Getting a mortgage is one of the biggest financial steps you will take in your life. Whether you are a first-time buyer or looking to move into a new home, understanding the mortgage process can help you save time, money, and stress. In this guide, we’ll walk you through everything you need to know about how to get a mortgage in the UK.
1. What is a Mortgage?
A mortgage is a type of loan you take out from a mortgage lender (bank, building society, or specialist lender) to buy a property. You’ll pay it back in monthly instalments over a set period, usually 25–35 years, with interest.
There are different types of mortgages, including:
- Fixed-rate mortgage – your interest rate stays the same for a set period.
- Tracker mortgage – interest follows the Bank of England base rate.
- Interest-only mortgage – you pay only interest each month and repay the loan later.
- Repayment mortgage – you pay both interest and loan amount monthly.
2. Steps to Get a Mortgage
Step 1: Check Your Credit Score
Your credit score plays a key role in whether you’ll be approved for a mortgage. Lenders use it to judge how reliable you are at repaying debts. Before applying, check your credit report and try to:
- Pay off outstanding debts
- Avoid missed payments
- Register on the electoral roll
Step 2: Work Out Your Budget
Lenders usually require a deposit of at least 5–10% of the property price. The larger your deposit, the better your chances of securing a lower mortgage interest rate. Use a mortgage calculator to understand how much you can borrow and what your monthly repayments might look like.
Step 3: Get a Mortgage in Principle (Agreement in Principle)
A Mortgage in Principle (MIP) shows how much a lender may be willing to let you borrow, based on your income and financial situation. Having an MIP helps when making property offers, as it shows sellers you are a serious buyer.
Step 4: Compare Mortgage Lenders and Deals
Don’t just go with your bank. Compare mortgage deals from multiple lenders to find the best mortgage rates. You can also use a mortgage broker to save time and access exclusive deals.
Step 5: Submit Your Mortgage Application
When you’ve found a property and a deal you like, submit a mortgage application. You’ll need to provide documents such as:
- Proof of income (payslips, tax returns)
- Bank statements
- Proof of deposit
- ID and address verification
Step 6: Property Valuation and Mortgage Approval
The lender will conduct a property valuation to make sure it’s worth the price you’re paying. If everything checks out, you’ll receive a mortgage offer, which usually lasts for 3–6 months.
3. Common Questions About Getting a Mortgage
How much deposit do I need for a mortgage?
Typically, you’ll need at least 5% of the property value, but many lenders prefer 10–20% for better rates.
How long does the mortgage process take?
From application to mortgage approval, it usually takes 2–6 weeks, depending on the lender.
Can I get a mortgage with bad credit?
Yes, but you may face higher interest rates and may need a larger deposit. Specialist bad credit mortgage lenders can help in such cases.
4. Tips to Improve Your Chances of Getting a Mortgage
- Save for a larger deposit
- Keep your credit history clean
- Reduce your debts before applying
- Avoid taking out new loans or credit cards before your application
- Consider speaking with a professional mortgage adviser
Final Thoughts
Getting a mortgage doesn’t have to be overwhelming. By improving your credit score, saving for a deposit, comparing mortgage lenders, and getting professional advice, you’ll increase your chances of securing the best mortgage deal for your situation.
If you’re a first-time buyer or looking to remortgage, start preparing early and speak with a trusted adviser to make the process smoother.