How To Apply For A New Mortgage

14th June 2021

Here’s a simple guide to applying for a new mortgage

Appling for a new mortgage can feel like an overwhelming and daunting prospect, but it doesn’t have to be! To help, we’ve created this guide to explain the process and assist you with everything you need to know about a new mortgage and what is involved.

HOW DO I PREPARE FOR A MORTGAGE APPLICATION?

Before you apply for your mortgage, you should check your credit report. Lenders will check your credit score to determine if you have a good repayment history in order to make a decision on if they can offer you a mortgage.

Your credit report will show past and current loans, mortgages, credit cards, and overdrafts from the past six years. You can find yours by using a free trial from various companies, the best ones to use are Equifax, Experian, or CheckmyFile.com which shows the 3 most common sources that lenders will use.

HOW DO LENDERS DECIDE IF THEY WILL GIVE ME A MORTGAGE?

Lenders will check your credit score; alongside all the information you provide during the application process. This will include:

  • Your household income
  • Any regular outgoings
  • Any debts you currently have such as loans and credit cards
  • They will also do a ‘stress test’ to ensure that you will still be able to afford mortgage repayments if the interest rates were to increase.

Use our mortgage borrowing calculator to receive an estimate of how much you could borrow.

WHAT DO I NEED TO APPLY FOR A MORTGAGE?

You will need to provide several documents and evidence for ID and proof that you can afford a mortgage. These may include:

  • Passport or Driving Licence
  • Last three months’ payslips
  • Utility bills
  • Proof of any benefits you receive
  • Last three to six months of bank statements
  • P60 from your employer
  • If self-employed, you will need to provide two to three years’ accounts, tax return form SA302 and banks statements to support this information

When providing details and information, you need to ensure it is completely accurate.

WHAT IF I’M A FIRST-TIME BUYER?

If this is your first mortgage, explore our first-time buyer mortgage advice to find out what’s different about a first-time buyer mortgage and read our top tips. You may also want to look at our Help to Buy expert guide if you’re looking to purchase a new-build property.

I’M RE-MORTGAGING, IS THE PROCESS DIFFERENT?

Whether you’re looking to re-mortgage to save money, move house or complete renovation works, take a look at our expert remortgaging guide for information on how it works and the advantages and disadvantages that can come with changing your mortgage.

HOW CAN A MORTGAGE ADVISER HELP ME?

A mortgage adviser can help you to understand the terms and conditions of a mortgage and guide you through the whole process from start to finish. There are thousands of mortgages available, and with the help of an adviser, you can be sure you’re finding the right one for you.

WHAT THE NEXT STEP?

Take a look at our mortgage calculators and get in touch to speak to your local mortgage broker on 08454 500200. Our friendly team of experts is on hand and happy to help.

With mortgage brokers in Winchester, Southampton, Farnham, Bishops Waltham, Alton, Chandlers Ford, Alresford, Romsey and Park Gate, you are never too far from mortgage advice.

Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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I took out my first mortgage through Charters Financial Services and could not recommend them highly enough. Their service is simply incredible. The process began with many helpful talks with Kevin, who talked me through the process, demystified a lot of the things I'd read online and decide which lender was best suited to my individual requirements. As a first time buyer this was invaluable information. Since our mortgage offer, we have had the brilliant support of Marie, who has answered any further questions we may have. Their support did not stop after our first purchase fell through as they worked to get us a new mortgage offer on a second property - all at no extra cost. If you're looking to buy your first home, go to Charters Financial Services. I have already recommended them to a friend who is looking to buy their first property, and will be using their services again in future.

Jack B

September 2020

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