How long does mortgage approval take?

[Tony]

guys i'm sure this has been answered here before but we have placed a deposit on a house and are still awaiting mortgage approval (this shouldnt be a problem) we have appointed our solicitor and the contracts have been sent out can we sign these without approval first or what happens and also how long does it normally take for approval

 

[cobalt]

My bank (BoI) managed it inside a week, but they knew I was in a huge rush... I wanted to go for a property at auction and hadn't a thing organised. But I think normally it would probably take a fair bit longer.

 

[mallow]

You can sign the contracts before you get approval, but your solicitor will advise you against it and have you sign a form stating you are aware of the risk first. It’s your decision at the end of the day.

The problem is that if, for any reason, you don't get approval, you are tied into a binding contract for a lot of money. If you then need to pull out, you will lose your deposit.

The best thing to do is to chase your bank to make sure that they have everything they need from you and are working on it. Often, the bank will be waiting for you to sign some form, or provide a document, and won’t tell you until you ask why it’s taking so long. Don’t make them crazy by ringing them every day though!

Unless the Vendors are putting pressure on to send contracts back you should be ok. If it’s a new house, builders solicitors often get impatient for returned contracts more quickly than most…. Your solicitor will tell you if the Vendors are setting a deadline for return of contracts. Then it's time to make friends with your bank manager!

 

[Aido]

The big delay is getting all of your paperwork together, i.e. bank statements, salary certs, P60 etc. etc. - they are meticulous on your financial backup documentation so order all of this stuff immediately... from once everything is submitted and all is in order most lenders will turn it around in 2-5 days - if you're comfortable about being approved and you're in a hurry, push them hard to turn it around sooner... consider using a good broker to do the pushing/haggling for you

 

[Petal]

After submitting the application form including all the paperwork as mentioned by Aido, I got a call after two days saying it was all ok and had the letter in the post another 2 days later. So once they have all they need it takes them no time at all!

 

[bobaloulou]

I handed all my documentation into the bank through their letter box on a tues morn before the bank opened and i was called that afternoon saying that everything was in order and that they would send out the letter straight away. As long as you have all the relevant paperwork, it should be fairly quick.

 

[demoivre]

..........and if the mortgage is for a PPR don't forget to organise your life assurance - you won't need it for mortgage approval but you more than likely will need it before you can draw down the funds.