Q: What Happens After Your Mortgage Application Is Submitted?
Once your mortgage adviser has found a suitable mortgage and your application has been submitted, the lender will begin their checks.
This page explains what may happen next and what you may need to do while your application is being reviewed.
Q: Will the lender need more information from me?
Possibly.
Sometimes a lender may ask for extra documents or more information after the application has been submitted.
If this happens, Green & Green will contact you and explain exactly what is needed.
Q: Can I still be declined after a Mortgage in Principle has been approved?
Yes, it is possible.
A Mortgage in Principle is a good indication that your application may be accepted, but the lender still needs to fully review your case before making a final decision.
Q: What credit score do I need to pass the application?
There is no single credit score that guarantees approval.
Each lender has its own internal scorecard and lending criteria. The right lender for you will depend on your full situation, not just your score.
Q: What do lenders look at during the application process?
Lenders usually check that the information on your application is supported by your documents.
They may review:
Your income
Your credit file
Your bank statements
Your affordability
Your deposit
The property details
They want to make sure you can afford the mortgage now and in the future.
Q: How long does it take to be fully approved for a mortgage?
This depends on:
The lender
The complexity of your case
How quickly documents are provided
The lender’s current workload
How quickly the valuation is completed
Some cases are quick. Others take longer if the lender needs extra information.
Q: Will the lender need to physically value the property?
Not always.
In many cases, lenders try to value the property online first. If they cannot get enough information online, they may arrange a physical valuation.
Q: Do I need to contact the estate agent to organise the valuation?
No.
Green & Green will add the estate agent’s contact details to the mortgage application. The lender’s valuer will then contact the estate agent directly if a valuation needs to be arranged.
Q: What happens if the mortgage valuation comes back lower than expected?
This is called a down valuation.
If this happens, you usually have three options:
Proceed at the agreed purchase price and increase your deposit
Renegotiate the purchase price
Pull out of the purchase
If it happens during a remortgage, you may be able to challenge the valuation or try another lender.
Q: Will the lender look at my bank statements?
Some lenders ask for bank statements and some do not.
It depends on the lender, the mortgage type and your situation.
Q: I have gambling on my bank statements. Will that go against me?
It depends on the level of gambling and how it compares to your income.
Small amounts may not be an issue. However, if gambling appears to be regular, high-risk or beyond your means, it could affect the lender’s decision.
Q: How long does it take to get the valuation booked in?
This depends on the lender and the valuer’s availability.
Some lenders instruct the valuation as soon as the application is submitted. Others wait until the case has been partly or fully reviewed.
Q: What happens if rates change after my application is submitted?
Green & Green uses software to monitor interest rates.
If your lender reduces rates after your application has been approved, your adviser may be able to amend your rate.
Q: When do I pay my deposit?
You usually pay your deposit at exchange of contracts.
This is typically around one week before completion, after the legal work has been completed.
Q: When do I pay stamp duty?
You usually pay stamp duty to your solicitor just before completion, along with any other money needed to complete your purchase.
Q: What happens to my mortgage application if my purchase falls through?
If your mortgage offer has already been approved, you may be able to transfer the offer to another property.
If the application has not reached offer stage, the application would usually be cancelled.
Q: Can I change jobs during the application process?
It is best to avoid changing jobs during the mortgage application process if possible.
Lenders usually like to see stable employment and may be cautious if you move into a new role or probation period.
Q: Can I take out new credit during the application process?
No, it is best not to apply for new credit while your mortgage application is ongoing.
New credit can affect your credit score and affordability. It could also mean your credit file no longer matches the information on your mortgage application.
Q: Should I get a survey done on the property?
Yes, Green & Green recommends getting a full building survey.
You only view a property for a short time, so a survey can help you understand its true condition before you fully commit.
Q: Will the lender contact my employer?
Usually, no.
In rare cases, a lender may ask for an employer reference. This may happen if you are in a probation period or have an unusual income structure.
Q: What happens when I get my mortgage offer?
When you receive your mortgage offer, read it carefully.
Check that the details are correct and that you are comfortable with the terms. If anything is unclear, contact your adviser.
Q: Do I need to send my solicitor a copy of the mortgage offer?
No.
The lender sends a copy of the offer directly to your solicitor.
Q: What is exchange of contracts?
Exchange of contracts is the stage where you and the seller sign contracts and the purchase becomes legally binding.
At this point, you are committed to buying the property.
Q: When do I need buildings and contents insurance?
You need buildings insurance in place from exchange of contracts, with cover starting on your completion date.
This is the day you become the legal owner of the property.
Need Help With Your Application?
If your mortgage application is in progress and you have a question, Green & Green can help explain what is happening and what comes next.
