The Mortgage Process Explained by Smiths Financial Solutions

The Mortgage Process Explained by Smiths Financial Solutions

Getting a mortgage can be a daunting experience to say the least. This is especially the case if you are buying your first property. If you want to ensure that everything goes to plan, then this guide should clarify the process so you can be more confident going forward.


When should I Apply for the Mortgage?

Buying a house can be complicated because you can’t buy your new home without getting a mortgage (or unless you have the cash to do so). That being said, you can’t take out a mortgage until you are ready to buy the house. The advice here would be for you to backtrack a bit, so you can make sure that when you look at properties, you are serious about your search.


The Initial Enquiry & Free Consultation

When you come through us, you’ll first make your initial enquiry. This is when you tell us about your situation and what you are looking for. We will then give you a free consultation, so that we can really delve into the details and find out what your ideal home looks like. The call will include going through your budget planner, credit commitments, income and any other outgoing's.


Affordability Check

The next thing to be done would be for you to go through an affordability check. This will help us to find out how much you can realistically afford so that you don’t end up trying to buy a property that is just not feasible for your income. We use a system that calculates the affordability results with all lenders, on the information provided in our consultation.


Decision in Principle

When we have talked about your income and how much you can afford to spend in terms of monthly repayments, it’s then time to get a decision in principle. This will help you to find out how much the bank are willing to lend you, giving the concrete numbers we talked about in the affordability check.


Mortgage Application

When you have found your ideal property, and you have your decision in principle, you can then proceed with your mortgage application.


Property Valued & Underwriting

At this point, you will have your property valued and you will also have your case looked at by the underwriter. It’s a very simple process, depending on the lender and service levels, it can take a week but always allow for a couple of weeks for this to be completed.


Mortgage Offer

Your mortgage offer will essentially tell you how much the bank are willing to lend you based on the property you have chosen. If a lot of work needs doing to the property, it may be that the bank offer to lend you less. This is especially the case if there are major structural issues. Usually though, you’ll be offered the amount you requested (subject to the affordability).


Contract Exchange

When the contracts are exchanged, the sale of the property is legally binding. You won’t be able to back out without experiencing huge fees. The same concept applies to the other party.

Some exchange of contracts can take place on the same day as completion. Your deposit is paid to the solicitor before contracts are exchanged.



Completion is where the final details are sorted, and where everything is transferred. The money will be exchanged, and this signifies the end of the process. Now it is just a case of you waiting to exchange the keys, so that you can move into your new property.


If you have any questions regarding the Mortgage Process, please contact us on 0800 001 6515 or you can email