Arranging a Mortgage

The mortgage process should be started as soon as possible:

  • before agreeing a deal the seller and estate agent will want reassurance that the buyer knows what he can borrow and has made provisional arrangements
  • the legal contract will not be signed until mortgage arrangements have been completed and up to this point a buyer can be gazumped
  • it will take longer than you think

How to do it

  • There are two ways to progress
  • one is to approach the lenders directly and research what they have to offer
  • the other route is to select a broker who will take responsibility for researching the market for you.


There are hundreds of mortgage products to choose from and the market can get very confusing. Some of the things to think about are:

  • is the interest rate variable or fixed?
  • if variable will I be able to afford the payments if interest rates go up?
  • can I take payment holidays if my financial circumstances change?
  • is it flexible so I can pay off more early if I am able and save on interest charges?
  • is a cashback available to help me cover valuation or legal expenses, my deposit, carpets or home improvements?

What Does a mortgage Application Involve?

A potential lender is being asked to assume the financial risk that you will not service or repay the loan. The decision making process concerning this is called underwriting. The process is detailed and lenders require a great deal of information before making their decisions:

  • Evidence of income and current commitments such as wage slips, a P60 and bank statements
  • credit references from agencies, previous lenders and landlords
  • income verification from employers
  • reports from surveyors that the property's condition and value are suitable for mortgage purposes.

Lenders will reduce their offer amounts after credit scoring processes taking into account your existing commitments.

Consumer Protection

The mortgage code provides protection for you as a mortgage borrower. It sets out minimum standards that mortgage lenders and intermediaries have to meet. Visit the website of the Council of mortgage Lenders to find out more at


The above text is not intended to suggest or recommend any form or type of mortgage or financial product. Professional advice should always be taken from a mortgage broker or financial adviser. Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

Legal content supplied by Wilson Nesbitt Solicitors.