Getting a mortgage doesn't have to be daunting. This step-by-step guide walks you through the entire process, so you know exactly what to expect at every stage.
Step 1: Check Your Credit Score
Before approaching lenders, check your credit report with Experian, Equifax, or TransUnion. Look for errors, ensure you're on the electoral roll, and pay down any outstanding debts. A clean credit history gives you access to better rates.
Free Credit Checks
Step 2: Work Out Your Budget
Most UK lenders offer 4 to 4.5 times your annual income. If you earn £35,000, expect to borrow around £140,000–£157,500. Factor in your deposit — the larger it is, the better your interest rate.
Typical deposit tiers:
- 5% — Available but higher rates
- 10% — Significantly better deals
- 15-20% — Best rates available
- 25%+ — Premium products unlocked
Step 3: Get an Agreement in Principle (AIP)
An AIP (also called a Decision in Principle) is a conditional offer from a lender confirming how much they'd lend you. It typically lasts 60–90 days and shows sellers and agents you're serious.
You'll need: ID, proof of address, 3 months' payslips, 3 months' bank statements, and details of any debts.
Step 4: Find Your Property
With your AIP in hand, you can house-hunt with confidence. Register with estate agents like Haus Estates, set up property alerts, and attend viewings. In Leicester and Loughborough, properties in popular areas can move quickly — having your AIP ready puts you ahead.
Step 5: Make an Offer
Once you've found the right property, make your offer through the estate agent. Your AIP strengthens your position. Be prepared to negotiate — your agent can advise on fair pricing based on comparable sales.
Step 6: Submit Your Full Mortgage Application
Once your offer is accepted, submit the full application. Your lender will:
- Verify your income and employment
- Check your credit history in detail
- Commission a property valuation
- Assess affordability
This stage typically takes 2–4 weeks.
Step 7: Property Valuation
The lender sends a surveyor to confirm the property is worth what you're paying. This protects them — and you. If the valuation comes in low, you may need to renegotiate or increase your deposit.
Step 8: Mortgage Offer
If everything checks out, the lender issues a formal mortgage offer. This is legally binding and usually valid for 6 months. Your solicitor receives a copy and can proceed with conveyancing.
Step 9: Conveyancing and Searches
Your solicitor handles:
- Local authority searches
- Environmental searches
- Title checks
- Drainage enquiries
- Contract review
This stage takes 4–8 weeks on average.
Step 10: Exchange and Completion
Exchange: Both parties sign contracts and you pay your deposit (usually 10%). The sale is now legally binding with a fixed completion date.
Completion: The mortgage funds transfer, your solicitor pays the seller, and you collect your keys. You're a homeowner.
Common Mortgage Types
- Fixed rate — Payments stay the same for 2, 3, 5, or 10 years. Predictable budgeting.
- Variable rate — Payments can go up or down with the Bank of England base rate.
- Tracker — Follows the base rate plus a set percentage.
Tips for Leicester Buyers
- Properties in LE1–LE5 postcodes often fall within first-time buyer stamp duty relief thresholds
- Consider areas like Wigston, Oadby, and Syston for better value
- New-build schemes in Leicester may offer Help to Buy or shared ownership options
Should You Use a Mortgage Broker?
Brokers access deals from across the market, including products not available directly. They handle paperwork and can save you thousands over the mortgage term. Many charge no fee to the buyer.
Ready to start? Contact Haus Estates and we'll connect you with trusted local mortgage advisors who specialise in the Leicester market.
