When applying for a mortgage, there are a few crucial factors that can make the difference between whether a bank will lend to you or not.
Whether you’re a first-time buyer or already on the property ladder, understanding the mortgage application process, from getting your finances in order to receive your formal mortgage offer, is essential.
Need a refresher on the basics? Here’s how a mortgage works.
Know your budget in 2 minutes
Discover your maximum borrowing power
Establish your monthly repayments
See homes you know you can afford
With no fees and no credit checks on your finances.
Overview: steps to getting a mortgage
1. Get your finances ready
Before you can get a mortgage, lenders need to see that your finances are in good shape. Think of it like showing them you're ready to take on the responsibility, you manage your money well and you can afford the monthly payments without stretching yourself too thin.
Are you ready to apply for a mortgage?
Ask yourself:
Do I have a steady income and manageable debts?
Can I prove where my deposit is coming from?
Is my credit score healthy?
Find out how much you could borrow for a mortgage
Get a quick estimate using our online calculator. It’ll give you a rough idea based on your income, deposit size and monthly outgoings - a handy starting point before you dive into the details.
Get advice from a mortgage broker
Speaking to a mortgage broker is optional, but it can give you a more tailored idea of what you could borrow. They’ll assess your financial situation and explain what different lenders might offer. Some brokers charge a fee if you proceed with a mortgage through them, but the advice can be invaluable, especially for first-time buyers.
Sort out any existing debt
Paying off credit cards or loans can improve your affordability and make you more attractive to lenders.
Check your credit score
A good credit score is key to getting a mortgage, as it shows lenders you're a reliable borrower.
Check your credit report early through agencies like Experian, Equifax or TransUnion to spot any issues. Look out for errors, missing information, or entries you don’t recognise. You can file a dispute with each one that lists incorrect information, either online, by mail, or by phone and providing clear explanations and any supporting documents.
If your score’s low, you’ll have time to improve it. Boost your credit rating by registering to vote, paying bills on time, repaying your credit card in full each month, and closing unused credit accounts.
Mortgage eligibility explained
Lenders will assess:
Income and employment stability
Spending habits and debt-to-income ratio
Deposit size
Credit history
Stamp duty calculator
How much stamp duty will you need to pay? Let our calculator do the maths. Here's how stamp duty works.
However, from April 1, 2025, the stamp duty threshold was lowered to £300,000 and first-time buyers will need to pay the tax on properties over that threshold. If the property is worth more than £500,000, the tax will kick in at £125,000, as it does for home movers.
Stamp duty threshold for first-time buyers after April 1, 2025
| Property Price | Stamp duty percentage to pay |
|---|---|
| £0 - £300,000 | 0% |
| £300,000 - £500,000 | 5% |
| £500,000+ | Normal stamp duty rates apply |
Stamp duty thresholds for home movers after April 1, 2025
| Property price | Stamp duty percentage to pay |
|---|---|
| £0-£125,000 | 0% |
| £125,000 - £250,000 | 2% |
| £250,000 - £925,000 | 5% |
| £925,000 - £1.5m | 10% |
| £1.5m+ | 12% |
2. Compare mortgage rates
There are two ways of finding the best mortgage rate for you:
Approach individual lenders for their best rates.
Speak to a whole of market broker who can look at all of the deals currently available and find the best rate available for you.
Save money with Mojo Mortgages
Allow award-winning Mojo to show you the best rates available to you. A whole-of-market broker, Mojo work with over 70 lenders. And they won't charge you a penny for their services.
Do your own mortgage research
Start by checking out interest rates, how long the mortgage runs for, and any extra fees that come with it. Comparison sites are a great way to get a feel for what’s out there and see which deals might suit you best.
Contact a broker to get all your options
Mortgage brokers have access to deals you might not find on your own, and they’ll help you find the right lender that fits your situation, making the whole process a lot less stressful.
Should I choose a fixed, tracker or variable rate mortgage?
Fixed: Stable monthly payments
Tracker: Moves with Bank of England base rate
Variable: Set by the lender and can change at any time
3. Decide the length of your mortgage term
Before higher mortgage rates, 25 years was a popular option. More recently, increasing numbers of first-time buyers are opting for 30-35 years.
A longer mortgage can keep the monthly payments lower, but you'll pay more in interest in the long term.
How much could my mortgage repayments be?
Get a quick idea of how much it's going to cost each month or how a rate change could affect your monthly payments.
4. Agree on a monthly payment you can afford
The traditional rule of thumb is that you shouldn't pay more than 28% of your gross monthly income (that means before it's taxed) on your mortgage, and it's a threshold most lenders adhere to.
5. Apply for a mortgage
Now that you’ve found the right deal, it’s time to officially apply for your mortgage.
Get a Mortgage Agreement in Principle (AIP)
An AIP shows how much a lender is likely to offer based on a soft credit check. Estate agents often ask for this before showing you properties. If you’re using a mortgage broker, they can arrange this for you. If not, you can apply directly with a lender online, over the phone, or in a branch. It’s usually quick and doesn’t commit you to anything.
Choose your lender or mortgage broker
If you haven’t already, decide whether to go direct or through a broker who can submit the application on your behalf.
Gather your mortgage application documents
To secure a mortgage offer, you'll need to go through the full mortgage application process. This will involve providing information to prove:
Proof of income (payslips or SA302s if self-employed)
Proof of deposit
Bank statements (last 3–6 months)
ID and proof of address
Details of any credit commitments
This part of the process can take between 2-6 weeks, as lenders verify all of your documents and run credit checks.
Submit the full mortgage application
Once your documents are ready, your broker or lender will submit the full application. At this point:
A hard credit check is run
A property valuation is arranged
Wait for the lender's decision
Lenders assess your affordability and the property’s value. This process (called underwriting) can take several days.
Tip: Avoid taking out new credit during this time as any new borrowing could affect your credit score or change your debt-to-income ratio, which might raise red flags for the lender and delay or even jeopardise your application.
If approved, you’ll receive a formal mortgage offer.
Review and accept your mortgage offer
Check the offer carefully. If everything looks good, you can accept it. The offer is usually valid for 3–6 months.
What happens next?
Once you’ve accepted your mortgage offer, your solicitor takes the lead. They’ll handle all the legal paperwork, carry out the final checks on the property, and guide you through the exchange of contracts.
When everything’s in place, you’ll agree on a completion date and that’s when the mortgage funds are transferred and the keys to your new home are officially yours.
Time to celebrate (and start packing)!
First-time buyer schemes available in 2025
Explore government support schemes to boost your deposit or lower your interest: