Getting a mortgage is the biggest financial commitment most people will ever make. The process can feel overwhelming, but breaking it into clear steps makes it manageable. This guide walks you through every stage, from checking you can afford it to getting the keys.
How Much Can You Borrow?
Lenders use an income multiplier to determine how much they will lend. The standard is 4 to 4.5 times your annual salary.
Borrowing Limits by Income
| Salary | 4x Income | 4.5x Income |
|---|---|---|
| £25,000 | £100,000 | £112,500 |
| £30,000 | £120,000 | £135,000 |
| £35,000 | £140,000 | £157,500 |
| £40,000 | £160,000 | £180,000 |
| £50,000 | £200,000 | £225,000 |
| £60,000 | £240,000 | £270,000 |
Worked example: You earn £35,000 and your partner earns £30,000. Combined income: £65,000. At 4.5x income, you can borrow up to £292,500. With a £30,000 deposit, you could buy a property worth up to £322,500.
Note: Some lenders will offer higher multiples (5-6x) for high earners or professionals (doctors, lawyers, accountants). Check with a mortgage broker.
Deposit Requirements
The deposit is the amount you pay upfront. The rest is borrowed as a mortgage.
Deposit Sizes and LTV Ratios
| Deposit | LTV | Mortgage Rate Impact |
|---|---|---|
| 5% | 95% | Highest rates (4.5-5.5%) |
| 10% | 90% | Good rates (4.0-5.0%) |
| 15% | 85% | Better rates (3.8-4.8%) |
| 25% | 75% | Best rates (3.5-4.5%) |
| 40%+ | 60% | Lowest rates (3.0-4.0%) |
Worked example: You buy a £200,000 property with a £20,000 deposit (10% LTV). Your mortgage rate is 4.2%. If you had saved £50,000 (25% LTV), your rate would be 3.7%. Over 25 years, the lower rate saves you approximately £18,000 in interest.
Step 1: Check Your Credit Score
Before applying, check your credit score. Lenders use it to decide whether to lend to you.
| Agency | Free Check | Score Range |
|---|---|---|
| Experian | Yes (experian.co.uk) | 0-999 |
| Equifax | Yes (clearscore.com) | 0-700 |
| TransUnion | Yes (creditkarma.co.uk) | 0-710 |
Quick wins to improve your score:
- Get on the electoral roll
- Pay all bills on time
- Reduce credit utilisation
- Close unused credit accounts
- Check for errors on your report
Step 2: Get an Agreement in Principle (AIP)
An AIP is a conditional offer from a lender stating how much they are likely to lend you. It is not a guarantee, but it shows sellers you are a serious buyer.
How to Get an AIP
| Step | Action |
|---|---|
| 1 | Check your credit score |
| 2 | Gather basic income information |
| 3 | Apply online (5-10 minutes) |
| 4 | Receive decision (usually instant) |
| 5 | AIP is valid for 60-90 days |
Worked example: You apply for an AIP with HSBC. You enter your salary (£40,000), deposit (£25,000), and basic details. Within 5 minutes, you receive an AIP for up to £205,000. You can now view properties and make offers with confidence.
Tip: An AIP does not affect your credit score in most cases (soft search). But some lenders do a hard search, which leaves a mark. Ask the lender which type they use.
Step 3: Affordability Check
Lenders conduct a thorough affordability check to ensure you can repay the mortgage. This goes beyond your income.
What Lenders Check
| Factor | What They Look For |
|---|---|
| Income | Salary, bonuses, self-employed income |
| Outgoings | Rent, bills, subscriptions |
| Debts | Credit cards, loans, car finance |
| Dependents | Children, other dependents |
| Credit history | Payment history, defaults, CCJs |
| Employment | Stability, contract type |
Worked example: You earn £40,000 but have £500/month in loan repayments, £200/month in credit card minimums, and £800/month rent. The lender calculates your net disposable income after all commitments. If it is too low, they may reduce the amount they lend.
Tip: Reduce your debts before applying. Pay off credit cards and loans to improve your affordability.
Step 4: Gather Your Documents
Lenders require specific documents. Having them ready speeds up the process.
