How long does a mortgage application take
The length of time for a mortgage application to be approved is lengthening. The longer timescale is creating application anxiety for many eager homebuyers. Here we take a look at why the mortgage application process is lengthening, how long it will take, and what you can do to have your mortgage complete sooner.
Why mortgages are taking so long to complete
The first reason that mortgages are taking longer to complete is that lenders are much more cautious in light of the COVID-19 epidemic and economic uncertainty. A more cautious approach with more stringent checks means that lenders take a lot longer to approve cases. Also, solicitors are working from home, and this is slowing their part of the process.
A second reason for longer mortgage completions is strong demand due to the stamp duty holiday. The holiday means that stamp duty land tax (SDLT) is charged on properties over £500,000 instead of the usual £300,000. The stamp duty holiday deadline is 31st March 2021, and the government has ruled out a stamp duty extension.
How long did mortgages take to complete before COVID / how long do they normally take?
Property purchases used to take about 2-4 months, and remortgages used to take about 6 weeks from start to finish. Property searches used to take 2-3 weeks.
So how long will they actually take?
A property purchase takes anything from 3 months to 12 months, depending on the chain and choice of the lender and solicitor. A remortgage takes about 3 – 6 months now, and property searches are taking about 6 weeks.
How to get a mortgage completed quickly / sooner
Good planning and preparation will ensure your mortgage completes quickly. You can check your credit file beforehand and send Friends Capital a copy to ensure no time is wasted placing the case with the correct lender. You should ensure all correct documentation is ready to hand and chase your solicitor to keep the case moving.
If you are anxious to move into your new home or meet the extended stamp duty holiday deadline, then a bridge loan may be the solution you need. A bridging loan provides short term finance so that you can move quickly. You can then refinance this loan with a mortgage after you have moved.
Bad credit bridging loans are also available. You can discuss homeowner loans with bad credit with the experts at Friends Capital. We have established strong relationships with lenders who specialise in home owner loans with poor credit, helping you get the finance you need.