Applying for a Mortgage – What You Need to Know

Applying for a mortgage can feel overwhelming, especially if you’re doing it for the first time. With so many steps involved and financial jargon to navigate, it’s easy to feel unsure about where to begin. But understanding the mortgage application process can make everything simpler and far less stressful.

At Orchard Mortgage Solutions, we’re here to guide you through each step. Whether you’re a first-time buyer, a home mover, or looking to remortgage, knowing what to expect can help you feel more confident and prepared.

This detailed guide explains everything you need to know about applying for a mortgage in the UK—from preparing your finances to getting your keys on completion day.

Step-by-Step Mortgage Application Process

1. Get Mortgage-Ready – Pre-Application Stage

Before you even speak to a lender, it’s essential to check your financial health. Mortgage lenders want to see that you manage your money responsibly. A poor credit score or outstanding debts can affect your chances of getting approved.

Here’s how to get prepared:

• Check your credit report from all major credit reference agencies like Experian, Equifax, and TransUnion. These are often free.
• Correct any errors you find. Mistakes can lower your credit score unfairly.
• Pay down debt where possible and avoid taking out new credit in the months before your mortgage application.
• Save for a deposit—most lenders require at least 5%, but a deposit of 10% or more will often secure better rates.

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2. Submit a Decision in Principle (DIP)

Once you’re financially ready, the next step is securing a Decision in Principle (DIP)—also known as an Agreement in Principle (AIP). This is a conditional agreement from a lender stating how much they may be willing to lend you.

The DIP is not a full mortgage offer, but it shows sellers you’re serious. It also gives you a clear idea of what you can afford before house-hunting.

To get a DIP, you’ll need to provide:

• Basic personal details
• Income information
• An overview of your financial commitments

This process usually involves a soft credit check and can often be completed online.

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3. Full Mortgage Application & Affordability Checks

When you’ve found your dream home and are ready to proceed, it’s time to submit your full mortgage application. This is a more detailed version of the DIP.

At this stage, you’ll need to provide:

• Proof of income (such as payslips or self-employed accounts)
• Bank statements
• Proof of ID and address
• Details about the property

Lenders will also carry out an affordability assessment to ensure you can afford the monthly mortgage payments—even if interest rates rise in the future. This stress test is designed to protect both you and the lender.

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4. Mortgage Valuation and Property Survey

Before your mortgage can be approved, the lender will want to assess the property’s value. This is known as a mortgage valuation.

The surveyor will check:

• The market value of the home
• Whether the property is suitable as security for the loan
• Any structural issues or necessary repairs

If the valuation comes back lower than the agreed purchase price or flags issues, you may need to renegotiate with the seller or even reconsider the purchase.

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5. Mortgage Offer Issued

Once your lender is happy with the property and your finances, they’ll issue a formal mortgage offer. This is a legally binding document confirming the amount you can borrow and the terms of the loan.

You’ll typically have a short window (usually around 7 days) to review and accept the offer, although most people accept immediately.

Until you exchange contracts, you can still walk away from the mortgage without being legally bound—though you may lose any upfront fees already paid.

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6. Exchange, Deposit & Completion

You’re nearly there! After accepting your mortgage offer, the final steps are:

• Exchanging contracts with the seller (this is legally binding)
• Paying your deposit via your solicitor
• Completion day, when the mortgage funds are released and you get the keys to your new home

Your solicitor will coordinate with your lender and the seller’s solicitor to finalise everything. Once complete, you officially become a homeowner!

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Helpful Tips and Final Thoughts

• Deposit requirements: Most UK lenders require at least a 5% deposit, though 10–20% is more typical for better interest rates.
• Timeline: A mortgage application can take anywhere from 2 to 8 weeks, depending on your circumstances and how quickly documents are submitted.
• Don’t rush: A rushed mortgage application often leads to delays or even rejections. Take the time to prepare properly.

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Ready to Apply for a Mortgage?

If you want expert advice and personalised support at every stage of your mortgage journey, Orchard Mortgage Solutions is here to help. We offer guidance on everything from improving your credit to choosing the best mortgage deals for your situation.

📞 Call us today 01257 543013 to speak with one of our expert advisers
📧 Or use our contact form to arrange a no-obligation consultation