A lender will assess each application according to their lending criteria. These vary from lender to lender, but typically take into account the amount you want to borrow, the property in question, your credit history and your employment status. This is to satisfy them that you will be able to repay your mortgage.

They will perform a check on your credit history and ask for any references they need, for instance from your employer. If the lender is initially satisfied with your application, they will first provide you with an agreement in principle. This provides confirmation that they are willing to lend to you and will allow you to book a specific mortgage product.

If everything is proceeding normally, they will arrange for the valuation to be carried out. You will receive written confirmation of the outcome of the valuation and survey if you chose this option.

When your formal application is made, and you have met all the lender’s requirements, you will then be made a formal offer. If you accept, then this will be sent to your chosen solicitor as confirmation that the lender will provide the money when the time comes to exchange contracts. The offer may be made on condition that you immediately take out buildings insurance for the property that you propose to purchase, so that you are covered should something happen that will affect its value.