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How long does a mortgage application take to be approved?

How long does a mortgage application take to be approved?
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There is no doubt that buying a property can be one of life’s most stressful experiences and a big part of this can be waiting to hear if your mortgage application has been approved. Ready to apply for a mortgage?

The average time for mortgage approval time is around 2 weeks. It can take as little as 24 hours but this is usually rare. You should expect to wait two weeks on average while the mortgage lender gets the property surveyed and underwrites your mortgage application.

Guide Update (COVID): Due to the disruption from the pandemic, the majority of mortgage lenders are now facing a backlog of applications. We are finding that the lenders are adding an extra 1 – 4 weeks on their turnaround times however this differs per individual case. There are also things you can do to help speed up your application.

The intention of this guide is to make sure you as a first time buyer or home mover have an idea of how long each step takes. First time buyer mortgages needn’t be a headache and by the time it takes to read this article we hope you feel more confident about buying your first home.

How long does a mortgage application take? Learn the timeframes from initially speaking to a mortgage broker and getting a mortgage agreement in principle to you receiving your keys. We will then focus on the next stages of getting an application underway once the desired property has been chosen to finally getting a mortgage offer. Then onto the most exciting part that is when a mortgage completes and you get to pick up your keys and officially own your very own home.

How long does it take to get a mortgage

So, you are about to buy a house, or perhaps you are just about to start looking for a property and are thinking “How long does it take to get a mortgage to be approved?”. As a home buyer, the first piece of information you will need is ‘how much of a mortgage you will be able to get‘. Each bank and building society and even broker can produce an agreement in principle for you (also known as a mortgage in principle). All you need to do is ask them how much the maximum amount the lenders would be willing to lend you, based on your income and any debts you may have.

So how long does it take to get a mortgage agreement in principle (AIP)? It usually takes 24 hours to get a mortgages AIP or DIP.

What is a mortgage agreement in principle (AIP)?

Table of Contents

How long does a mortgage application take?

You will have obtained an agreement mortgage in principle and then gone hunting for a house. Your offer has been accepted and you now want to get everything underway. The mortgage application is usually a continuation of the agreement in principle. Therefore you now need this to be progressed into a full mortgage app, this is known as the mortgage application process. In order to do this, the lender makes sure the price you have agreed to buy the property for, the address, the estate agent you are buying through and the solicitor you want to use for the purchase conveyancing.

The lender will require your latest 3 months payslips, last 3 months bank statements and will also need to see your passport and/or driving license, current address. A mortgage application takes 24 hours based on the assumption that you already have all the documents such as bank statements together ready for the lender. There are a number of factors that can delay it but how long it takes can also be down to you as well as the lender. Any time spent by yourself at this later stage getting these items together will only add to the time it will take to get the mortgage application underway / the house buying process timescales. If you are worried about how long it takes to get a mortgage and want to speed up your mortgage process as much as possible, then use a mortgage broker and make sure you gather your documents together asap.

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What happens after mortgage application is submitted?

Once your mortgage application has been submitted it is possible the lender may ask for further information. Once all further documents and information have been received the lender will instruct the surveyor.

How long does a mortgage property valuation take?

It takes 7-14 days from application to get the valuation completed.

The surveyor’s office will contact the estate agent to arrange access to the building you are buying so that they can carry out a buildings survey. Most surveyors will complete their report on the property the same day as the building inspection. This will be sent electronically to the lender for the lenders’ underwriter to make a decision on the true value of the property. This sometimes differs from an estate agent valuation which can cause issues. It is important that the valuation given to your lender isn’t inflated as it will only be down valued and could disrupt your mortgage application.

The underwriter will be looking for confirmation from the surveyor that the property is worth the amount that you are buying it for and that the building is structurally sound.

How long does it take between mortgage valuation and offer?

Once the mortgage valuation survey has been received from the surveyor, the lender’s underwriter will have everything at hand to make the final decision and take the application forward to a mortgage offer.

When the lender is willing to go to offer you will be mailed the mortgage offer. The solicitor carrying out your conveyancing will also be sent their own copy of the mortgage offer. It can take up to 17 days to receive an offer (although it can be as quick as 2 days or it could take longer).

