The most common reasons for mortgage application delays

Whether looking for a mortgage to finance your very first purchase or upgrade your existing home, negotiating the application process can be a minefield without the right knowledge and support. Our independent mortgage advisors are here for you as you take that step onto or up the property ladder. One of the questions we are asked all too often is “how long does it take to get a mortgage?”. Here the HomeOwners Alliance answers that very question:

“After having an offer accepted on a property and applying for a mortgage, it can typically take from two to four weeks to get a mortgage approved. But it can take longer, depending on your circumstances. The good news is, you can get an indication of how much you can borrow and even a ‘mortgage agreement in principle’ almost instantly.”

Current remortgaging timescales mean this process takes a little longer for others, with the time it takes to remortgage at least two months. It is however important to note that these timescales are an average. There are after all many factors that could affect the timescale of your mortgage application, with a number of people experiencing delays that prolong the process further.

To help you enter the mortgage process with your eyes wide open, we’re here to discuss the common reasons for mortgage application delays and how to avoid them.

You need to get your finances in order

There are many things that can slow down or even scupper a house purchase, but when it comes to your mortgage application, your current finances are the main reason why the process takes time. In fact, time (and lots of it) is what you need when gathering information for your lender to verify your income and outgoings.

Being prepared is however the key to overcoming this obstacle and ensuring you have everything to hand to keep your lender satisfied. Be sure to set aside three months of payslips if you’re employed or two years of self-assessment returns (or tax calculations) if you’re self-employed, plus bank statements. You’ll also need a breakdown of your outgoings so your prospective lender can gain a clear picture of your financial health.

You’ve just started a new job

Starting a new job is one thing we wouldn’t advise if you plan to apply for mortgage in the not so distant future, especially if you wish to go from employed to self-employed, so hold out if you can. A lender wants to see that you have a regular and reliable income stream, and your recently changed job status could raise questions and cause subsequent delays.

Your credit score isn’t as expected

Your credit rating will play a crucial role in the success of your mortgage application. To avoid related application delays, checking your credit score early – even as you begin to save that house deposit – is recommended. You can make several changes to your lifestyle and financial health to boost your credit score, but it does take time to improve a poor rating.

Making changes early will mean you’re in a stronger position to purchase a property. It’ll increase your chances of mortgage success without delays too.

You’re not on the electoral roll

As part of the mortgage application, you’ll need proof of your identity and current home address. It’s at this stage when most realise just how important it is to be on the electoral roll. As well as helping would-be lenders to confirm your identity, it’s one of the factors that can impact your credit rating, so needless to say, it’s pretty vital.

Thankfully, it’s now relatively easy to register and get those details on this all-important electoral roll. Simply, register online here.

At The Mortgage Bureau, we can support you throughout your mortgage application to keep the whole process moving along just as it should. Contact our local mortgage advisors today to discuss your next steps.