So, you’re ready to take on the exciting journey of getting a mortgage. Well, buckle up because it’s quite the process, but don’t worry, the Mortgage Advice Center is here to break it down for you in a way that is jargon-free and easy to understand.
First things first, is research. Gather all the necessary documents and get in touch with us. Then comes the fun part – submitting your application and crossing your fingers! The lenders will scrutinise your financial situation and creditworthiness, but hey, you’ve got this! Once you’ve nailed it, you’ll be well on your way to securing that dream home of yours. Trust us, it’s totally worth it, and we’ll be here to guide you every step of the way.
Let’s dive in and make homeownership a reality for you!
Our mortgage brokers are very experienced so they are able to make the mortgage application process as simple, quick and straightforward for you as possible:
WHAT HAPPENS FIRST DURING A MORTGAGE APPLICATION PROCESS?
Our experienced broker will first ask for a general overview of your situation as we embark on the mortgage application process. As our brokers are very experienced they will be able to immediately tell if it is something that they are able to help you with and if it would be worth your while continuing with the enquiry.
The broker will then go through your general details which will include your income, assets, liabilities, expenditure and any credit issues.
They will discuss your requirements in more detail to make sure that they are sourcing you the correct mortgage whilst offering you tips to make the process even smoother.
HOW MUCH CAN I BORROW?
This is always the number one question we get asked every single time. Once we’ve got all your details, we will work out just how much the mortgage lenders will be prepared to lend you.
We will then compare all of the rates from across the market and go through the costs of the specific products with you to narrow down a preferred lender. Once you’re happy and you’ve asked all the burning questions you need to ask, our brokers will send an email requesting proof of ID, income and bank statements to support your application. As soon as we get these, we can start the ball rolling.
What is an Agreement in Principle?
An agreement in principle (AIP), also known as a mortgage in principle or decision in principle, is a nifty little thing that can make your mortgage journey a whole lot smoother. Think of it as a mini pre-approval from a lender. Basically, you provide some key info about your financial situation, income, and credit history, and the lender gives you a thumbs-up (fingers crossed!) on how much they might be willing to lend you. It’s not a guaranteed mortgage offer, but it’s a solid indication that you’re on the right track. Having an AIP in your back pocket can give you the confidence to start house hunting, knowing that you’re in the running for that sweet, sweet mortgage.
Your potential lender will then do a credit check and assess all the information you have provided. Once the Agreement in Principle has been accepted, we’ll be in touch to provide you with the certificate which you can show estate agents that you are able to obtain a mortgage.
WHAT HAPPENS AFTER YOU HAVE AN OFFER ACCEPTED ON A PROPERTY?
Once you’ve found the house of your dreams, give us a quick ring and let us know. Our brokers will then confirm the mortgage amount and purchase amounts and confirm the most suitable mortgage product for you.
This is also when we go through the full application with you and apply directly to the lender. Congrats, you’re on the road to becoming a homeowner.
We will require details of the property you want to buy, the estate agents that are handling the sale, and details of the conveyancer/solicitor that you are using. If you don’t yet have a solicitor, don’t worry. We can recommend some amazing conveyancers who will be able to help.
DIFFERENT PROPERTY VALUATIONS
When it comes to valuing a property for mortgage purposes, lenders in the UK offer a couple of options to determine its worth. First up, we’ve got the basic valuation. This is typically the most common and affordable option. A surveyor, appointed by the lender, will visit the property to assess its condition and provide a basic valuation report. It gives the lender an idea of the property’s market value and helps them determine how much they’re willing to lend.
Now, if you’re looking for a more detailed analysis, you might consider a Homebuyer’s Report. This goes beyond the basic valuation and provides you with more information about the property’s condition. The surveyor will identify any potential issues or repairs that might need attention, giving you a heads-up on what you’re getting into.
Lastly, for older or unique properties, you might want to opt for a Full Structural Survey (also known as a Building Survey). This is the most comprehensive and expensive option, but it’s worth it if you want a thorough assessment. It covers everything from the roof to the foundation, pointing out any structural concerns or major repairs needed.
Remember, the valuation options are chosen and paid for by you, the borrower, but the lender will usually require at least a basic valuation for mortgage approval. The lender will always do their own valuation but it’s a good idea to do your own too. So, consider your needs, budget, and the property’s condition when deciding which valuation option suits you best.