How long does it take to exchange contracts?

Once your solicitor receives the mortgages offer, they should be fairly close to being able to exchange contracts which take about 8 weeks.

While your mortgage application was underway, your solicitor has been proceeding with the conveyancing needed for your purchase. The solicitor will have applied for the local authority search which takes approximately 4 weeks, depending on the local authority and how busy the housing market is at that point in time.

Your solicitor will also have been communicating with the necessary vendors’ conveyancing solicitors, asking any questions and making any enquiries.

Once your solicitor has your mortgage offer, local authority search and enquiries they will arrange for you to visit their offices for a pre-exchange meeting. At this meeting, they will cover any problems or concerns that have been highlighted and you will also be asked any preferential dates for completion.

How long will it take to complete?

The day for picking up your keys and moving into your new home is nearly here. Once you have exchanged contracts your solicitor will arrange with your lender to draw the funds down so that you can complete and officially own your new home.

The time between exchange of contracts and completion can vary as it is decided by the owner and buyer. The quickest possible time is 1 week, as it takes this long for the solicitor to give notice to your lender that they require the funds to complete. The average time between exchange of contracts and completion is 4 weeks. Occasionally it could take longer.

What time on completion day will I be able to pick up the keys?

You’ve learnt how long does a mortgage take but when can you expect to actually get your keys. This really depends on where you are in the chain and how long the chain is. If you are a buyer who is purchasing an empty property, then the completion will be quick and there is no reason why it can’t be before lunchtime.

The higher you are up the chain, the later in the day it is likely to be. When the chain is very long (8-10 properties) completion can be as late in the day as 4pm.

Is it possible to make the process of buying a property quicker?

There are a couple of ways that buying a home can happen a little quicker –

Buy a property that the owner has moved out of – One of the reasons that the process of buying a home/property can take so many weeks is down to the length of the chain. Therefore, if you find a property that is unoccupied this will more than likely mean that the chain will be very short and may also mean that the owner will be keen for the sale to proceed as quickly as possible.

Use an independent no fee mortgage broker – A lot of the time it takes to get a mortgage can be delayed due to poor communication between the estate agent, solicitor and lenders. How long it takes to get your mortgage will depend on if you have a broker or not. Mortgages don’t need to be slow and in fact, a broker will speed the whole process up as they will communicate with all the different parties. It is essential that mortgage applications get off to a quick start and a mortgage broker will have an understanding of any banks and building societies that have issues with the speed at that time. The broker will, therefore, be able to avoid these mortgage lenders. Once the lender has been chosen, your broker will also know what documents and information will be needed and will be able to submit this with the application. This can shorten the process to mortgage offer by as much as 2 weeks.

So, how do I get a mortgage?

YesCanDo Money would love to help you. YesCanDo Money is an independent family whole of market mortgage broker. They will be able to search the whole market to not only find you the best rates and deals but also to speed up the house buying and mortgages application process for you.

Sounds good, however, you may be wondering how much this service is going to cost? The answer is not one penny. YesCanDo Money are a NO FEE mortgage broker. YesCanDo Money gets paid by the lender and therefore does not charge for their services.

So, let’s get you off to a quick start. Get a mortgage agreement in principle agreed by contacting YesCanDo Money. This will give you peace of mind that you will be able to get a mortgage and also will make you aware of the maximum mortgage you will be accepted on.

Speak to one of our experienced independent Hampshire based (online covering the UK) mortgage advisors for free mortgage advice.

How to get a mortgage with the best rate

There can be several reasons for needing a mortgage. Maybe you are about to buy a new property or move home. maybe you are looking at paying off a credit card or carry out home improvements. Is your existing fixed-rate coming to an end? Whatever your circumstances are there is one thing for sure and that is you will want to find the best mortgage rate for you!

Many people leave arranging a mortgage deal to the last minute. You may have found your dream home and are now panicking about how to find the right mortgages with a great interest rate! Your existing deal with your lender may be coming to an end and you may have left it to the last minute to sort out a new deal. Don’t panic! YesCanDo Money is a ‘whole of market’ free mortgage broker with access to nearly every mortgage lender and the best mortgage rates.

