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Applying for a mortgage

This document is designed to help you become familiar with how a mortgage application works, and the key stages of the application process.

The information below relates to a full property purchase application. Some stages are not relevant for a remortgage.

Step by Step: How the application process works:

Decision in Principle (DIP)At the Decision in Principle stage (sometimes referred to as an Agreement in Principle), our Advisers or your broker will ask you some questions about your circumstances, such as your income and expenditure. They will use this information to make an initial decision on whether or not the mortgage is suitable and affordable for you. A Decision in Principle is not a mortgage offer, so you’ll still have to make a full application to see if you can get a mortgage.
Find a propertyBefore you submit your mortgage application to us, you will need to find a property that you want to buy. Once you have made an offer on a property, you can then begin your application.
ApplicationAt this stage you can submit your mortgage application. You will need to provide us with information about you, including your employment, and any credit cards / loans you might have. You will also likely be asked to provide additional documents, such as ID, payslips, and bank statements. Your application will be reviewed by one of our Underwriters, who will assess and make the final decision on whether or not your application is suitable and affordable. Your application may be declined if the mortgage is not affordable, or if there are other concerns with the property.
ValuationAt this point, the Underwriters will instruct a Valuation on the property. There are a few different types of Valuation, some more detailed than others. You will need to decide which type of Valuation you think is right for you. In some circumstances, it may be acceptable to perform an online valuation, or a professional surveyor may visit the property. This stage is where your Valuation Fee will be payable, if relevant. Your Valuation Fee is not refundable if your mortgage does not proceed. Scotland: In Scotland, the seller is required to get a Home Report before the property is put up for sale. Here is a table of our Valuation Fees

OfferIf your application has been successful, you will receive your Mortgage Offer. Your Mortgage Offer will be valid for 6 months.
Exchange of contracts / Exchange of missives (Scotland)At this stage, your solicitor/conveyancer should have finished all their necessary checks. They will exchange contracts with the seller’s solicitor/conveyancer and this means that the agreement is now legally binding. Scotland: In Scotland, this is referred to as ‘Exchange of Missives’. Your solicitor will exchange a series of letters (called missives) with the seller’s solicitors, to agree the terms of the contract.
Completion / Date of entry (Scotland)Completion is the final step of your mortgage application. On this date your mortgage money will be released and transferred to the seller. When you hear that your mortgage has ‘completed’, this really means that your mortgage is active: the funds have been released and you will start your mortgage payments. You should now receive the keys for your new property. Scotland: In Scotland, this stage is known as the ‘Date of Entry’. Depending on your mortgage product, you may have some fees that are payable at completion, such as the Product Fee.