Mortgage Process Guide
Buying a property can feel complicated because several things happen at the same time.
Your mortgage adviser is working on the mortgage, your lender is assessing the application and property, your solicitor or conveyancer is dealing with the legal work, and the estate agent is communicating between the buyer and seller.
Understanding who does what — and what happens next — can make the process much easier to follow.
This guide explains the typical mortgage and home-buying journey in England, from your initial preparation through to receiving your keys.
Step 1 – Understand Your Financial Position
Before you start seriously viewing properties, it is useful to understand what you may realistically be able to afford.
This means considering more than simply the maximum amount a mortgage lender might offer.
Think about:
Your income
Your available deposit
Existing loans and credit commitments
Regular household expenditure
Your preferred monthly mortgage payment
The costs associated with buying a property
The amount of savings you would like to retain after completion
A mortgage is a long-term financial commitment. The objective isn't simply to establish the maximum you can borrow, but to understand what is appropriate and affordable for your circumstances.
Our Mortgage Calculators can help you explore different mortgage amounts, terms and monthly payments.
Step 2 – Prepare Your Documents
Getting organised early can help prevent unnecessary delays later.
Depending on your circumstances, documents commonly required during the mortgage process can include:
Passport or photographic identification
Proof of address
Recent personal bank statements
Recent payslips
Evidence of your deposit
Details of existing credit commitments
Accounts and tax documents if you're self-employed
Existing mortgage statement if you're already a homeowner
Additional documents may be required depending on your circumstances and the lender selected.
For a more detailed list, read our Documents Needed for a Mortgage guide.
Step 3 – Check Your Credit Information
Your credit history can influence which lenders and mortgage products may be available to you.
Before proceeding, it can be useful to review the information recorded about you.
Check that your address history is accurate and review existing credit accounts, balances and payment history.
If you've previously experienced missed payments, defaults, County Court Judgments or other credit difficulties, tell your mortgage adviser before an application is made.
The details and timing of previous credit issues can be relevant when considering lender criteria.
You can obtain a detailed view of your credit information here: Get Your Full Credit Report
Step 4 – Have Your Initial Mortgage Conversation
You don't need to wait until you've found a property before speaking to a mortgage adviser.
An early conversation can help establish:
Your potential borrowing capacity
Your available deposit
Your approximate loan-to-value
Potential monthly payments
Relevant lender criteria
Any issues that may need to be addressed before applying
This can help you establish a more realistic property-search budget.
It can be particularly useful if your circumstances aren't completely straightforward, such as being self-employed, having recently changed jobs, receiving variable income or having previous credit issues.
Step 5 – Obtain an Agreement in Principle
An Agreement in Principle — also known as an AIP, DIP or Mortgage in Principle — is an initial indication of what a lender may potentially be prepared to lend.
It can help demonstrate that you've started investigating your mortgage position before making an offer on a property.
However, an Agreement in Principle isn't a mortgage offer and doesn't guarantee that the lender will approve the eventual application.
For a detailed explanation, read our Agreement in Principle Guide.
Step 6 – Start Viewing Properties
Once you have a better understanding of your mortgage position and budget, you can begin your property search.
When viewing properties, look beyond decoration and presentation.
Consider matters such as:
Location
Property type
Age and construction
General condition
Heating system
Energy efficiency
Parking
Extensions or alterations
Freehold or leasehold tenure
Service charges where applicable
Remaining lease length where applicable
The property itself forms part of the mortgage lender's assessment.
If you're considering a property that appears unusual in some way, give the details to your mortgage adviser before making assumptions about mortgage availability.
Step 7 – Make an Offer
Once you've found a property you want to buy, you can make an offer through the estate agent.
Think carefully about what you're prepared to pay and establish your maximum before entering negotiations.
If your offer is accepted, the estate agent will normally ask for information such as:
Your solicitor's details
Your mortgage adviser's details
Evidence of your deposit
Your Agreement in Principle
Information about your buying position
An accepted offer is an important milestone, but in England it doesn't normally mean that you legally own the property or that the transaction is legally binding.
Step 8 – Tell Your Mortgage Adviser
Once your offer has been accepted, contact your mortgage adviser promptly.
Until this point, much of the mortgage discussion may have been based on an estimated purchase price.
You now have an actual property and agreed price.
Your adviser can review:
The agreed purchase price
Your deposit
Required mortgage amount
Loan-to-value
Property details
Your current circumstances
Available mortgage products
Relevant lender criteria
Mortgage products and rates can change, so the mortgage considered when you first obtained an AIP may not necessarily be the mortgage recommended when you are ready to apply.
Step 9 – Instruct a Solicitor or Conveyancer
Your solicitor or conveyancer deals with the legal side of the purchase.
