All banks follow similar procedures when considering a mortgage application. The normal first step is an assessment of your credit worthiness, judge the likelyhood of you repaying the mortgage in a timely manner. To do this they will check your credit record file, which will give them some information about how much debt you already have, and crucially how well you performed when paying previous loans you may have had. They will assess your history and income, and write to your employer or accountant for confirmation. They will normally agree to do this before you find a suitable property, providing you have a good idea of how much you wish to spend.

If you pass the creditworthiness test, the bank would make an offer in principle - subject to you finding a property that they consider suitable for securing the loan.

The amount they would loan is chiefly governed by the two factors. Salary multiplies by a factor of 3.25 to 4.25 for an individual, or joint salary multiplied by a factor of 2.75 to 3.5 for a couple intending to buy jointly. The second factor, known as 'loan to value' may cap that amount. Most banks will loan up to 95% to first time buyers, and some will loan 100%. This means that if the house is worth £100k, they will loan you £95k. You need to fund the rest yourself. Most banks have a range of packages, and the maximum loan to value will be dependent on the particular package they will consider you for.

Now it is time to find a suitable property. Clearly, the property must be within your budget. The bank will also wish to assess the property to establish if it is suitable as security for the loan you are asking for. They, or occasionally you, will appoint a surveyor for this task.