All You Need To Know About Mortgages And The Application Process

Purchasing a home is a significant milestone, which for most involves securing a mortgage. A mortgage is a loan taken out specifically to buy a property. The money is borrowed from a lender, whom you then have to pay back over a fixed period of time. Navigating this process can be a little intimidating at times, especially for first-time buyers and in the current economic climate of rising rates, but with the right knowledge and preparation, you can make this process smoother and more profitable in the long run.

When applying for a mortgage, you will come across a few key terms such as down payment, interest rates, loan term and amortisation. Familiarising yourself with these terms will help you make a more informed decision when choosing your mortgage type. You may choose to take out a fixed-rate mortgage or an adjustable-rate mortgage, but if you are unsure, we work closely with some of the country’s best advisors for the Mortgage Advice Bureau, who can support you in your entire mortgage journey.

Before beginning the actual application process for your chosen mortgage, it is crucial to assess your financial readiness. Look at your income, expenses, credit score and debt-to-income ratio. These are the types of things lenders will look for when determining your eligibility to take out a mortgage, so ensuring you have a strong financial profile is essential.

Once you’ve chosen your lender and received your prequalification or preapproval estimate from them, you can then complete your application. This involves providing personal, financial and property information, so be prepared to answer any questions relating to these areas.

Your application will then enter an underwriting process, which is the stage where the lender reviews your application and verifies the information you have provided. If successful, you can close the mortgage and be ready to move in to your perfect new home.