Factors that Affect Approval Time
- The lender: Different lenders have different policies and procedures when it comes to approving mortgages. Some lenders may have a quicker turnaround time than others, so it’s important to do your research and choose a lender that can meet your needs.
- Type of mortgage: There are many different types of mortgages available and each has its own application process and approval timeline. For example, a fixed-rate mortgage may have a different approval timeline than a variable-rate mortgage.
- Your financial situation: Your financial situation, including your credit score, income and debt-to-income ratio can also affect the time it takes to get approved for a mortgage. If you have a strong financial profile, you may be able to get approved more quickly than someone with a weaker financial profile.
- The property you are buying: The property you are buying can also affect the approval timeline. For example, if the property is a new build, the lender may need to conduct additional checks and valuations before approving the mortgage.
The Mortgage Application Process
The mortgage application process can be broken down into several key steps. Each step can affect the time it takes to get approved for a mortgage and below is an overview of the process:
Step 1: Pre-Application
Before you apply for a mortgage, it’s a good idea to do some research and make sure you meet the lender’s eligibility criteria. This can help you avoid wasting time on an application that may be rejected. You can use online tools to compare mortgage rates and lenders and you can also speak with a mortgage broker to get advice on the best options for your situation.
With regards to speaking with a broker, although we are mortgage brokers that are based in Cardiff, we cater for customers nationwide.
Step 2: Application
Once you’ve found a lender that you want to apply with, you’ll need to fill out a mortgage application. This involves providing personal and financial information such as your income, debts and credit score. You may also need to provide documentation to support your application such as bank statements and proof of income.
Step 3: Credit Check
After you submit your application, the lender will conduct a credit check to assess your creditworthiness. This can affect the time it takes to get approved for a mortgage as the lender may need to request additional information or clarification if they find any issues on your credit report.
Step 4: Affordability Assessment
Once your credit check is complete, the lender will conduct an affordability assessment to determine how much you can afford to borrow. This’ll involve looking at your income, expenses and other financial commitments to determine your debt-to-income ratio.
Step 5: Property Valuation
If you are buying a property, the lender will also conduct a property valuation to ensure that the property is worth the amount you are borrowing. This can also affect the time it takes to get approved for a mortgage because the valuation process can take several weeks depending on the property and location.
Step 6: Mortgage Offer
If your application is successful, the lender will issue a mortgage offer outlining the terms and conditions of the mortgage.
How Long Does All This Take?
Taking the above factors and the details involved with approving a mortgage, you should hopefully understand that it’s something that can’t be achieved in a few hours. However, if everything goes smoothly and you have all the necessary documentation, you can expect your mortgage to be approved within 2 to 6 weeks. However, it’s important to remember that the process can take longer if there are any issues or complications that need to be addressed. To help speed up the process, it’s a good idea to be prepared with all the necessary documentation and information and to be responsive to any requests from your lender.
What About Other Types of Mortgages?
It’s worth pointing out that the above timeline is mostly applicable for fixed rated, interest and variable mortgages. For other types of mortgages such as a second charge mortgage or a buy-to-let mortgage, the timeline may differ. For example, those that are taking out a second charge mortgage (i.e. a home extension loan) can receive the loan much faster as the loan is based on your asset.
Hopefully our guide on how long it takes to get approved for a mortgage has answered all your questions. However, if you require further information, feel free to get in touch and we will try to provide our assistance where possible.