If you’re not familiar with the mortgage application process – or maybe you are, but expect things have changed thanks to the coronavirus pandemic – let’s discuss how much time it takes to complete one.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Length of mortgage application process
Being cooped up indoors over the last year has pushed many people to look into upgrading their living spaces, opting for a literal change in scenery to allow for access to outdoor space. With seemingly no end in sight to the pandemic, homebuyers are eager to get into their new homes. And if you’re a property investor, time is of course always of the essence.
Typically, the mortgage process from application to offer is expected to take around a month (3-6weeks) assuming no problems crop up.
However, even when we aren’t in the midst of a worldwide pandemic, it’s difficult to gauge exactly how long the process can take because it’s dependent on a number of factors. Some lenders have more requirements or take longer to complete than others, and sometimes special cases might need additional time to move through the process.
However, you can help speed up the process
If you’re prepared ahead of time, it will certainly speed things along, so take care to gather all necessary paperwork (ID e.g. passport, 3-6 months bank statements, and proof of income) ahead of time and ensure you’ve done the work on your finances in preparation for the financial review lenders will undertake, including the stringent affordability test. The property will need to be inspected by an independent surveyor who will produce a standard valuation for your lender.
The COVID-19 effect – unfortunately the process is currently taking longer
Our unique situation has spurred unique housing market activity, partly in thanks to government help (SDLT holiday) which contributed to the surge. The mortgage market has a bit of a ‘perfect storm’ on its hands; a number of things in relation to coronavirus have led the applications process to take longer than usual.
Due to the pandemic, there have been staff shortages as many have fallen ill with the virus and an increasing number of mortgage companies have allowed their staff to work from home as a result.
This, and a strain on resources as banks and building societies dealt with the influx of enquiries about the government-mandated mortgage holidays, have contributed to extending the length of time it takes to get a mortgage. Conveyancing is also taking much longer for surveys to be carried out which can impact the turnaround for a mortgage application approval.
Mortgage advisers can help from start to finish
Whether you’re looking for your first home or adding to your property portfolio, if you’re ready to get started on your real estate hunt, check out our mortgage finder tool before you do anything else. It’s best to know what’s out there before meeting with a mortgage adviser, but once you begin working with one, they’ll be able to provide access to the best lenders and deals for you.
Dental & Medical Financial Services also have a wealth of tools available to help you and happily provide our clients with a mortgage review to find out what deals are available and right for you. Over the years, we have built relationships with lenders so we’ll know the best ones to work with to get you into your new property fast.
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