The mortgage process explained

Martin Green
Sep 25
5 min read

If you’re just starting out with the mortgage process, it can be overwhelming at first, especially if you’re going through it alone.

Getting a mortgage can take anywhere from 6 months onwards, depending on individual circumstances and borrowing factors. With multiple stages involved, you may be feeling unsure of what’s expected of you or what to prepare; that’s where we come in.

At GMS Ltd, we’ve gone through the whole mortgage process more times than we can count. Today, we’ll walk through it with you, so you feel confident going into your first consultation with a mortgage broker.

Are you looking for reliable mortgage advisors who will be with you every step of the way? Our team is here for you 24/7, offering tailored, unbiased advice to help you secure the home of your dreams in no time.

First things first—can you borrow what you need?

Before going into a mortgage, you will always be advised to consider what you can afford to borrow and if you’re capable of managing a certain amount of repayment every month.

Lenders consider three main factors when evaluating a loan application: your income, regular expenses, and the property's value. Many lenders in the UK also adhere to loan-to-income (LTI) caps and conduct checks as mandated by FCA rules on responsible lending.

When considering how much you can borrow, factors like salary, overtime and bonuses, self-employment, and any benefits you receive come into play.

Commitments, such as credit cards, loans, car finance, children, and buying necessities, will also need to be considered to understand your borrowing limits.

So, before continuing with a mortgage application, check these four things:

Your credit score
How much you spend on commitments every month
Your overall budget
Savings for deposits and fees

Your mortgage options

With various mortgage options available, such as fixed, variable, tracker, interest-only, etc., it’s best to have an idea of what’s best for you before going into a mortgage.

An experienced mortgage broker, such as our mortgage advisors at GMS Ltd, will walk you through each one and help you decide which option is right for you. However, it really comes down to two main choices: how you repay the loan and how your interest rate operates.

1. Repayment vs interest only

With repayment (capital and interest), your monthly payments cover interest and also chip away at the balance, so you’re essentially killing two birds with one stone. This is a popular option for first-time buyers since you clear the mortgage at the end if you pay on time for the full term.

Whereas with interest-only mortgages, you only pay off the interest on the loan for a set period of time. This means you’ll need a separate plan to repay the capital costs, such as sale, savings, and investments, which is why it’s more common for buy-to-let investors.

2. Fixed vs. Variable rates

When you opt for a fixed rate, your rate remains the same for a set period (often 2 or 5 years, sometimes longer), which helps with budgeting for your home or purchasing necessities like furniture. It offers both peace of mind and stability for first-time buyers.

With a variable rate, your payments can fluctuate, including tracker deals that follow the Bank of England base rate (typically the base rate plus a set margin), discount deals (a discount off the lender’s Standard Variable Rate, or SVR), and the SVR itself (set by each lender).

You can read more about the different types of mortgage loans on our blog.

Getting your mortgage in principle

A mortgage in principle, also known as a decision in principle (DIP) or agreement in principle (AIP), is when you receive an overall borrow amount that a lender is willing to lend you for the mortgage.

Having this in place shows estate agents that you’re serious about buying a property and you have the means to do so. It also means you can factor out properties that are outside your budget range and start arranging viewings.

Lenders will usually ask for:

Your income details (salary, bonuses, self-employment profits).
Outgoings such as loans, credit cards, or childcare costs.
Your current address.
Your deposit amount and where it’s coming from.

Our mortgage brokers will help you get your mortgage in principle in place as quick as possible and run a soft credit check so we know what we’re working with.

Submit and accept the mortgage offer

Once you’ve got your AIP in place and your mortgage broker has helped you prepare all of your documents, the house search begins.

It may take you a few viewings and trials and errors to find your dream home, but once you find the one, it’s important to finish the full mortgage application and put in an offer as soon as possible.

Your mortgage advisor will submit your documents (ID, payslips/P60, bank statements, and deposit evidence). The lender will then conduct affordability checks and order an evaluation, after which an underwriter will sign off on the file.

The valuation and underwriting will confirm that the property is suitable for the loan; however, expect some back-and-forth, as this process can take a few weeks. When the offer arrives in writing, take the time to review it with your advisor to check everything is correct.

Conveyancing and surveys

As we’ve just mentioned, before you settle into your home, a thorough conveyancing process is necessary to ensure everything is in order and it’s safe for you to move in.

This happens before the offer is accepted, so you know that you’re not going into a legal contract that doesn’t meet all of your needs. Your conveyancer will review any documents and contract drafts to check if anything looks unusual and assess the property.

Offers are typically valid for 3 to 6 months. Once you’ve accepted, your advisor will help you organise property searches, enquiries about the home, and any contract work that’s needed.

Exchange and getting your keys

You exchange only once searches, enquiries, and your mortgage offer are in place, and you’re happy with the survey.

Both you and the seller will sign a contract to settle the offer, and you’ll usually hand over your deposit at this stage (often around 10% of the property price). At this stage, you’ll be responsible for securing builders' insurance, final checks, and any moving prep.

The completion day will be the day you finally receive the keys to your new home!

Speak to an expert mortgage advisor

We understand how much information this is to take in, which is why we offer unbiased and tailored mortgage advice.

You will be assigned a single broker to assist you throughout the entire mortgage application process, providing 24/7 support. Each stage will be broken down into easily digestible sections, and we’ll make sure you end up with a mortgage that works for you.

Call us on:
0151 230 0909