How Long Does a Mortgage Application Take?

Applying for a mortgage can be stressful enough for many people – however, it really doesn’t need to be! When looking around for the best mortgage deals, you’re going to need to make sure you compare and contrast between friendly services who can help guide you through the whole process. One of the most common questions mortgage lenders are asked from application to application is, of course, how long does the mortgage application process take?

There are many different factors which go into mortgage applications of all shapes and sizes. However, there are some routes through fast mortgage approvals which could help you claim the keys to your new home sooner than you might imagine. Fast mortgage loan approval might not always be guaranteed from lender to lender, however, it’s important to keep an open mind about how long the application process can generally take. 

How Long Will it Take for my Mortgage Application to be Approved?

On average, it will likely take a UK mortgage application up to one calendar month to process. This means, from end to end, it could take up to five weeks for you to hear whether or not you have been successful.

However, do keep in mind that this is purely an average or aggregate figure. You may find that from between applications to offer, you could have an answer in as quickly as three weeks.

The reason why this takes time to process is that there is plenty of paperwork to fill in and process! Not only will you need to undergo a credit check, but your application will be means-tested, and there will need to be various pieces of bureaucracy to complete along the way.

This is all necessary, however – as it means you can be sure your offer is protected, and that your lender has taken the time to understand your position. It is much better to give lenders time to consider your application than to accept a ‘no’ without any kind of background work!

signing documents for a new home

Is it Possible to Speed up the Process?

In some cases, it is entirely possible to speed up the mortgage application process. Your circumstances may dictate how quickly this will actually take effect; however, some lenders will be able to streamline the paperwork and bureaucracy for you.

At My Mortgage & Protection Experts, we work hard to make sure that all our applicants receive the smoothest, most efficient application process possible. While there are always going to be processes and red tape to cover, we work hard to ensure that you’re not kept waiting unnecessarily from step to step. It’s in everyone’s best interests to keep the mortgage application efficient, but just as important to ensure that it remains accurate.

Therefore – if you’re struggling to push ahead with a mortgage application, why not reach out to a leading mortgage lender who can help you get access to your dream purchase sooner rather than later? Let My Mortgage & Protection Experts help you access the best deals with accuracy and efficiency today.

Contact Us Today

Give us a call on 03300 94 94 09 or please feel free to fill in the enquiry form on our contact page today.

How Does a Remortgage Work?

Remortgaging is something that people go through all the time. But what does a remortgage mean in practice? What are the actual benefits of remortgaging a property – and when can you remortgage at all? Some of the processes can seem a little confusing at first, which is why we’re here to help break things down a little for you.

Continue reading “How Does a Remortgage Work?”

Why is an agreement in principle so important?

In this blog, we’ll explain what an agreement in principle is and how it can benefit you as you look to buy or move home.

The changes in government guidelines around social distancing are potentially making it easier to move home. So, if you are looking to move, it is a good time to speak with a professional mortgage broker.

A Mortgage Broker can assist you with reviewing your mortgage options in what is a challenging time with lending criteria. So, gaining a Mortgage Agreement in Principle has probably never been more important.

Why is an Agreement in Principle important?

An agreement in principle shows that you are serious about your intentions to buy and that you have done your homework. Both property sellers (vendors) and Estate Agents are far more likely to accept an offer on a property where the prospective purchaser has an agreement in principle.

Having taken steps to arrange your Mortgage Agreement in Principle will also generally speed up the mortgage process and gaining a mortgage offer.

You may have heard of an agreement in principle being called:

A Mortgage in Principle

Decision in Principle

Approval in Principle

Mortgage Promise

Agreements are a confirmation from a lender/broker stating that a lender will potentially lend a certain amount to you before you’ve finalised the purchase of your home. We say “potentially”, as a full mortgage application will involve a full underwriting assessment by the respective lender of all information, supporting documentation and a property survey / valuation. This cannot be achieved by completing a Mortgage Agreement in Principle.

It should be noted that many online agreement, systems and processes will take only basic information and do not request supporting documentation for review. These very basic assessments may be misleading as only basic information is assessed.

picture of a wooden house sitting on money

What are the Steps to gaining a Mortgage Agreement in Principle?

 A mortgage agreement can be gained from individual lenders; however, it is important to note that online systems will only take account of the information that you supply and give you access to the individual lenders decision-making and equally products.

 Mortgage brokers will give you access to a wide range of lenders and their differing criteria and affordability assessments. This will generally give the mortgagee a wider range of options to consider.

