BANK RATE ANNOUNCEMENT
On 2 November 2017, the Bank of England announced that the Bank Base Rate would increase with immediate effective from 0.25% to 0.50%.
When you’re starting a new mortgage application it's important to understand the process before you begin. Our guide to the online application process will help you find out how it works and how we can help you through your journey to buying a new home.
If you are beginning the process of buying a new home you might also find the information on our lending criteria useful.
Before you begin your mortgage application with us, it’s important to find out how much we will lend to you and how much it might cost. You can use our borrowing calculator to get an idea of the amount you may be able to borrow and our repayment calculator to get an indication of how much the prospective monthly repayment on a mortgage might be.
Once you have an idea of the amount you may be able to borrow, you need to obtain an Approval in Principle (AIP).
Our online AIP takes around 10 minutes to complete and will confirm whether we’ll be able to provide you with a mortgage. When completing an AIP you will need to have certain information to hand (see below), this is so we can provide an accurate decision.
You should be aware that when applying online, you won’t receive any advice on your application. Read our guide to find out what this means.
As part of the process we’ll carry out a credit check so you may want to review your credit file before starting the AIP to make sure your details are up to date and that it reflects your current financial situation. See our privacy section for more information on credit checking.
Joint applications this applies to each applicant.
An AIP is valid for 30 days. You can save your decision and come back later to complete the full mortgage application (step 3 below) or you can continue immediately and provide the rest of the application details.
If your AIP is 'Referred', don't worry. It means that our Underwriting department needs to look at your application further and may need to ask you for more information. If this is the case they’ll contact you by email, usually within 24 hours.
If you have already obtained an Approval in Principle, this means that you are able to move forward with a Full Mortgage Application.
With a successful Approval in Principle (AIP) obtained you are free to complete your full mortgage application (FMA). When you are ready there are 2 choices for this:
ONLINE – you can continue online by logging into the website and selecting your application.
BY PHONE – if you want to discuss your application or you need advice, you should complete your application by calling our contact centre. The information you provided for your initial application will be transferred to the mortgage adviser, meaning you won't need to start the process again.
When you proceed with your full application, you will choose a mortgage product, be asked for extra information about your employment and the property to be mortgaged and provide us with the details of the legal adviser who is acting on your behalf. If you need some assistance choosing a solicitor or licensed conveyancer you can use our Conveyancing service to help you.
There are usually fees involved with processing a mortgage application– this can include a product fee, a mortgage application processing fee and valuation fee - for a full breakdown read our help page on fees and costs.
An important point to consider at this stage is that we may ask you to provide evidence for your income, employment and any financial commitments.
Before you begin a mortgage application you should look at our Key Facts Illustration page. This will provide you with a comprehensive summary of any product available to you, including the amount of monthly payments and any fees you must pay.
Once your application is complete, we will let you know as soon as possible if we need anything else from you.
When you apply for a mortgage, we have a responsibility to verify your identity under the regulations for money laundering and the prevention of financial crime. We use an electronic verification system to verify your identity although in some cases we may also need additional proof of identity (if, for example you have recently moved or are not on the electoral roll).
If we are not able to verify your identity using the electronic verification system, you will need to provide documentation to prove your identity and address. To see what documents we accept, you can read our Identification requirements leaflet:
All documents you send must be either originals or certified true copies. You should not send any original documents with your photograph or signature. You can find the guidelines for certifying your documents on our Verifying your Identity help page.
We will arrange for a valuation to be carried out on the property to be mortgaged. There is a fee to pay for the valuation (unless you've selected one of our fee-assisted mortgage products) and this will need to be paid before the valuer can visit the property. For further details of valuations and a breakdown of costs, please visit our Mortgage Valuations help page.
You may want to consider having a survey carried out in addition to the valuation as this can provide additional protection by alerting you to potential problems with a property before you buy. Surveys will cost more but they provide a more detailed report on the property. There are three types of survey – a Home Condition Report, a Homebuyer Survey and a Building Survey. For more details on the types of survey available, see our Homebuyer Checklist.
After your application has been processed and the valuations and surveys (if applicable) have been carried out, we will move towards providing you with your mortgage offer. A copy of the offer will also be sent to your legal adviser.
Most of the work between the mortgage offer and completion will be done by your legal adviser. This involves arranging the exchange of contracts between you and the seller, arranging for any important documentation to be sent to you and setting up the transfer of funds for the property purchase.
Shortly after completion we’ll write to you to confirm that your mortgage direct debit has been set up and to let you know the first payment date. If you are eligible for cashback (this depends on the product you selected) this will be paid after completion.
Like the process for a new house purchase, with a Remortgage you will receive a mortgage offer from us when you have completed a successful mortgage application. When a date for completion is agreed with us as the lender, the funds for your remortgage are then released to your legal adviser.
Use our simple calculator tools to work out how much your repayments could be, how much we could lend to you and if an Offset mortgage could save you money.