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Original poster

How long for mortgage application

57 replies

AmateurHour · 16/07/2020 15:25

I’m a (terrified) first time buyer, and my mortgage application went in on Monday. I heard that in June 50% of applications were declined- a lot more than the usual 10% which has terrified me and made me think mine will also be declined.

Has anyone recently had a recent approval/decline? How long did it take to get a result? If you were declined, do you know why?

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PeachandBee · 17/07/2020 01:25

Ours came back in 9 days (8 really, as the application was made very very late on the Tuesday and came back on Thursday). We were told to expect up to 3 weeks!

lastqueenofscotland · 17/07/2020 08:47

I work in conveyancing, we aren’t seeing any more declined/downvalued than usual just finding that surveys are taking an AGE to take place.

littlecontis · 17/07/2020 16:10

We are also FTBs waiting for our offer to come through, been a week now...

Would the % of the deposit affect the speed of processing applications?

Fennelandlovage · 18/07/2020 08:58

Ours also only took a few days once full application went in but getting hold of anyone to actually make an application took best part of 2 weeks in the post lock down frenzy. Good luck.

patas · 18/07/2020 14:41

Should take about a week if everything is in place.
If you have a broker you shouldn't fail the application as they should check that you qualify.

Grobagsforever · 18/07/2020 14:56

Took 2 weeks for us, although only borrowing 25 percent of house value so very straightforward

Original poster
AmateurHour · 18/07/2020 20:47

Wow, a total mix of experiences! I’m borrowing approx 5x my salary with a 20% deposit. I have got a mortgage advisor but she hasn’t been totally confident so we’ll see!

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delilahbucket · 18/07/2020 20:53

Depends who it is with and whether the mortgage adviser has the authority to underwrite it themselves (some high street banks have these) or if it has to go through a separate underwriter. Even if it goes through, there's a huge backlog with surveys and solicitors.

HoHoHolyCow · 18/07/2020 20:57

We applied to port our mortgage and borrow a small additional amount. The process took ages! Probably 10 weeks. But we submitted it just as lockdown kicked off when lots of people were on furlough or working from home.

notheragain4 · 19/07/2020 10:17

I think it's a mixed bag atm. We've just ported and extended our mortgage and it took 2 weeks from application to offer (desk top valuation). Our buyer's (FTB) took about 3 I think from application to offer (desktop valuation). It took longer overall as he had to increase his deposit (from 10 to 15%)

BeijingBikini · 19/07/2020 17:56

We applied mid-March and got an offer mid-June (same day as the survey). I think the entire hold-up was in the valuation survey, as they weren't doing them in lockdown. We had a 15% deposit and were borrowing 3x our combined salary.

Owl1994 · 19/07/2020 20:28

We applied with Halifax directly and got our offer within 2 and a half weeks. It was getting the survey that took the majority of that time, as there was a backlog.

Original poster
AmateurHour · 19/07/2020 20:45

All this is helpful, thanks. Hopefully it’ll help distract me for longer so I’m not so paranoid about it all! When did you do yours Owl?

I’m waiting to hear it’s a ‘yes’ before I get a survey done- I’m assuming that’s fairly normal? I don’t want to pay loads for a survey if I don’t get to use it!

Me and the seller have been given target exchange and completion dates for the end of August and early September, does anyone know where they get those dates from?? My application may not even be confirmed by then!

So satisfying to see ‘sold STC’ on the online listing 😁

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notheragain4 · 19/07/2020 20:56

@AmateurHour the dates are plucked out of thin air at this stage, "something to aim for" is what they'll say. If you want things to move quicker you'll need to action survey and solicitor now but it's understandable that you'll want to know you have a mortgage first, I would just make sure the other side is aware of that. Our buyers did that despite the fact we'd asked for a speedy sale but found out he only actioned solicitors 8 weeks down the line (he got his mortgage offer after 7 weeks) we were livid and at real risk of losing our onward purchase but mostly as it was concealed (by our estate agent too but that's another story) but so long as everyone is aware of the situation there isn't a wrong or right way of doing it.

RenegadeMrs · 19/07/2020 21:05

Its such a mixed bag out there at the moment, it really varies from lender to lender (and this was true even in normal times, but made worse by the current environment) how long things take.

You'll get a conditional offer from the bank first if your application is accepted. Then the bank will need to value the property and if they are happy with the valuation then you'll get a firm offer. As PP said, it can take a while to get the valuation done at the moment in some cases due to corona backlogs and guidelines.

Your solicitor will not let you exchange without this firm offer being issued to them. The dates you've been given are target dates to give everyone something to work towards but not set in stone. If you've done everything you need to re making an application in a timely manner and things are not ready by the end of August a reasonable vendor shouldn't penalise you for that.

Original poster
AmateurHour · 19/07/2020 21:05

Oh that’s bad!!

We’re both end of chain And have had solicitors in place for 1.5 weeks (about 3 days after my offer was accepted) so I think it’s fine. I was also the first person to view before it even went online and I made an offer after my second viewing Which was the following day.

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SheldonSaysSo1 · 19/07/2020 21:26

We've recently had ours approved and it took about three weeks. No particular reason just a huge back log due to furlough and increased demand. I'm shocked to see your completion time line being so quick - its something I could only dream of!

Original poster
AmateurHour · 20/07/2020 10:12

Which bank was that with Sheldon? That sounds quite fast from what I’ve been hearing! I’d love it if mine is that quick! It’s been in one full week now, feels like a year. I really don’t think we’ll be done by end of September

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BeijingBikini · 20/07/2020 10:34

We didn't action any solicitors until the offer came through, I think that's pretty standard. Why would you pay up money when you don't even know if the bank will lend to you yet?

Original poster
AmateurHour · 20/07/2020 10:48

I got solicitors because I kept being told that’s what I needed to do next but I’m more hesitant with the surveyer

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notheragain4 · 20/07/2020 10:58

@BeijingBikini it's not standard, there's no standard way of buying a house. I've always actioned solicitors as soon as I've had an offer accepted (but I use no purchase no fee solicitors so it's just the deposit) But in the current climate especially with mortgage applications taking exorbitantly longer in many cases I think it's important to be upfront if that's the course of action you are taking, but if the estate agent hasn't pressed then maybe they aren't concerned, in our case we had made it a condition of sale that they were actioned ASAP.

BeijingBikini · 20/07/2020 11:15

Yes, we told the estate agents/sellers right from the start that we were waiting for the mortgage offer before paying for surveys and searches. They were OK with it, as it was all happening over lockdown so there wasn't any way to hurry it up/find another buyer anyway.

WaffleCash · 20/07/2020 11:24

5x salary might be pushing it, I think there are additional limits now for lenders who are lending over 4.5 times salary

SheldonSaysSo1 · 20/07/2020 13:15

We are with Halifax. It was the valuation which caused the delay. Also, if you have a mortgage advisor they should be pretty confident that you will be approved before they recommend products.

Original poster
AmateurHour · 20/07/2020 14:36

My mortgage in principle cleared it Waffle is it likely they’d change it for the full application?

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