borrower could still afford their mortgage in the event interest rates rise. Stress tests also address other life events, such as whether the borrower retires, has a child or goes on parental leave. 

All of these checks are designed to help lenders determine how much you could borrow and repay.

#### How long does it take to apply for a mortgage?

Applying for a mortgage may only take about 24 hours if you have all the documents ready, though a number of factors could delay it, especially if you’re juggling full-time work

Once an application is submitted, most borrowers can expect a mortgage decision within about four weeks. The process can take longer, however, depending on the specifics of the situation. If your mortgage application is successful, your [conveyancer](https://www.getagent.co.uk/blog/conveyancing/what-is-conveyancing) will arrange for the funds to be transferred from the lending institution to the sellers on the day of completion.

**[Read more on this topic: How to get the best mortgage rate](https://www.getagent.co.uk/blog/buying/how-to-get-the-best-mortgage-rate)**

## Applying for a mortgage

#### The pre-planning phase should include:

* Working out your budget
* Finding a mortgage broker to give advice
* Preparing the necessary documents 

#### What you need to apply for a mortgage

Once your offer on a property is accepted, it’s time to formally apply for your mortgage. To do this, you’ll need to gather together a raft of documents. Typically, you’ll be asked to provide original materials, although occasionally printouts or pdfs are acceptable in the case of bank statements. The document you need may include:

* Between two and six months of pay slips, bank statements, your last P60 and/or your self-assessment returns (if relevant) to verify your earnings.
* Details of your regular expenditures, including childcare costs (if relevant), utility bills, Council Tax, insurance policies, travel and entertainment.
* Employer information.
* Proof of any benefits received.
* Proof of identity (can be a driving license or passport).
* Proof of current address eg: Utility bills, electric, gas, water etc.
* Proof of deposit.
* Your solicitor’s details.
* Your estate agent’s details.

You should also contact the three main credit agencies -- Equifax, Experian and TransUnion -- to check your score and ensure none of the reports contain erroneous information about you.

#### Consider getting a mortgage in principle

Potential borrowers sometimes find that an initial, preliminary decision on their mortgage application - known as [‘mortgage agreement in principle’](https://www.getagent.co.uk/blog/buying/mortgage-agreement-in-principle) - can be more or less instantaneous. An agreement in principle is reliant on basic, self-reported income information and a quick credit check. It’s an indication of a lender’s willingness to lend to the borrower, but it’s only a preliminary decision.

A full mortgage is only delivered following satisfactory answers to more detailed questions about the borrower’s finances. Still, some buyers feel that [obtaining a mortgage agreement in principle](https://www.getagent.co.uk/blog/buying/mortgage-agreement-in-principle) early helps accelerate the mortgage application once they’ve decided on the property they’ll purchase.

#### When should I apply for a mortgage?

People typically make a mortgage application once their offer on a property has been accepted.

However, prospective buyers should begin _planning_ for their mortgage application well in advance – at least several months. This is especially the case for first-time buyers, who must familiarise themselves with the process and ensure they have a good credit score.

#### Make a formal mortgage application

You can apply formally for a mortgage after your offer on a property has been accepted. When this happens, your lender will send a surveyor to conduct a thorough valuation to ensure the property is worth the agreed-upon purchase price. Your lender will also examine all the financial paperwork that you’ve provided and conduct a credit search.. 

It’s worth remembering that your lender’s credit search will leave a footprint on your report, so if your application is rejected try to find out why so you can plan your next application accordingly.

**[Read more on this topic: What is the mortgage guarantee scheme?](https://www.getagent.co.uk/blog/property-news/what-is-the-mortgage-guarantee-scheme)**

## How does it differ if you’re self-employed?

If you’re self-employed, obtaining a mortgage may be more difficult than if you were working for an employer, but it’s not impossible.

The key challenge is to prove you have a reliable income, so you’ll need to provide more evidence of how you make your money than other borrowers. In addition to documents requested for ordinary mortgage applications, self-employed people will also be asked for:

* At least two years’ certified accounts.
* [SA302](https://www.gov.uk/sa302-tax-calculation) tax return forms (evidence of your earnings) or a tax year overview from[ HMRC](https://www.gov.uk/guidance/annual-tax-summary) for the past two or three years.
* Evidence of upcoming contracts (if you’re working as a contractor).
* Evidence of dividend payments or retained profits (if, for instance, you’re director of a company).

## How long does a mortgage offer last?

If your mortgage application is successful, the lender’s offer typically remains valid for up to six months. A re-mortgage offer usually has a shorter shelf life - around three months - because the purchase takes longer to complete.

Mortgage broker discussing with a couple across a desk.

How to apply for a mortgage

With a little forward thinking and advance preparation, a mortgage application can be broken down into a series of manageable steps.

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