How to apply for a mortgage
You could lose your home if you don’t keep up your mortgage repayments
What if my lender’s valuation is different to the price?
If your lender values your home less than your agreed sale price, your application may be revised.
When this happens, your lender can lower your mortgage amount to match the new value. This means you may need to speak to the seller to negotiate a price to match your new budget.
How long is a mortgage offer valid for?
Usually, a mortgage offer is valid for between three and six months.
Do I have to accept the mortgage deal offered?
When your lender accepts your application, you usually have a short window of time to consider the offer, known as a ‘reflection period’. During this time, you can choose not to continue with the mortgage.
How far back do mortgage credit checks go?
Generally, mortgage lenders will look back over the last six years of your credit history to help them make a decision.
Can I apply for a mortgage with credit card debts?
Yes. If you have outstanding debt, this commitment will be taken into account, but it is possible to still be approved for a mortgage. Before you apply, seek advice from a mortgage advisor on the best options for your circumstances.
What credit report do mortgage companies use?
There are three credit reference agencies in the UK:
- TransUnion (formerly Callcredit)
Mortgage companies will check your credit report with one, two or all three of these. Each one has different maximum scores and scales, even though they all use the same information.
What does mortgage offer issued mean?
A mortgage offer is issued when the lender has processed your application and is happy to lend you the agreed amount.
Sometimes called an ‘offer of advance’, it’s only issued when the lender has completed its credit checks, confirmed the value of the property and is ready to offer a mortgage. After a mortgage offer is proposed, your solicitor can exchange contracts and complete the purchase.
The mortgage offer issued will include:
- Personal details – Name, address, date of birth.
- Property information – Address, valuation, property type.
- Mortgage details – Interest rate, term, repayment amount, mortgage fees.
- Property rights clauses – Repossession and sale if unable to meet repayments.
- Mortgage terms and conditions.
What if I’m refused a mortgage?
There could be several reasons you may not be accepted for a mortgage.
These range from an error on your application to a low credit score. Before you reapply, seek advice from an advisor to find out why your application was refused.
Find out more about what happens when a mortgage application is declined.
The content on this page is for reference and does not constitute finance advice.
For impartial financial advice, we recommend government bodies like the MoneyHelper.
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
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