Their work can include:
Reviewing the contract
Checking the property's legal title
Conducting searches
Raising enquiries
Reviewing lease information where applicable
Dealing with the lender's legal requirements
Arranging exchange of contracts
Transferring funds at completion
If you're using a mortgage, check that your chosen solicitor can act for the mortgage lender.
Your mortgage adviser deals with the mortgage.
Your solicitor or conveyancer deals with the legal transaction.
Although the two processes are connected, they are separate.
Step 10 – Review the Mortgage Recommendation
Before submitting the full application, your mortgage adviser can assess the available mortgage options and explain the recommendation.
The lowest interest rate isn't necessarily the lowest-cost or most appropriate mortgage.
Factors to consider can include:
Interest rate
Product fees
Initial fixed or variable period
Monthly payment
Mortgage term
Early repayment charges
Overpayment provisions
Incentives such as valuation or legal benefits
Lender criteria
Overall cost over the relevant period
You should understand why a particular mortgage has been recommended before proceeding.
Step 11 – Submit the Full Mortgage Application
Once you're ready to proceed, the full mortgage application is submitted to the lender.
This is different from an Agreement in Principle.
The lender may now verify the information provided and request supporting documents.
These could include bank statements, payslips, accounts, tax documents, deposit evidence or other information relevant to your circumstances.
Responding promptly to requests for additional information can help keep the application moving.
Step 12 – Mortgage Underwriting
Underwriting is the lender's detailed assessment of the application.
The underwriter may review areas such as:
Income
Employment
Affordability
Existing financial commitments
Credit history
Deposit
Source of funds
Supporting documents
Property information
The lender may ask additional questions during this stage.
A request for further information doesn't automatically mean something is wrong. Sometimes the lender simply needs clarification or additional evidence before making its decision.
Step 13 – The Property Valuation
The lender also needs to assess the property being offered as security for the mortgage.
A mortgage valuation is primarily carried out for the lender's purposes.
It helps the lender decide whether the property represents acceptable security for the proposed mortgage.
It shouldn't automatically be treated as a detailed assessment of the property's condition.
Step 14 – Consider an Independent Survey
A lender's valuation and a buyer's survey serve different purposes.
Depending on the property's age, construction and condition, you may want to arrange your own survey.
A survey may help identify potential problems or areas requiring further investigation.
If something significant is identified, discuss the findings with the appropriate professional before deciding how to proceed.
Step 15 – The Legal Work Continues
While the lender is assessing your mortgage, your solicitor will normally be progressing the conveyancing.
This may include searches and enquiries concerning matters such as the property title, local authority information and other legal issues relevant to the transaction.
This is why receiving a mortgage offer doesn't necessarily mean you're immediately ready to collect the keys.
The mortgage and legal processes need to come together.
Step 16 – Receive Your Mortgage Offer
If the lender is satisfied with the application and property, it may issue a formal mortgage offer.
This is one of the most important milestones in the process.
Read the offer carefully.
Check:
Borrowing amount
Interest rate
Mortgage term
Monthly payment
Product period
Fees
Early repayment charges
Special conditions
Your mortgage adviser can explain the mortgage recommendation and the important features of the product.
Remember that you still haven't completed the property purchase at this point.
Step 17 – Consider Protection
Your mortgage answers the question:
How can I finance the property?
Protection considers another question:
What happens if life doesn't go according to plan?
Depending on your circumstances, this could involve considering:
Life Insurance – designed to provide a benefit if the insured person dies during the policy term, subject to the policy conditions.
Critical Illness Cover – designed to provide a benefit following diagnosis of a specified critical illness that meets the insurer's policy definition.
Income Protection – designed to provide an income if illness or injury prevents you from working, subject to the policy terms and underwriting.
Your existing savings, employer benefits and other protection should also be considered before determining whether additional cover is appropriate.
Step 18 – Prepare for Exchange of Contracts
Before exchange, your solicitor will make sure the necessary legal work has been completed and explain the implications of proceeding.
You should also make sure you understand:
Your mortgage offer
The purchase price
Your deposit requirements
The survey findings
Relevant legal enquiries
The agreed completion arrangements
Insurance requirements
If there's anything you don't understand, ask before exchanging contracts.
Step 19 – Exchange of Contracts
Exchange is a major legal milestone.
Your solicitor will explain exactly what this means for your transaction.
Once contracts have been exchanged, the transaction generally becomes legally binding and a completion date is agreed.
At this point, you're getting very close to owning the property.
Step 20 – Don't Take Out New Credit Before Completion
Even after receiving your mortgage offer, avoid assuming that the lender has finished considering your financial circumstances forever.
A lender may carry out further checks before releasing the mortgage funds.
