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The mortgage application process is relatively straightforward in principle but a little more complicated in practice. The basic stages are:-

• Gather income and employment details together with details of outgoings
• Approach a mortgage provider for a decision in principle
• If you receive a favourable principle decision, apply for a mortgage
• Purchase your property

It is now commonplace for those looking to acquire a property to appoint a financial advisor with experience and expertise in the mortgage sector.  As mortgage brokers, we have access to an extensive panel of lenders from across market to find the right deal for your situation. In addition, experienced mortgage brokers will have an array of contacts in the market, allowing them to potentially negotiate favourable terms and conditions not readily available to the general public.

Traditionally, it takes between two and six weeks to arrange a mortgage, but with remortgages, it is usually completed a little quicker. If the mortgage provider has additional questions or requires proof of income, this timescale can be extended. Rather than visiting potential future homes and then arranging mortgages, many people start the mortgage application process before looking for a property. This ensures potential buyers know the reach of their finances. As much of the groundwork has already been done, the mortgage confirmation process can be shortened.

As soon as you decide to look for a property, this is the time that you need to research the latest mortgage deals and your eligibility. This allows you to go through all options before committing to a house purchase.

There is no minimum deposit requirement set in stone. However, to access some of the more competitive mortgage rates, the average deposit is around 20%. A more significant deposit creates broader headroom between the outstanding mortgage debt and property value. This reduces the lenders’ risk, opening the door to more competitive mortgage rates.

Historically, the UK government has offered various degrees of financial assistance to first-time buyers. This has included numerous help-to-buy schemes where the minimum deposit can be as low as 5%. These schemes allow homeowners to acquire 75%+ of a property through mortgage finance, 5% via a deposit, with government funding of up to 20%. After the initial purchase, homeowners can buy equity from the government, increasing their share of the property. The cost is based on the market value at the time.