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How Long Does the Mortgage Process Take?

Sep 04, 2024
How long does the mortgage process take?
If you’re taking out a mortgage to buy a new home and are wondering how long the application process takes, we have all the answers. Our comprehensive guide explores the stages of the mortgage application process, from getting an agreement in principle to exchanging contracts.

What is a mortgage?

A mortgage is a loan from a bank or building society that goes towards the total cost of the property you want to purchase. The borrower agrees to pay the lender monthly instalments over a set period. 
 

Stages of the mortgage application process

Getting approved for a mortgage typically takes two to six weeks, but this may vary depending on your circumstances, the lender’s availability and the findings from your property’s valuation. 
 
Task Time
Finding the right mortgage
 1-3 days
Getting a mortgage in principle
 24 hours
Applying for a mortgage
 3-6 hours
Getting your mortgage evaluated
 1-2 weeks
Receiving a mortgage offer
 2-4 weeks

 

1. Finding the right mortgage 

 
Before applying for a mortgage, you’ll need to find a suitable deal. There are several types of mortgages  available, from fixed- and variable-rate options to tracker and discount mortgages. 
 
You can contact your mortgage broker for expert advice.
 

2. Getting a mortgage in principle 

 
Once you’ve found the right deal, you’ll need to get a mortgage in principle (MIP), also known as an agreement in principle (AIP) and a decision in principle (DIP). This outlines how much you can borrow based on the information you provide. It doesn’t guarantee you’ll get the full mortgage, but it can help speed up the application process. 
 
An MIP is typically valid for up to 90 days.  
 

3. Applying for a mortgage 

 
Now it’s time to apply for your mortgage. You can use a broker to speed up the process, as they’ll deal with the paperwork. You’ll need the following documents: 
 
• Three to six months’ worth of utility and council tax bills 
• A P60 from your employer (if employed)* 
• Proof of income for the last three years 
• Details of your outgoings (childcare, travel, insurance policies, etc.) 
• Proof of benefits or additional income (if applicable) 
 
* If you’re self-employed, you’ll need your last two years of SA302 tax calculations and tax year overviews. Learn more about buying a home when self-employed in our guide.  
 

4. Getting your mortgage evaluated 

 
Your lender will instruct a surveyor to conduct a mortgage valuation. This is to ensure your property is worth the value of your loan. They’ll check its structural stability and study the housing market.  
 
There may be delays if you’ve offered more than the surveyor believes the property is worth. In this case, they may require a higher deposit or interest rate to balance the discrepancy.  
 

5. Receiving a mortgage offer 

 
Once the mortgage valuation is complete, your lender will gather the findings. You’ll typically receive your offer within 14 days of applying, but you may need to wait another two weeks to receive your formal offer. The timeline may vary depending on the complexity of your situation.  
 
A mortgage offer is valid for six months from the day you receive it.  
 
Discover our new build homes and flats in and around London. Our properties are modern, energy-efficient and well-located to cater to everyone’s lifestyles. We also have fantastic homebuying offers for first and second-time buyers, so you can buy or sell your home stress-free. 
 
Call or visit our Sales Advisers today to kickstart your homebuying journey with Barratt London.
 

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