Buying a home is exciting, but the mortgage process can seem confusing, especially if it’s your first time.
Understanding the key steps can make the journey much smoother — and help you feel confident every step of the way.

Here’s a simple breakdown of how the mortgage process works, from start to finish.

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Step 1: Work Out Your Budget

Before you start viewing properties, it’s important to know how much you can afford to borrow — and comfortably repay.

• Look at your income, expenses, and any existing debts.
• Use online mortgage calculators or speak to a mortgage adviser to get an early estimate.
• Remember to factor in additional costs like deposits, solicitor fees, and moving expenses.

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Step 2: Get a Mortgage Agreement in Principle (AIP)

A Mortgage Agreement in Principle (AIP) — sometimes called a Decision in Principle — is a statement from a lender saying they would, “in principle,” be willing to lend you a certain amount based on basic checks.

• It gives you a clear budget.
• It shows estate agents and sellers you are a serious buyer.

Getting an AIP doesn’t guarantee you’ll be offered a mortgage later, but it’s a strong first step.

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Step 3: Find a Property and Make an Offer

Now the fun begins: house hunting!
Once you find a property you love:

• Make an offer through the estate agent.
• If your offer is accepted, the property will usually be marked as “Sold Subject to Contract” (SSTC).

At this stage, you’ll need to move quickly to secure your mortgage.

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Step 4: Apply for a Mortgage

With an accepted offer, it’s time to submit a full mortgage application.

You’ll typically need to provide:

• Proof of income (payslips, accounts if self-employed)
• Bank statements
• ID and address verification
• Details about the property

A mortgage adviser can help you choose the best lender and deal for your situation.

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Step 5: Mortgage Valuation and Underwriting

The lender will now:

• Arrange a mortgage valuation to check the property’s worth (this ensures it’s suitable security for the loan).
• Conduct underwriting — a detailed check of your finances, the property, and the documentation you provided.

They want to be sure you can afford the mortgage and that the property is good value.

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Step 6: Receive a Mortgage Offer

If everything checks out, the lender will issue a formal mortgage offer.

This is the final confirmation that they agree to lend you the money.

• Review the offer carefully (your solicitor or adviser will help with this).
• Make sure you understand the terms before accepting.

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Step 7: Exchange Contracts

At this point, your solicitor will:

• Finalise legal checks (known as conveyancing)
• Agree on a completion date with the seller
• Arrange for you to sign the contract

When you exchange contracts, you legally commit to buying the property and usually pay the deposit (commonly 5–10%).

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Step 8: Completion

On completion day, the mortgage funds are transferred to the seller, and you officially become the new owner of the property.

• You collect the keys.
• You can now move into your new home!

Congratulations — you’re a homeowner!

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Final Thoughts

While the mortgage process can feel overwhelming, breaking it down into simple steps helps make it much more manageable.
Planning ahead, staying organised, and getting advice from a mortgage professional can make a big difference — helping you move into your dream home with confidence and peace of mind.