image showing a happy couple

Useful guides

Mortgage types

Understand every stage of the UK mortgage process, including affordability checks, mortgage applications, valuations, exchange and completion.

Whether you are buying your first home or moving to a new one, purchasing a property is exciting but there are lots of steps to navigate along the way. Understanding how the full process works and what each stage involves can help you to prepare everything you need and put you in the best position for a smooth journey.

This step-by-step guide provides a breakdown of the mortgage and home purchase timeline, so you know what to expect from your initial mortgage enquiry to getting the keys to your new home. 

When you choose James Leighton as your mortgage broker, you can have peace of mind that we will support you every step of the way.

Image showing a piggy bank

Initial mortgage enquiry

The first step is to contact our team for an initial discussion to get an idea of the type of mortgage deals and loan amount you are likely to qualify for. During the initial discussion with one of our qualifiers, you will be asked about your property plans and will gather information about your income, how much deposit you have and any credit issues you have experienced.

Your qualifier will use the information that you provide to assess your readiness to proceed, reviewing your financial details including debts and any other financial commitments to estimate your borrowing potential and identify suitable mortgage products.

At James Leighton, we spend time to understand the unique priorities of every client, so that we can tailor our services to meet their goals. For example, some clients may have complex income or credit issues. By understanding these circumstances at an early stage, we can set expectations and provide recommendations for the most suitable products.

Fact find and financial assessment

Following on from the initial discussion, a detailed financial review will be carried out by our team. Your income and expenditure details will be assessed to calculate mortgage affordability and borrowing capacity.

Reviewing your finances

This will involve an income assessment, looking at your basic salary (and the joint applicant if there is one), including any additional sources of income such as bonuses, commission or overtime.

Your monthly expenditure will also be reviewed, such as any loans or other type of finance, existing rent payments, bills and any childcare costs. 

The amount of your deposit will affect which deals will be available based on the Loan to Value (LTV) percentage, so this will be an important part of the assessment.

Many lenders base affordability on a multiplier of the applicant’s income but there are different affordability models that may provide greater borrowing flexibility where appropriate. Our team broker will use all of this information to establish a realistic borrowing range.

Determining eligibility

The information gathered will allow our team to identify the most suitable products and lenders based on affordability and eligibility criteria. As well as looking at income, lenders review job stability and length of employment.

James Leighton provides a fee-free model, working with a large range of lenders which enables us to identify suitable lenders with eligibility criteria that suits the needs of every unique client and their circumstances.

Image showing a man writing in a notebook

Gathering documentation

At this stage, you will be passed to our Case Management team who will do the following:

  • Request documents such as payslips and bank statements to evidence salary and check expenditure
  • Verify identity and financial details to ensure that the applicant is who they say they are and to prevent lending to anyone who could be a fraud risk
  • Check affordability, credit history and risk to calculate how much the applicant can afford to repay on a mortgage and whether they have any history of missed payments
  • Prepare for lender requirements such as gathering any additional documents required by a specific lender

Mortgage Decision in Principle (DIP)

A Decision in Principle provides an estimated amount that the lender is likely to approve for a mortgage loan. It is not a formal mortgage offer, but it helps buyers to work out the price range of properties that they will realistically be able to obtain a mortgage for.

The DIP is based on initial financial checks, and the amount can change if further information is gathered that impacts affordability or credit payment reliability. We can help you to get a DIP through a suitable lender, which can strengthen your property offer, as it provides confidence to estate agents, sellers, and builders where applicable, that you will be able to go ahead with the purchase.

Full mortgage application

The next step is to start your property search using the DIP to guide your budget. Once you have found a property you want to buy, you submit an offer through the estate agent, or the builder if you are purchasing a new build property.

If the offer is accepted, you are now in the position to complete a full mortgage application and to appoint a conveyancer to manage the legal property purchase process. This is when the purchase process formally begins, and your conveyancer will arrange for searches to be completed and perform legal checks.

Your broker will recommend the most suitable lender and product, and will review the documents already provided to our Case Management team. 

You may be required to send additional documents, for example, SA302 tax calculations if you are self-employed. Your broker will complete and submit the mortgage application and liaise with the lender on your behalf.

Image showing a couple facing away from the camera with arms round each other

Valuation and underwriting

Once your mortgage application has been submitted, the lender will arrange a property valuation to check that your offer for the property is not higher than what the property is worth.

The underwriter will then review the application and documents and may request additional information in some cases.

Mortgage offer issued

Following the review, the lender will issue a formal mortgage offer which includes:

  • Loan amount
  • Interest rate and mortgage term
  • Conditions of the mortgage

The offer is usually sent by email to both the buyer and their conveyancer, but may be sent by post.

Legal work, exchange and completion

The conveyancer will complete the legal work involved in transferring ownership of the property and draft the contracts that will be exchanged.

The date for the exchange of contracts will be agreed and once exchanged, the transaction is legally binding. Your conveyancer will agree a completion date, when the mortgage funds will be released by the lender and transferred to the seller’s conveyancer.

Once the funds have been transferred, you receive the keys for your new home and can move into the property.

FAQs

How long does the mortgage process take?

The mortgage process length, from qualification to completion, can vary but typically takes around 3 months. For a new build property, this depends on when the new property is ready and so could be anything up to 6 months.

What documents will I need for a mortgage?

You will need proof of ID, proof of address (utility bills or council tax statements), bank statements, payslips and proof of deposit.

When do I receive my mortgage offer?

You will receive your mortgage offer once the lender has completed affordability checks and credit checks, verified documents and received the property valuation. This typically takes around 1 to 3 weeks from submitting the application.

What happens on completion day?

On completion day, the conveyancer arranges the funds to be transferred from the lender to the seller’s conveyancer. Once funds have been transferred, keys are handed over and the buyer moves into the property.

Get in touch

Please click here to view our Privacy Notice before submitting your enquiry.