How Long Does a Mortgage Application Take?
Getting a mortgage is, for many people, the first step into the world of property ownership. For those that have previously bought and sold a home, they can certainly verify that the process is not always as quick or as smooth as you had hoped. With that in mind, we looked at how long a mortgage application takes so that those new to the property market have a better understanding of how long it all may take.
So, how long does a mortgage application take? Currently, the average is around 4-6 weeks, however, certain things can stall the process and see it take considerably longer. Never ideal when you are looking to sell your house to secure that dream property you have now discovered.
How long does a mortgage application take to be approved?
The timeline for a mortgage application can vary but the whole process should take 4-6 weeks. Some stages can be completed in as little as 24 hours whilst others may take considerably longer. As long as you prepare and have the correct information to hand when it is needed, you may be able to save a little time here and there.
We have broken down each stage to give you an idea of how long you can expect to have your mortgage turn from an idea to hopeful, to agreed.
Getting a mortgage in principle (MIP)
This is the first stage of any mortgage application and will give you an idea of how much a lender is willing to let you borrow. It simply states that they think you will be approved to have the amount in the MIP lent to you. This can be completed in as little as 24 hours, but should you not have the correct info to hand, it could take a little longer. Just remember, these in-principle agreements last for between 60 and 90 days so it would be best to have a property or two in mind otherwise you may have to apply for a new mortgage in principle should this one expire. Have proof of income, information relating to any loans you may have and your current expenses to hand to make sure this stage can be completed quickly.
Apply for the mortgage
Once you are aware that you are likely to be approved for the mortgage you should push forward with the application. It is at this stage that you need to make sure you get all the required information together. Missing any could delay the application significantly.
So, to help you complete it within a decent timeframe, pull together:
- A valid ID
- Proof of address (preferably a utility bill or council tax bill)
- Bank statements
- Proof of income
- Proof of deposit funds
The bank statements normally need to be from a 3-month period, as will the proof of income. Lenders like to see consistency and understand your spending. Inconsistencies or unusual spending patterns could make the difference between approval or rejection.
The duration for this is down to you. If you can pool all the information, then you can be ready in just a few hours.
What happens once you have applied for a mortgage?
Now that your application is in, it can be a bit of a waiting game for the final approval. The lender you have chosen will run assessments on how affordable the mortgage you have applied for is. They will also then have a valuation carried out on the property to ensure it is worth what you will be paying for it. They will also look at having assessments on the building completed. At this stage, a credit check will also be carried out too.
As all this rumbles on in the background, there is not much more you can do other than wait. This can take anything from 4-6 weeks in total but can, like with the other stages take longer if you have not provided the correct information.
Getting a mortgage offer
Now that your application is in, as long as there were no additional requests for info from the lender, you should be good to receive an offer within 4-6 weeks. If so, a formal offer will arrive for you to assess and accept. The offer can still be withdrawn up until the point of completion so whilst it is great that you have been approved, a few bumps can still derail your property journey.
To avoid this happening, it is advised that there is no excessive spending, no sudden job changes or no applying for loans. All of these things can hinder your mortgage offer as they were based on the circumstances as was at the time of application.
If you were to find yourself rejected. You can still look to start the process again, you will just have to apply to another lender and have the wait for approval extended, possibly by the same time period again.
From receiving your offer, you can move on to the stage of exchange and completion which can take up to as long as 2 months.
How long does a mortgage offer last?
Once your application has been approved and you have been offered a mortgage, you commonly have six months before it expires, and you would have to apply again. Some lenders may have a specific timeline that could be either longer or shorter than this period. If your offer expires, you may be able to reapply with the same lender, however, this could result in a different answer to what you received the first time around. If your circumstances have changed or the market is slightly more temperamental, you could find yourself being rejected. Likewise, if you are earning more or have saved more towards a deposit, you could find yourself being offered a better rate and able to borrow more.
If you are finding that applying for a mortgage is taking too long, you could put funds towards your new property with the sale of your current home. With no fees to pay, you can sell your house fast without fear of being stung by costly legal fees and other charges with us. Speak to the team at Gaffsy today, one of the UK’s most trusted cash house buyers.
