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How to apply for or switch mortgages

This guide on how to switch mortgages outlines how to apply for mortgages online and how to switch mortgages.

A mortgage is most people's biggest financial commitment. To avoid any pitfalls, follow our advice to apply for or switch mortgages.

Compare mortgages

The first step is to compare mortgages. You just need to answer a few questions about yourself and your property, and then we'll show you the best deals we find – including some that aren't available on the high street. Once we've found the right mortgage for you, we'll either put you in touch with the provider or arrange for an expert broker to contact you to assist with your application.

Fill out the application

When you've decided on a mortgage, you'll need several bits of information to complete the application:

• Address - you'll need to give this for the last few years to allow a search to be done at a credit reference agency.
• Bank account details - time with the bank, account details etc.
• Details of your outgoings - bills, other loans, and any regular commitments.
• Employment details - including tax reference number, length of time at employer, salary and so on.
• Proof of income - salary, rental income and so on.
• Similar details for partner - if a joint application.
• Property and loan details – how much and how long you want to borrow, and details of the property (if you know).

You can apply for a decision in principle even if you haven't yet found a property. This will speed up the eventual buying process and reassure the sellers.

The mortgage company will need to be satisfied with whatever property you decide to buy before it releases the money.

Proving your income

You're likely to have to prove your income – by giving your most recent payslip, and your P60s for the last couple of years, say.

If you're self employed or your pay is mostly commission, you can get a self certification mortgage. You won't have to prove your income - but you'll pay a higher rate of interest, as there's more risk to the lender.

Put aside money to pay the fees

There are several fees you're likely to have to pay.

You'll need to pay any mortgage arrangement and valuation fees, but also legal fees and stamp duty if you're moving home.

You can add mortgage fees to the loan if you want – but you'll pay interest on them for the full term of the loan if you do. It's better to pay them upfront if you can.

Tips for the first-time buyer

The credit crunch has made it harder for first-time buyers.

You may need a bigger deposit to get a mortgage, and the best deals are now normally available only to those with large deposits. As first-time buyers tend to have small deposits, this means they pay higher interest rates than they used to.

But loans are still available to first-time buyers, so compare mortgages now.

What to do if you're remortgaging

The first thing you should do is contact your current lender and see whether you are liable for any early-repayment charges.

If not, you're free to go ahead and switch. Your conveyancer or solicitor will take care of the details.

The process of remortgaging is a bit simpler than applying for a mortgage when you move, as lots more is known about the property up front.

However, it can still take a couple of months, so if you're remortgaging because your deal is coming to an end, make sure you start the process early.

Do you need a buy-to-let mortgage?

If you're buying a property as an investment, the lenders' valuation will also assess the likely rental income.

Lenders will want to make sure the rent more than covers the mortgage payments

Remember, you generally need a larger deposit for a buy-to-let mortgage.

How to apply for or switch mortgages brought to you by LowerMyBills from Experian

The LowerMyBills guide to how to switch mortgages was created to help you switch mortgages online – compare mortgages, filling in application forms, money for fees, first-time buyer insights, remortgaging and buy-to-let - giving you the information you when switching mortgage or applying for mortgages online.

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