If you’re planning to apply for a mortgage for a new property, or even wish to remortgage your current property, this can be an exciting yet draining experience. 

A survey reported by The Intermediary revealed that 16% of mortgage applicants found themselves stressed during the application process.

What’s more, Mortgage Strategy reports that, in a survey of 1,000 people across the UK focusing primarily on the self-employed and those with complex income streams, 48% of respondents said they had been negatively affected by the mortgage application process.

The findings revealed that respondents felt as though getting a mortgage was more difficult than: 

  • Moving home 
  • Arranging a wedding 
  • Parenting 
  • Applying for a new job.

Whether you’re self-employed or not, the mortgage application process can be a source of considerable stress. For instance, you may be concerned about hidden costs or that lenders will deny your application.

Yet actually, it doesn’t need to be a stressful ordeal. By adopting a well-informed approach and adequately preparing, you could potentially navigate the entire process with relative ease. Continue reading to discover four ways you can alleviate some of the stress.

1. Fully understand the process before you apply

Applying for a mortgage may seem somewhat complex at first glance. Though, knowledge is power, and whether you’re applying for a deal for a new property or remortgaging your current home, it can pay to understand the process long before you apply.

By taking the time to educate yourself about the fundamentals of mortgages and how to obtain one, you could prepare yourself well ahead of time and alleviate any unnecessary stress.

For example, complicated jargon and terminology can make mortgages seem confusing. Even if you have been through the process before, it may still be wise to refresh your memory about any key concepts and complicated terminology. This includes jargon such as:

  • Loan-to-value (LTV)
  • Equity
  • Mortgage term
  • Your interest-rate options (fixed, tracker, variable).

This could help you make an informed decision about what type of mortgage would best suit your current needs. 

It’s also worth ensuring you understand the various stages of applying for a mortgage and know what to expect at every step. It usually goes as follows: 

  1. Find a mortgage deal that best suits you
  2. Get an agreement in principle (AIP) from your potential lender
  3. Gather any necessary documentation
  4. Make a formal application
  5. Receive your offer from the lender.

It may be wise to obtain an AIP before you apply for a mortgage, as this gives you and your potential lender an idea of how much you can afford to borrow. Doing so could even streamline the application process, as well as show potential lenders that you’re serious about going forward and that you’ve taken the necessary steps to have your mortgage approved.

If you’re applying for a mortgage for a new property, you’ll typically need to appoint a solicitor or a licensed conveyancer to oversee the legal aspects of the purchase. It’s also prudent to have a survey conducted on the property after you find a home and make an offer but before you exchange contracts to identify any red flags. 

Ultimately, by understanding the application process, you could feel more empowered to make informed decisions throughout. This could significantly reduce any stress and anxiety you have about applying, as you’ll have a clearer idea of what to expect at each phase. 

2. Check your credit record

When you understand the process of applying for a mortgage, a wise next step could be to obtain a copy of your credit record. This is a collection of information about your history of debt and borrowing habits – essentially a “report card” that helps lenders decide whether they deem you creditworthy.

It may be prudent to request a copy of your credit record from each of the three main credit bureaus, as the information can differ between them. This includes: 

  • Equifax
  • Experian
  • TransUnion

Doing this in advance could allow you to clear up any issues before you apply for your mortgage. For instance, you may spot a mistake ranging from something as minor as an incorrect name or address, to a more significant issue, such as a wrongfully listed debt. 

If you do spot a mistake, it’s important to dispute this with the credit agency, as even a tiny mistake can damage your credit score, and your potential lender could deny your application as a result.

3. Prepare and plan as early as possible

Comprehensive planning and preparation can also contribute to a stress-free mortgage application. By failing to plan each stage of the process, you may be unprepared when you eventually do apply for a mortgage, resulting in unnecessary stress.

It may also be prudent to gather any necessary documentation before applying for a new loan or remortgaging. For instance, documents you may need include:

  • Proof of identity, such as your passport or driving licence
  • Your last three months’ payslips and bank statements
  • Two years’ accounts and SA302 forms if you’re self-employed.

By preparing any necessary documentation long before you apply for a mortgage, you could save yourself time and potentially prevent any last-minute delays that could result in stress.

4. Seek help from a professional

Speaking with a professional is a wise way to secure some peace of mind and relieve some of the stress associated with the mortgage application process.

Mortgage brokers have in-depth knowledge and experience in navigating the application process. They can typically offer you invaluable insight, help you choose the most suitable mortgage product for your situation, and liaise with the various parties involved in the transaction to ensure your application moves as smoothly as possible. 

By tapping into our expertise, you could potentially feel more confident about the entire process, alleviating some of the stress along the way.

To find out how we could help you along every step of the application process, please email enquire@london-money.co.uk or call (0207) 808 4120.

Please note

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

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