Taking out a personal loan, financing a car, significantly increasing credit-card borrowing or making other substantial changes to your finances could potentially affect your mortgage position.
If your circumstances change between application and completion, tell your mortgage adviser.
Step 21 – Prepare for Completion
As completion approaches, your solicitor will arrange the final legal and financial steps.
You can also start preparing for the practical side of moving.
This might include:
Arranging removals
Organising utilities
Arranging broadband
Preparing address changes
Organising insurance
Preparing any remaining funds requested by your solicitor
Your solicitor will tell you when money needs to be transferred and how this should be done.
Always verify bank details carefully before transferring significant amounts of money.
Step 22 – Completion Day
On completion day, your solicitor arranges the transfer of the purchase funds.
Once the seller's solicitor confirms that completion has taken place, the estate agent can normally release the keys.
You are now the legal owner of your new home.
Time to collect the keys.
Step 23 – Your First Mortgage Payment
Your first mortgage payment may not necessarily be identical to the normal monthly payment shown on your mortgage illustration.
The amount can be affected by the completion date and the lender's payment cycle.
Your lender should provide information explaining the first payment and when it will be collected.
Make sure sufficient funds are available in the account used for your mortgage Direct Debit.
Step 24 – Keep Your Mortgage Under Review
Completion isn't the end of your mortgage journey.
Keep your mortgage offer and other important documents somewhere safe.
In particular, make a note of when your current mortgage product ends.
If you have a fixed-rate mortgage, starting the review process before the fixed period expires can give you time to consider the options available rather than leaving the decision until the last minute.
Your circumstances, property value and the mortgage market may all be different by then.
Who Does What During the Process?
Mortgage Adviser
Helps you understand your mortgage position, researches appropriate mortgage options, makes a recommendation where advice is provided and assists with the mortgage application.
Mortgage Lender
Assesses your application, affordability, credit position and the property before deciding whether to lend.
Solicitor or Conveyancer
Handles the legal work involved in transferring ownership of the property.
Estate Agent
Acts for the seller in marketing the property and helps communicate between the parties during the transaction.
Surveyor
Assesses the property according to the type of valuation or survey being undertaken.
Understanding these different roles can make it easier to know who to contact when you have a question.
The Mortgage Process at a Glance
Preparing to buy
☐ Review your finances
☐ Prepare your deposit
☐ Check your credit information
☐ Prepare your mortgage documents
☐ Speak to a mortgage adviser
☐ Obtain an Agreement in Principle
Finding your home
☐ Search for properties
☐ Attend viewings
☐ Check the property details
☐ Make an offer
☐ Have your offer accepted
Arranging the mortgage
☐ Tell your mortgage adviser
☐ Instruct your solicitor
☐ Review the mortgage recommendation
☐ Submit the mortgage application
☐ Provide requested documents
☐ Lender underwriting
☐ Property valuation
☐ Consider your own survey
☐ Receive the mortgage offer
Getting ready to complete
☐ Legal enquiries completed
☐ Protection considered
☐ Insurance arranged when required
☐ Exchange contracts
☐ Prepare completion funds
☐ Arrange your move
Completion
☐ Mortgage funds released
☐ Purchase completes
☐ Collect your keys
☐ Prepare for your first mortgage payment
How Long Does the Mortgage Process Take?
There isn't one standard timeframe that applies to every purchase.
The mortgage itself is only one part of the transaction.
Timescales can be affected by factors including:
How quickly documents are provided
Lender underwriting
Property valuation
Survey findings
Solicitor enquiries
Searches
Property chains
Leasehold requirements
Issues with the property title
The circumstances of the buyer and seller
A straightforward mortgage application can sometimes progress quickly while the overall property transaction takes considerably longer because of legal or property-related matters.
For this reason, avoid treating an estimated completion date as guaranteed until the relevant professionals confirm the position.
Ready to Start Your Mortgage Journey?
You don't need to know every stage of the mortgage process before speaking to an adviser.
The important thing is understanding each decision as you reach it.
Cambs Ely Mortgages helps first-time buyers, home movers and other mortgage applicants understand their mortgage options and navigate the process from initial affordability through to mortgage offer and completion.
We work with clients in Ely, Cambridge, Cambridgeshire, East Anglia and across England, with appointments available remotely.
Building Blocks for a Brighter Future.
Important Information
This guide is for general information and educational purposes. Individual property transactions and mortgage applications can follow different processes depending on the circumstances, lender, property and legal requirements.
It should not be treated as personalised mortgage, financial, legal, tax or insurance advice.
Mortgage applications are subject to lender criteria, affordability, underwriting and satisfactory property assessment.
Your home may be repossessed if you do not keep up repayments on your mortgage.