Complete Guide to Applying for a Mortgage

When you apply for a mortgage in 2025 it can often seem a daunting prospect. The labyrinth of technology, complex calculations and myriad options may appear overwhelming. However, securing a mortgage is a critical step in most home buying journeys. Whether you're a first time buyer bracing yourself for the initial plunge into the property market, a current homeowner looking to move or perhaps, exploring the world of property investment, our guide will equip you with the knowledge you need.

How to Prepare for Applying

Thorough preparation is crucial before you embark on the process of applying for a mortgage, as it ensures you're in the best position to secure the most favourable deal. It's essential to have all the necessary documentation readily available, including but not limited to, your recent payslips, tax returns, and evidence of your deposit. This will speed up the application process and help demonstrate your financial stability to potential lenders.

Moreover, it's advisable to verify the accuracy of your credit records held by the major credit reference agencies. These agencies can provide free reports, allowing you to review your credit history with ease. By doing so, you can rectify any discrepancies or inaccuracies promptly, which could potentially impact your credit score and, subsequently, your mortgage application.

Use our mortgage affordability calculator to get an initial estimate of how much you might be able to borrow.

What Will You Need to Apply for a Mortgage?

Embarking on your mortgage application journey necessitates thorough preparation, including gathering essential documents required by lenders. Here's a rundown of the key documents you'll need to have at your disposal:

How Much Deposit Do You Need?

The magnitude of your deposit holds significant sway over the mortgage terms you can secure. Typically, a more substantial deposit translates to more favourable interest rates, simply because it reduces the lender's risk. Therefore, the larger your deposit, the more attractive your mortgage deal is likely to be.

The baseline deposit requirement for a majority of mortgage products sits at 5%, although there are instances where some lenders may entertain a lower percentage. However, it's worth noting that a deposit of this size is usually paired with higher interest rates and potentially more stringent approval criteria.

On average, buyers aim to accumulate a deposit amounting to around 10% of the property's value. Deposits of this size often unlock better mortgage deals and offer a wider range of options. That said, there's no upper limit to the size of a deposit, and if your financial circumstances permit, a larger deposit can provide access to the most competitive interest rates and loan terms.

What Does a Mortgage Lender Take Into Consideration?

The evaluation of a mortgage application is a comprehensive process, with lenders scrutinising several elements to gauge your suitability as a borrower. Each of these factors contributes to a lender's understanding of your financial standing and reliability, helping them to make a balanced decision.

Getting an Agreement in Principle

Prior to delving into property searches, a prudent step is to secure an 'Agreement in Principle' (AIP), also known as a 'Mortgage in Principle', from a potential lender. This preliminary document essentially outlines the amount the lender may be prepared to lend you, contingent on their initial evaluation of your financial circumstances.

Do remember, however, that while beneficial, an AIP is not a binding agreement. The final mortgage offer can vary depending on the thorough evaluation of your financial status and the property's valuation. Thus, it's crucial to stay mindful of your financial commitments and continue practicing sound financial habits even after receiving an AIP.

Get your Agreement in Principle quickly and easily through our trusted lenders.

Applying for Your Mortgage

After identifying your dream property and deciding to proceed with the purchase, the journey to secure a mortgage formally commences. If you're planning to co-purchase the property with another person, such as a partner or spouse, keep in mind that they, too, will need to participate in and provide information for the application process.

Given the complexity and significance of the mortgage application, it could be beneficial to consider engaging the services of a mortgage advisor. An advisor can offer expert guidance throughout the process and assist in identifying a mortgage deal that best fits your unique financial situation.

Our qualified mortgage advisors can guide you through the entire application process and help secure the best deal for your circumstances.

How Long Does the Mortgage Application Process Take?

The duration of the mortgage application process can vary considerably, often ranging from several weeks to a couple of months. This timeline is influenced by a multitude of factors, including the particular lender's procedures, the complexity of your financial situation, and any unforeseen complications or delays that may arise.

Final Stages

After gathering all the requisite details and successfully navigating the series of checks and verifications, the lender will make an informed decision on your mortgage application. Should the application be approved, you'll receive a formal mortgage offer. This document elucidates the specifics of your loan, such as the borrowed amount, the interest rate, the loan term, and other pertinent terms and conditions.

The concluding phase of the mortgage application process involves the transfer of mortgage funds. These funds are typically sent directly to your conveyancing solicitor, a legal professional engaged to handle all the legal aspects of the property transaction. Upon receipt of the funds, your solicitor will complete the transaction by paying the agreed-upon sum to the property seller on your behalf.

Summary

Congratulations, you've now completed the mortgage application process! Applying for a mortgage may seem daunting initially, but with proper preparation and understanding of the process, it becomes much more manageable. Remember that each lender may have slightly different requirements and timelines, so it's worth shopping around to find the best deal for your circumstances.

The key to a successful mortgage application lies in thorough preparation, maintaining good financial habits, and seeking professional advice when needed. Our team at Homemove is here to support you throughout your homebuying journey.

If you need any more help with mortgages, you can read our comprehensive guide to mortgages, or explore our mortgage services for expert support throughout the process.