Applying for a mortgage

Once you're ready to buy, it's time to make a mortgage application by completing and returning an application form (which you can sometimes do over the phone.)

You will initially receive a Key Facts Illustration, which will detail all the costs and features of your mortgage and will enable you to compare your mortgage with other lenders' offers. In addition, your lender will usually want to see evidence that you will be able to keep up your repayments and for this you'll typically need to show the following proof:

• Your last three months' payslips and your P60.
• Two or three years of audited accounts if you're self-employed.
• Proof of identity such as your passport.
• Proof of your address e.g a recent bank statement.
• A direct debit mandate so they can take repayments from your bank.

If you're asked to send originals, please make sure you do so. Photocopies will not be accepted.

For a joint mortgage, your lender will need documents from you and your partner or associate. You might also have to pay a non-refundable fee to cover their administration costs and a valuation.

Don't try and second guess the kinds of evidence you need to provide your lender for your first mortgage application, just ask them. That way, things will move quicker for you.

Be sure to take advantage of the range of services that most lenders offer, such as applying over the telephone or via a network of Mortgage Advisors.

Typical costs to consider when buying your home

• Application Fee - a fee is usually charged by the lender when applying for the mortgage and typically paid on completion. This can be added to your mortgage so you won't need to find the money up-front.
• Valuation of Property (Basic Valuation) - A typical cost would be between £225 - £500 for properties between £75k - £300k.
• Legal / Conveyancing Fees Typically £50.
• Stamp Duty 1% of the purchase price over £175k - £250k, 3% for properties over £250k - £500 and 5% for properties over £500k. Properties under £175k do not require Stamp Duty to be paid.
• Land Registry Fee - can start from as little as £3 (visit their website for more information)
• Local Authority Search Fees.
• Other Search Fees and Disbursements.
• House-hunting expenses e.g. petrol, time off work etc.
• Removal Fees - contact a removal company who will be able to provide a guide quotation for you (see Further Information for a contact number for the National Guild of Remover and Storers).
• Once your application is returned, it will then be assessed by the lender.  If both your application and the property you wish to buy is acceptable and the survey shows no issues, then you will be sent a formal offer, which usually secures the mortgage funds for a period.  Check with your lender about how long the offer will remain valid.