At this point, we will submit your mortgage application and a full credit check is performed.
AFTER THE APPLICATION IS SUBMITTED
Once the application has been submitted, the mortgage lender will instruct their valuation.
Mortgage lenders conduct their own property valuation for a few important reasons. First and foremost, they want to ensure that the property you intend to purchase is worth the amount of money they’re lending you. It’s a way for them to protect their investment and mitigate any potential risks.
By conducting their own valuation, lenders can independently assess the property’s market value. This helps them determine the loan-to-value ratio (LTV) and establish the maximum amount they’re comfortable lending to you. They want to make sure that the property’s value aligns with the loan amount, as it serves as collateral for the mortgage.
Additionally, lenders want to ensure that the property meets their lending criteria and standards. They assess the condition and structural integrity of the property to identify any potential issues or risks that could affect its value or its ability to recover their funds in case of default.
By conducting their own valuation, lenders have more control over the process and can rely on the expertise of professional surveyors or valuers who work on their behalf. This allows them to make informed lending decisions and provide accurate mortgage offers based on the property’s value and condition.
Ultimately, the lender’s property valuation is a crucial part of the mortgage application process, helping them assess the risk and make an informed decision on whether to approve the loan.
Our brokers here at the Mortgage Advice Center will correspond with the lender and provide any required information to support your application. We will keep you up to date on the progress of your application so you know if there is anything else you need to provide.
Mortgage application processes can be something difficult but thankfully our brokers have direct access to lenders which can save a lot of time. Their valuable experience will also help as the case progress as different lenders operate in different ways. If there are any issue with the mortgage valuation, our brokers will help resolve matters quickly. Once the valuation has been met, you will receive the mortgage offer! This is basically the lender agreeing to offer you a mortgage.
AFTER YOU RECEIVE A MORTGAGE OFFER
Once your mortgage has been offered, you and your conveyance will receive a copy of the offer. The conveyance will then co-ordinate with the lender and the vendors conveyancer and arrange the purchase. Essentially once we have your mortgage offer, the main bulk of the mortgage brokers job is done however we are always happy to help if required during this part of the process
THE IMPORTANT INSURANCE BIT
After the mortgage offer is received, our broker will run through the life insurance, buildings insurance and protection options with you to make sure that you and your property are adequately covered if the worse was to happen
CELEBRATE YOUR NEW HOME
At last, you get the keys and move in to your new pad. Get the champagne out and celebrate. Our staff are always available on the phone and happy to help answer any questions. We will contact you about 7 months before your existing deal ends to make sure that we get you the best re-mortgage or product transfer rate. The majority of our clients stay with us, trusting us to ensure their property is being remortgaged efficiently – saving you money and time.
HOW LONG DOES THE MORTGAGE OFFER TAKE THROUGH A BROKER?
Obtaining a mortgage through The Mortgage Advice Center will be much quicker than going direct to a bank and as we are ‘whole of market’ we compare across all of the lenders. The reason why we are quicker is that you will immediately be put in contact with an experienced and qualified broker who can answer questions straight away. As we are not a huge firm we are easily contactable, no waiting on hold. We are very quick and efficient and our point of difference is being able to provide customer service and process applications quickly.
Ultimately the time it would take to get a mortgage offer will depend on the mortgage lender that is used as their time scales will vary. With some lenders we have had an offer within 3 days (automated valuation) On average we should have an offer within 20 days as long as we are provided with the all the documents on time and the valuation is able to be done in a timely manner.
WHAT DOCUMENTS DO I REQUIRE?
- Passport or driver’s licence
- Utility bill or banks statement dated in the last 3 months that has your current name and address on it
- If employed : Last months payslip
- If using commission/ bonus : Last 3 months payslips
- Latest one months personal bank statement
- If a sole trader or partnership : Latest 2 years personal tax calculations and tax year overviews
- If a LTD company Director : Latest 2 years personal tax calculations and tax year overviews some lenders will take share of net profit and may require the company accounts
- Latest 3 months business statements showing income going into the business
- Latest 3 months personal bank statements
Pension or benefits
- Latest pension statements
- Latest month bank statement showing benefits
- Maintenance payments – Last 3 months bank statements