How to speed up the mortgage application process

To guarantee a speedier mortgage application process it is highly recommended to use a broker.

Step 1 – GET IN TOUCH WITH YesCanDo

Ready to apply for a mortgage? Call YesCanDo on phone number 033 0088 4407 or message our advisors on WhatsApp. We will then make contact and ask you a few questions about your situation and arrange a meeting. Remember we charge. NO FEE for our service! The first time we speak we will need to know these bits of information if you’re a first time buyer looking to buy your first home.

Step 2 – DISCUSS & GET MORTGAGE ADVICE

One of our local mortgage advisers can meet with you or alternatively have a chat over the phone. This will allow us to get a clear understanding of what you want to achieve and how we can help.

Step 3 – WE SEARCH THE MARKET

We will search the WHOLE mortgage market and find you the best rates, deals, and mortgage products. We look at the best overall value of a mortgage deal for you and your situation when getting a mortgage. Get the best mortgage rates and deals!

Step 4 – MORTGAGE READY

Once you choose your best mortgage rate/deal, we will start the mortgage application process for you. Once it is successful you will receive a decision in principle (DIP). This is the first step of getting a mortgage approved and getting the best mortgage products. Some people worry this will affect your credit score! Stop worrying as it will not affect your credit score! Most estate agents require a DIP to accept an offer.

FAQs

How much deposit do I need to buy a house?

The biggest question that most first time buyers have is, how much deposit will they need to save until they can buy a house?

With house prices continuing to rise and lending crisis tightening, it is becoming more difficult for people to save the best amount of money they need to buy a home. Many first time buyers are unsure how long they need to continue saving before they can get their desired mortgage.

This guide will tell you everything you need to know about how deposit mortgages work and how much a first time buyer is likely to need for a deposit.

Will my lender let me rent my property out?

If you need to move out of your property, one of the first questions you will ask yourself is ‘will my lender let me rent out my property?’ The answer is, probably not! Although a few banks and building societies may give you consent to let your property, the majority will not.

Will I be turned down for a mortgage because of my overdraft? 

This is a question often asked when needing to arrange a mortgage.  Most mortgage lenders will not turn you down for a mortgage as long as you do not have an over-reliance on the overdraft.

Will my credit score affect the speed of my mortgage application?

Your credit score does not directly affect the speed of the mortgage application however a higher score is always better. We highly recommended working to improve your credit score because this will give you a wider range of option with deals from more time-efficient lenders.

What is an affordability assessment?

An affordability assessment is completed by both a broker and the lender. Your broker will check your financial affordability of the mortgage you want. The lender will also complete this check to make sure you are financially sound and can afford the mortgage repayments based on your income and outgoings. You’ll need to supply things the lender want to see such as things like your payslips, bank statements, driving licence, credit check, current address and more for this assessment.

Are mortgage brokers regulated?

Yes, mortgage brokers are authorised and regulated by the financial conduct authority (FCA).

Further recommended information

How long does a remortgage take?: Remortgaging now is a great time to not only grab a historically low-interest rate but also it is a superb time to sort out your finances and improve your credit score and credit rating. In the guide, we will show the quickest and most efficient way to remortgage and a few tips on getting the lenders lowest rates and best deal at no cost! So how long does the remortgage process take? Read the mortgage guide linked above. You will need to get valuation completed of your current address (that you are remortgaging) in order to give you a true property value.

Contact YesCanDo Money who is a mortgage broker who will be able to get your current mortgage application and take it over for you. We will advise and support you throughout the process for FREE!

For more information on all things mortgages and everything you’ll need to get a mortgage then please do contact our FREE mortgage service.

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Steve Roberts
Steve Roberts

Stephen Roberts MAQ is the founder of YesCanDo Money, Hampshire's largest no-fee mortgage brokers. With over 30 years of mortgage experience, he has advised and helped thousands of First-time buyers buy their first home and home movers buy their dream home. Speak to a mortgage expert today by completing our contact form:

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