Document Checklist
| Document | Required For |
|---|---|
| 3 months payslips | Employed applicants |
| 3 months bank statements | All applicants |
| P60 | Tax year summary |
| Tax returns (SA302) | Self-employed (2-3 years) |
| Proof of deposit | Source of deposit |
| Passport/Driving licence | Identity verification |
| Proof of address | Utility bill, bank statement |
| Employment contract | If new job |
Self-Employed Additional Documents
| Document | Detail |
|---|---|
| SA302 tax calculations | Last 2-3 years |
| Tax year overviews | Last 2-3 years |
| Accountant’s reference | Confirming income |
| Business accounts | Last 2-3 years (limited company) |
| Company bank statements | Last 3-6 months |
Worked example: You are self-employed as a freelance designer. You need your SA302s for the last 2 years, your tax year overviews, and 6 months of personal bank statements showing regular income. Some lenders may also ask for an accountant’s reference.
Step 5: Choose Your Mortgage Type
| Type | Rate | Best For |
|---|---|---|
| Fixed (2-year) | 4.0-4.5% | Short-term certainty |
| Fixed (5-year) | 3.5-4.0% | Long-term certainty |
| Tracker | 3.5-5.5% | Betting on falling rates |
| Variable (SVR) | 5.0-7.0% | Flexibility |
See our UK Mortgage Rates Explained guide for a detailed comparison.
Step 6: Find a Property and Make an Offer
Once you have your AIP and documents ready, you can start viewing properties.
Making an Offer
| Step | Action |
|---|---|
| 1 | Find a property you want |
| 2 | Check sold prices in the area (Rightmove, Zoopla) |
| 3 | Make an offer (usually below asking price) |
| 4 | Provide your AIP to show you are serious |
| 5 | Negotiate if needed |
| 6 | Offer accepted — inform your mortgage broker/lender |
Tip: Research sold prices, not just asking prices. Properties often sell for 5-10% below asking.
Step 7: Apply for the Mortgage
With an accepted offer, you formally apply for the mortgage.
Application Process Timeline
| Stage | Duration |
|---|---|
| Application submitted | Day 1 |
| Lender reviews application | 1-5 days |
| Valuation arranged | 1-2 weeks |
| Valuation completed | 1-2 days |
| Underwriting | 1-2 weeks |
| Mortgage offer issued | 2-4 weeks |
| Legal work | 4-8 weeks |
| Completion | 8-12 weeks from offer acceptance |
The lender’s underwriting team reviews your income, credit history, outgoings, and the property valuation. They may ask for additional documents — respond quickly to avoid delays.
Step 8: Property Valuation and Survey
The lender arranges a valuation to ensure the property is worth what you are paying.
Types of Survey
| Survey Type | Cost | What It Covers |
|---|---|---|
| Valuation (lender) | £0-500 | Basic value check |
| HomeBuyer Report | £300-500 | Detailed condition report |
| Full Building Survey | £500-1,500 | Comprehensive structural check |
Worked example: You buy a Victorian terrace for £250,000. The lender’s valuation confirms it is worth £250,000. You also commission a HomeBuyer Report for £400, which finds damp in the basement. You negotiate £5,000 off the price to cover repairs.
Tip: Always get a survey, even if the lender does not require it. It can save you thousands by identifying problems before you buy.
Step 9: Receive the Mortgage Offer
The lender issues a formal mortgage offer. This confirms:
- The amount they will lend you
- The interest rate
- The term length
- Any conditions
Worked example: Your mortgage offer states:
- Loan amount: £180,000
- Rate: 3.7% fixed for 5 years
- Term: 25 years
- Monthly payment: £910
- Arrangement fee: £999 (added to the loan)
Step 10: Completion
Completion is when the mortgage funds are released, the property ownership transfers, and you get the keys.
Worked example: Your solicitor confirms completion. The lender transfers £180,000 to the seller’s solicitor. Once confirmed, you collect the keys and you are now the owner of your new home.
First-Time Buyer Schemes
| Scheme | How It Works |
|---|---|
| Lifetime ISA | Save up to £4,000/year, 25% government bonus |
| Shared Ownership | Buy 25-75%, pay rent on the rest |
| First Homes | 30-50% discount on market price |
| Own New - Rate Reducer | Developer subsidises mortgage rate |
Common Mistakes to Avoid
- Changing jobs during the process — lenders prefer stability
- Making large purchases before completion — affects affordability assessment
- Missing payments — even one missed payment can cause problems
- Not budgeting for extra costs — solicitor, survey, stamp duty, moving
- Rushing the process — a wrong decision can cost tens of thousands
The Bottom Line
Getting a mortgage in the UK involves several clear steps: check your credit, get an AIP, gather documents, choose the right mortgage type, and work through the application process. Start early, reduce your debts, and consider using a mortgage broker to access the best deals. The process takes 8-12 weeks from offer acceptance to completion.