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Steps and Considerations when Applying for a Mortgage

11th Sep 2023

If you’re a first-time buyer and unfamiliar with the process of applying for a mortgage, then we have pulled together the steps and considerations when applying for a mortgage. Here’s a general overview of the process:

  • Assess Your Finances: Before applying for a mortgage, it’s important to evaluate your financial situation. You will need to calculate your income, expenses, and any existing debts you have which will all assist with identifying how much you could potentially afford to borrow.
  • Credit Check: Lenders will want to assess your credit history alongside other criteria, to determine your creditworthiness. The higher your credit score the more improved your chances are of being approved for a mortgage and securing a better interest rate.
  • Deposit: You’ll be required to provide a deposit, which is a percentage of the property’s value. The minimum deposit typically ranges from 5% to 20%, but a larger deposit can lead to better mortgage rates.
  • Mortgage Agreement in Principle (AIP): Before you start house hunting, consider obtaining an Agreement in Principle (AIP) from a lender. This is a conditional approval that shows how much you could potentially borrow, based on a preliminary assessment of your finances.
  • House Hunting: Once you have an AIP, you can begin your search for a suitable property within your budget.
  • Choose a Mortgage Type: There are various types of mortgages available, including fixed-rate, variable-rate, and tracker mortgages. Each type has its own features and benefits. Research and choose the one that best suits your financial situation and preferences.
  • Mortgage Application: When you find a property, you’ll need to submit a formal mortgage application to your chosen lender. You’ll need to provide detailed information about your finances including savings and expenditure, employment status, and the property itself. This can be done over the phone or in-person.
  • Valuation and Survey: The lender will then arrange a property valuation to confirm it’s worth the amount you’re borrowing. It is also advisable to get a more comprehensive survey which will assist with identifying any potential issues with the property.
  • Mortgage Offer: If your application is successful and the mortgage company are happy with the property valuation, the lender will issue a formal mortgage offer. Thoroughly review the terms and conditions of the offer before accepting.
  • Legal Process: You’ll need to engage a solicitor or conveyancer to handle the legal aspects of the property purchase. They will perform searches, handle contracts, and ensure all legal requirements are met.
  • Exchange Contracts: Once all legal checks are complete, you and the seller will exchange contracts, legally committing both parties to the transaction.
  • Completion: On the agreed-upon completion date, the remaining funds are transferred to the seller, and you become the legal owner of the property. The mortgage funds are also released to the seller.
  • Repayment: After completion, you’ll start making regular mortgage repayments as agreed with the lender.

Remember that the mortgage process can vary based on individual circumstances and the lender you choose. It’s advisable to seek professional advice from mortgage brokers, financial advisors, and legal experts to ensure you make informed decisions throughout the process.

At 3mc, we have a team of expert advisers who can discuss all your mortgage requirements. If you would like to discuss your options, give the 3mc team a call on 0161 962 7800.

All calls are recorded for training and monitoring purposes. 3mc for intermediaries only.


*Your home may be repossessed if you do not keep up repayments on your mortgage. 3mc (UK) Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register https://register.fca.org.uk/s/ under reference 302992. Please note: The FCA do not regulate Business Buy to Let Mortgages.