 Information required to undergo a full mortgage agreement are details, such as;

Address history

Employment information

Income

Family / Dependents

Financial Commitments / Existing Mortgage Commitments

Credit history

Supporting documents would also be required by most lenders when applying for a mortgage and it makes sense to get these reviewed by a professional during the Mortgage Agreement process.

By taking this step, it will make the accuracy of the research more exact. Equally, this will dictate which lenders will potentially accept an application based on the amount of loan required. Typically documents required will consist of the following (but are not limited to);

Proof of ID

Proof of address

Residency status

Proof of income, last 3 months wage slips or 2 years tax calculations for self employed (for variable pay this assessment is imperative to give an accurate assessment)

Last 3 months Bank Statements

Cutting out these important steps could provide you with inaccurate assessments being made and lead to disappointment. Especially if a mortgage application is subsequently declined.

Why, it’s a good idea to get an agreement in principle?

A full mortgage agreement process undertaken by mortgage brokers will generally give you a better understanding of;

Can you get a mortgage?

How much can you borrow?

What interest rates are available to you?

How much will your mortgage cost?

What other costs are involved?

Getting a mortgage agreement completed early in the home buying process is an important step. If completed accurately it will give you parameters as to what potential properties are within your grasp.

An agreement in principle will give you the comfort of knowing that you have been professionally assessed for criteria, affordability and the recommended lender will have performed a credit check.

It will also offer some reassurance that you’ll be able to buy a property, especially if you have any concerns regarding elements such as your credit history.

A mortgage agreement in principle will typically last between 60 and 90 days, dependent upon the lender. If it expires before you need it, you can always re-apply, but be careful about requesting too many agreements in principle. Lots of credit searches could damage your credit score.

To get an agreement in principle, you’ll either need to approach a mortgage lender directly or apply through a mortgage broker, like My Mortgage & Protection Experts. A lender will only be able to make an agreement based on their criteria, affordability calculations and their credit score assessment.

A broker will be able to assess your position across a broad range of lenders, who will all have very differing criteria, affordability assessments and attitudes towards a credit profile.

It should be noted that you do not need to go through the full mortgage application process to get an agreement in principle. This will come once you’ve had an offer on a property accepted.

Gaining your Mortgage Agreement in Principle

Our team of mortgage brokers and para-planners are mortgage professional and are experienced in assisting clients to gain a Mortgage. Our aim being to find you the most suitable mortgage to meet your needs and requirements. Then to gain you a mortgage agreement in principle quickly.

 One of the first steps with My Mortgage & Protection Experts in being able to gain you an Agreement in Principle, is understanding your personal requirements This can then progress to providing you with personalised research. This is an important step to ensure that you gain an agreement with the most appropriate lender to suit your needs and circumstances.

We have 2 routes, firstly the Full Assessment (recommended) and secondly an online Mortgage Eligibility Check.

The Full Assessment would be our recommended route as this we can help you follow the processes already described in the paragraph “What are the steps to gaining a Mortgage Agreement”. This method will give you the most accurate assessment and results, schedule a time to gain your Mortgage Agreement in Principle

The My Mortgage & Protection Experts “Mortgage Eligibility Check”, will give you a quick indication as to whether we believe we can get you a mortgage (this is subject to credit score and financial assessment). This quick and simple process generally only takes a couple of minutes to complete and will give you an instant result once you have completed the online form. This process does not conduct a credit check so will not leave a footprint on your credit file. At the end of the process you can download your personalised Mortgage Agreement Certificate.

Our recommendation would be to engage in our more detailed assessment. By doing this you will benefit from personalised research and a full assessment. This will provide you a greater assurance that the mortgage you need is achievable. As a minimum, we would suggest that you need to supply all relevant information that a lender would require to assess during a full mortgage application.

Working with a broker like My Mortgage & Protection Experts will offer you a professional and personal service and protect you from unnecessary Credit Checks.

Note that generally, My Mortgage & Protection Experts do not charge you for gaining a Mortgage Agreement

 Other tools available to help with questions you may have;

How much will my mortgage cost?

How Much an I borrow?

Search for a Mortgage

Mortgage Eligibility Check

Schedule an Initial Mortgage Consultation

To find out more about how we can help you secure an agreement in principle, get in touch today:

Contact Us Today

Give us a call on 03300 94 94 09 or please feel free to fill in the enquiry form on our contact page today or Schedule a convenient appointment.

“A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.” 

Purchasing a Property | What You Need to Know

From everyone here at My Mortgage & Protection Experts, we hope you’re staying safe during this time. As government guidance is allowing estate agents to go back to work, this means you can start thinking about moving house or buying your first property again. Hopefully, this will be sooner rather than later.

