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It is not uncommon nowadays for applications to move to offer within 7 days, especially with the help of an efficient Mortgage Broker.
The more efficiently presented a mortgage application is, with the full documents required prepared in advance, the quicker this process can be. It is not uncommon nowadays for applications to move to offer within 10 days, especially with the help of an efficient Mortgage Broker.
Some lenders do move slower than others, especially if they have the very lowest rates and are busy. Timings should be taken into account when deciding on which lender to proceed with. Sometimes taking a slightly higher rate to meet the required deadlines will make all the difference in securing your dream home.
Get your documentation in order – Preparing for a mortgage starts early so make sure your documentation is in order. Lenders usually request detail of last three years address history, (no gaps), your last three months’ payslips and last P60 or three years accounts, your last three months bank statements and full details of any loans or credit cards you have. Providing this information on day one can speed up the process no end.
All lenders want to make sure they are lending money to someone who is highly likely to pay it back. You can check your credit record on-line, some companies will offer you a check for free or a free trial of their services. Simple things like paying all your credit cards on time and making sure you are on the voters roll at your current address will. You can obtain your credit report FREE from www.noddle.co.uk
Research the different ways of finding a mortgage lender yourself by visiting your bank or building society or visiting on-line comparison websites. If you want independent advice though you are best to speak to an Independent Mortgage Broker such as True Cost Mortgages and we’ll do the work for you!
To make sure you have the best chance of securing a home you make an offer on, we suggest that you secure a mortgage Agreement in Principle (AIP).This will confirm in writing how much a lender will be prepared to lend you, subject to a full mortgage publication. This AIP can then be used to confirm to the vendor your credit worthiness and that you are a serious buyer.
This can be the most time consuming part and some lender’s applications can be very detailed. Lenders will want full details of your employment or business, your existing loans or credit cards, bank account details and of course full details of the property you wish to buy. This is the first stage that any money is actually spent, as some lenders will also take a non-refundable “administration” fee at this stage and will want payment for the valuation fee as well.
This is the most frustrating part as the timing of this varies from lender to lender! Firstly, the lender will check all the documentation you have sent them, (pay slips, bank statements, accounts, etc.), and they may also find some further information that they want clarification on. If your preparation has been right however, this stage can be very quick.
Secondly, they will need to carry out their own valuation on the property (which you have paid for!), which will look at the overall condition and marketability of the property and then produce a valuation figure.
Once underwriting has been successfully completed, finances checked and assuming the valuation figure is acceptable, the lender will produce a full Mortgage Offer which will be sent to both you and your solicitors. This will detail the loan amount, the monthly repayments, details of the mortgage product and terms of the loan. It will also detail any special conditions that need to be met by you and/or your solicitor.
The mortgage offer is not the only thing you should be concerned with. Once the property is yours, it is very important that you consider whether you will be able to keep your home should anything unfortunate happen. Life cover should be considered and written in trust where appropriate, whilst ways of protecting yourself and your family should you suffer an illness, become unable to work or made redundant should be taken into account. You will also need to arrange buildings and contents insurance to protect the property and your possessions ready for exchange.
Once the solicitor receives the full mortgage offer they will complete a “Report on Title”. This will include looking at Local Authority Reports, (checking there are no hidden mine shafts or a runway planned in the garden!), checking that the lease is all in order for leasehold properties and answering any specific questions the lender may have raised. Once complete this is then sent to the lender to review.
Once all parties, lender, solicitor and vendor, are happy an exchange and completion date is set. Exchange is the first date after which neither the buyer or seller can pull out of the transaction without large financial costs. In other words, the property is yours and the completion date is when you actually receive the keys and start moving those boxes.
The business advice centre limited T/A True cost mortgages is an appointed representative of Julian Harris Mortgages Ltd, which is authorised and regulated by the Financial Conduct Authority. We are Registered in England and Wales. Registered Address Suite 4, 48 Westgate, Skelmersdale WN8 8AZ. Registered Company No 7931506. We are an appointed representative of Julian Harris Mortgages Limited, Julian Harris House, Musgrove, Ashford, Kent, TN23 7UN, which is authorised and regulated by the Financial Conduct Authority. Julian Harris Mortgages Limited FCA Register number is 304155.
We will provide you with a free initial consultation and we will always explain exactly what you will be charged before you choose to proceed with an application. Our professional fee charged is £349 which is payable upon receipt of your mortgage offer. We will also be paid commission from the lender.
For Lifetime Mortgages our professional fee charged is £995 which is payable when your mortgage completes. We will also be paid commission from the lender.
Please Note think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages such as commercial BTLs are not regulated by the FCA.
‘The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk.’
Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration. Equity release may impact the size of your estate and it could affect your entitlement to current and future means-tested benefits.
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