Once you’ve found a property you’d like to buy, you need to make a full mortgage application with a lender. You can do this either by working with a broker or applying for a mortgage with a lender directly. ClearScore can’t help you with this step directly, but we can refer you to a broker based on the information you’ve given us.
The lender will make a final decision on your mortgage application.
The information in this article isn't intended to be advice from ClearScore Technology Limited, its group companies or its affiliates. It's not a substitute for getting advice from a lawyer, financial advisor, or any other professional.
Documents you may need
The lender or broker may ask for:
- Proof of who you are
- Your current and past addresses
- Details about your job
- Recent payslips and bank statements
- Your P60 (a form from your employer that shows your pay and tax for the year)
- Accounts or tax documents, if you’re self-employed
- Details of your spending, loans and credit cards
- Proof of where your deposit came from, including any money given to you as a gift
- Details of the property
- Details of your solicitor or conveyancer
Make sure the details you give match your documents. If your income, job or spending changes before you buy, tell your lender or broker.
Who else may check your details
Your estate agent, lender and solicitor may all check who you are and where your money came from. They check for different reasons, so you may need to share the same documents more than once.
Your solicitor or conveyancer
A solicitor or conveyancer is a legal expert. They handle the legal side of buying your home. This includes checking the property, managing the contract and moving the money.
The lender will usually need their details for your application. Some lenders only work with certain solicitors or conveyancers.
How the lender decides
The lender looks at you and the property. They check:
- Affordability – your income, spending and debts, and whether you can keep up with payments if interest rates go up
- Credit history – how you’ve paid back credit in the past
- Your deposit – how much you have and where it came from
- The property – its value, condition and type
If you apply with someone else, the lender checks both of you.
When you apply, the lender does a hard credit search. This is a check that other lenders can see on your credit report.
Each lender has its own rules. One lender may offer you a different amount from another. Your credit score alone doesn’t decide if you’re accepted.
Valuation and survey
The lender will check what the property is worth. This is called a valuation. It’s for the lender – it doesn’t check the property for problems.
If the property is worth less than you agreed to pay, the lender may lend you less, ask for a bigger deposit or decide not to lend.
A survey is different. You can choose to pay for one to check the property’s condition, like damp or roof problems.
This is different in Scotland, where most properties come with a Home Report. It includes a survey and a valuation and most lenders rely on it in their mortgage processes.
Getting a mortgage offer
If the lender is happy, they’ll send you a mortgage offer. This is the lender’s formal promise to lend to you, as long as you meet their conditions.
Read your offer carefully. Check:
- How much you’re borrowing
- The interest rate
- Your monthly payment
- How long you’ll pay it back for
- Any fees
- Any charges for paying it off early
- The conditions of the offer
- When the offer ends
If anything isn’t clear, seek further advice from a solicitor, financial advisor, or any other professional.
A lender can still take back an offer. This can happen if your situation changes, the details you gave weren’t right or the mortgage offer ends before you buy the property.
If your application is declined
A no from one lender doesn’t mean every lender will say no. Lenders have different rules.
You or your broker can ask the lender why. They may not give full details, but they can usually say if it was about:
- Affordability
- Your credit report
- Your documents
- The property
A declined application isn’t shown on your credit report. But the hard credit search is. If you make lots of applications close together, lenders will see lots of searches.
You can check your ClearScore credit report for anything that looks wrong. See our guide to fixing incorrect or missing information on your credit report.
If you think the lender made a mistake or treated you unfairly, you can complain to them. If you’re not happy with their final answer, the Financial Ombudsman Service may be able to help.
Buying your home
After your mortgage offer, there are 2 last stages.
Exchange of contracts is when the sale becomes legally binding. Before this, you or the seller can usually pull out more easily. After this, pulling out can cost you a lot of money.
Completion is the day the home becomes yours. Your solicitor or conveyancer moves the money, and you can usually collect your keys.
Buying in Scotland
In Scotland the legal steps are different:
- You’ll usually choose a solicitor before you make an offer.
- Most homes for sale come with a Home Report, which includes a survey and a valuation.
- Your solicitor makes your offer in writing.
- The sale becomes legally binding when the solicitors agree the written terms. This is called concluding missives.
Track your progress in the ClearScore app
Your home-buying timeline shows each major step in a typical home-buying process, including applying for your mortgage and completing your purchase. You can tick off each step as you go. This is your own checklist – we don’t check that you’ve done each step. And remember, every home purchase is slightly different, so you should not expect the checklist to be a complete list of every step that could be relevant to your specific situation.
More help
MoneyHelper is a free service backed by the government. It has more information on:
- How to apply for a mortgage
- The money timeline for buying in England, Wales and Northern Ireland
- The money timeline for buying in Scotland
- Buying a home in Northern Ireland, from nidirect
If you need help with the ClearScore app, contact us using the chat messenger at the bottom right of this page.