As things are moving so fast at this time, we wanted to create an informative blog about purchasing a property. One that will hopefully explain everything you need to know. From applying for a mortgage to house insurance. And remember, even if you don’t plan on purchasing a property soon, it doesn’t hurt to plan. Plan: this is one of the best tips we can offer you.

So, without further ado, let’s get started:

Mortgage deals may not be available and lending is subject to individual circumstances and status.

Applying for A Mortgage

If you want to buy anything you need to have the right amount of funds. Obvious, right? When it comes to purchasing a property, however, it isn’t so simple.

To buy a flat or a house will cost more than most of us will have in our bank account at one time ever. So, how does anyone buy a property at all? The answer is with a mortgage.

A mortgage is a type of loan you take out against the value of the property you’re purchasing. You can take out a mortgage to buy either land or a house or flat. We’re going to discuss the different types of mortgages on offer and the benefits available. But, the general idea is you pay back a certain amount of the loan monthly over time. How much will vary depending on the type of mortgage you have taken out.

This can sound daunting if you’re purchasing a property for the first time, right? Of course, such a big financial commitment is going to feel intimidating initially. However, there are First Time Buyer Mortgage Schemes available and Guarantor Mortgages to assist first-time buyers. Help is also at hand to guide you through the whole process by speaking with our qualified and professional Mortgage Broker team.

Deposits

Typically, mortgages are available from 95% i.e. you put in a deposit of 5% for the property that you want to purchase. The deposit funds need to be available but are only put into the transaction when completing the purchase transaction (so right at the very end).

There are also schemes available such as ISA’s to assist you with saving for a deposit.

It should be noted, that generally the higher the level of deposit, the better the interest rate offered by the lenders will be. So, therefore, if you have a deposit of 10% compared to 5%, the 10% deposit would generally attract a better deal from the lender.

It should be pointed out that during the Covid-19 pandemic; Lenders have been more risk-averse. This means that they have generally wanted to see higher levels of deposits i.e. 10-15% as a minimum. As the markets gradually return to normality, we should see the return of 95% loans in due course.

First-Time Buyer Mortgage

If you’re purchasing a property for the first time have a look at our mortgage eligibility checker. This allows you to have an instant indication on whether you’re eligible for a mortgage. Without even having to speak to someone. The decision will be based around your financial position and a financial assessment.

If you’re eligible, one of the mortgage schemes that can help you to purchase a home is Help to Buy. A lot of young people trying to break out on their own will need financial assistance to purchase their first property. This is the reality of the world today for first-time buyers.

Help to Buy is a government scheme to assist first-time buyers to get mortgages for new build homes. As long as the value of the property being purchased is below £600,000. The scheme allows a first-time buyer with a deposit equivalent to 5% of the property value to be eligible for a mortgage.

So as an example, if you had a 5% deposit you would arrange a mortgage for 95% of the property value. The Help to Buy loan scheme (if eligible) contributes a further 20% deposit to your purchase. You therefore only need to apply for a 75% loan, meaning generally a better deal and a higher chance of application success.

The remaining money is paid for by a government loan. This is an interest-free loan for the first five years. At the end of the five-year period, you will need to either repay the loan or start paying interest on it.

Please note that we have focused the information on the Government-backed scheme for those buying in England. There are different schemes available if you are purchasing in Wales, Northern Ireland or Scotland.

Please note, this is only available for new build properties. Speak to one of our experts if you need further information.

This scheme is available in England only. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes – check out their websites.

Home Movers

Definitely, there is positive movement in the market and a lot of activity with properties now available to view.

Again, generally, the biggest deposit that you have the better as this will generally benefit you with a lower interest rate.

Getting your finances in order and any mortgage requirements pre-agreed is sensible. Whatever the market conditions, it is really important to ensure that you are in the strongest possible position so that you can move quickly to strike a deal. We would highly recommend, complete our mortgage eligibility check or even better speak with one of our professional advisers to get your mortgage agreed in principle.

handing over keys to a new property

Life assurance

At My Mortgage & Protection Experts, we believe that it is important to protect you and your new home. You will have had to work and save for your deposit. Therefore, once you have bought your new home it is vitally important that you protect your most valuable asset. We can assist, by providing you with a full personal mortgage protection review.

Insurances to consider are, protecting your income, life assurance, critical illness, unemployment cover and home insurance. Just imagine a situation where for whatever reason yours or a partner’s income were to stop? What implications would this have? Insurance will give you valuable peace of mind, ensuring that if the worst happens, you have provisions in place to protect you.

