Credit Scores, Mortgage Eligibility and the Mortgage Application Process
Your credit history can affect the mortgage options available to you, while understanding the journey from a Mortgage in Principle to a formal mortgage offer can help you plan your home purchase.
Below, we answer common questions about credit scores, improving mortgage eligibility, application timescales and how long mortgage offers remain valid.
Does a Mortgage in Principle affect my credit score?
No, most Mortgage in Principle applications use a soft credit check, which does not affect your credit score.
A soft credit check gives the lender an overview of your credit profile without leaving a visible mark for other lenders. This makes a Mortgage in Principle a useful early step when planning your purchase.
A soft search:
- Gives lenders an overview of your credit profile
- Is visible to you but not to other lenders
However, if you proceed to a full application:
- A hard credit check will be carried out
- This can have a small, temporary impact on your score
Getting a Mortgage in Principle early is useful when buying, as it shows you are financially prepared and ready to proceed.
What happens if my mortgage offer expires before completion?
If your mortgage offer expires before your new home is ready, your broker can usually request an extension or help you arrange a new offer.
This is relatively common with new build homes, as mortgage offers typically last around six months and build timelines can occasionally run longer. Lenders understand this and may allow extensions, subject to updated checks.
Your broker will usually:
- Request an extension from your lender
- Help you reapply if a new mortgage offer is needed
To avoid issues before completion:
- Keep your financial situation stable
- Avoid taking on new debt
- Respond quickly to requests from your broker, lender or solicitor
- Keep all parties updated if your circumstances change
When purchasing an Allison Homes property, your sales team will help track build progress and keep your broker informed so the mortgage process stays aligned with your expected completion date.
What is a mortgage in principle and how long does it last?
A Mortgage in Principle is an early indication of how much a lender may be willing to lend you, based on initial checks.
It is not a full mortgage offer, but it can help you understand your likely budget before you start choosing a home. It can also show developers that you are financially prepared to proceed.
A Mortgage in Principle is usually:
- Valid for 30 to 60 days
- Based on income, credit profile and basic financial details
It helps you:
- Understand your budget
- Strengthen your position with developers
- Move quickly when reserving a home
Getting a Mortgage in Principle early can make the buying process smoother, especially if you are ready to reserve a new build home.
How long does it take to get a mortgage offer?
Most mortgage offers are issued within two to three weeks, although this can vary depending on the lender and your application.
The process may be quicker if your documents are ready and your application is straightforward. It may take longer if the lender needs extra information or if the valuation takes more time.
Timelines depend on:
- How quickly you provide documents
- The lender’s processing times
- Whether additional checks are required
Delays can occur if:
- Information is missing
- Income is complex
- The valuation takes longer
Working with a broker helps keep the process on track, especially when working to reservation timelines on a new build home.