Income protection insurance isn’t a conventional house insurance policy. This type of insurance plan is available in a variety of policies. The purpose of an income protection scheme is to cover your costs in the event your income falls. This could be due to an accident at work or becoming unemployed. This insurance policy will protect your interests and allow you to continue to repay your mortgage.

To find out more about purchasing a property, get in touch with us today:

Contact Us Today

Give us a call on or please feel free to fill in the enquiry form on our contact page today.

How Does a Mortgage Work?

Let’s take things back to basics. Here is a step by step guide to the mortgage process.

But the thing is, there is more than one type of mortgage. In this blog, we’re going to go through different types of mortgages. As well as guide you through how a mortgage works. Here are some examples of different mortgage options on the market.

schedule a call with an adviser

What is a Mortgage?

A mortgage is a loan you take out to help you buy a property or land. For most lenders, you will have to put down a minimum of a 5% deposit and the rest of the money you need will form the loan. Typically, most mortgages are taken out for a period of 25 years (Some mortgages may have longer or shorter terms) and the mortgage loan is secured against the value of your property.

You will pay back this loan monthly over an agreed period of time. You will also pay interest on the amount you have borrowed alongside your monthly payments. This is either a fixed interest rate or a variable rate of interest. Fixed interest rates are unchangeable payments you agree to. Whereas variable interest rates will fluctuate depending on the current interest rate set by the lender.

Affordability

The interest rate of your mortgage is something you have to consider when planning your monthly payments. It’s important that the mortgage applied for is affordable and Lenders have strict criteria concerning affordability.

 With affordability being a key consideration it is important that you work out your outgoings. Include financial commitments such as HP, loans or credit card bills, tax, food bills, and household bills. These are all things your lender will consider when calculating your affordability when you apply for a mortgage. Mortgage lenders require proof of your monthly income and specific expenditure information. As well as if you have any debts to repay.

happy couple signing for a mortgage


Mortgage Interest Rates

Typical interest rates are the lender’s variable rate (often known as the standard variable rate), fixed rates, tracker rates and discounted rates.

Variable-rate mortgages. A variable-rate is set by the individual lender. As the name suggests, with a variable rate mortgage your interest rate and mortgage payment could go up or down from month to month. If you choose a variable interest rate, this can be beneficial if interest rates drop.

Fixed-rate mortgages set the interest rate at a fixed amount for a period of time. This is normally a period of 2 to 5 years, however, there are longer-term fixed rates around sometimes up to 10 years in term. The advantage of the fixed-rate is a known monthly payment, however, if interest rates drop below your rate, then you will be potentially paying more than you need to.

Tracker rates, follow the Bank of England base rate. The rate could be described as “base rate +2%, this means that your interest rate would be the Bank of England base rate +2%. However, if the Bank of England base rate changes, the rate you pay will change, up or down.

Discounted mortgages follow the lender’s standard variable layer rate. The lender sets the variable rate and typically when the Bank of England changes the base rate, up or down. Then the variable-rate will generally follow suit plus or minus a margin for the lender. This again means that the monthly payment can change up to or down.

With most mortgage deals, all your rate will revert to the lender’s variable rate when your initial scheme comes to an end. So, as an example, if you have opted for a two-year fixed rate, at the end of the 2 year period your mortgage would revert to a variable rate.

How Mortgages Work When Moving Home

Depending on your mortgage deal, you may be able to transfer an existing mortgage loan onto your new property. This will depend on the value of your current property and your new house. You may be asked to take out more money to afford your new property. But, you may also be able to pay off your existing mortgage by scaling down in home size.

Types of Mortgages

There are three main types of mortgages:

● First-Time Buyer – This a mortgage specific for people taking their first step onto the property ladder. If you’re buying your first home, this is the mortgage that you will benefit most from.

●     Remortgage – Remortgaging can be a great way to save money and find a better interest rate for a similar mortgage type where there is no additional borrowing. It is always important to consult a mortgage advisor when you consider remortgaging. This way you ensure you find the best deal for you based on your needs, circumstances and preferences. You may have to pay an early repayment charge to your existing lending if you remortgage.

● Home-Mover – This type of mortgage helps you to move from one property to another. For people who have already brought their first home.

Whenever considering which mortgage is right for you and your circumstances, it is vital to consult a mortgage advisor. For more information from our mortgage experts, get in touch with our team today:

Contact Us Today

Give us a call on 03300 949 409 to enquire about all the mortgage options available to you. If you have any questions, please contact us to discuss your options.

“A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.”