Guide to Mortgages

The Mortgage Process – how a mortgage consultant will help you

First Step

• Work out your budget based on how much you are prepared to pay on a monthly basis
• Consider how you intend to repay your mortgage. Do you wish to repay the mortgage gradually or do you have alternative investment plans to repay the mortgage at the end of the term?
• Consider how long you would like to hold the mortgage
• Do you require your rate to be fixed so it doesn’t change or are you happy with it moving up or down in line with changes to the Bank of England base rate

Second Step

These answers will help your mortgage consultant to understand the type of mortgage product you might be interested in. The mortgage consultant will also ask you questions about your type of employment, payment structure and benefits package. This will enable the consultant to consider other types of mortgages available to you and who the most suitable lenders would be.

Third Step

After these discussions your consultant will approach various lenders on your behalf and then revert to you with a cost analysis and proposal on which lenders they recommend. You will normally find the mortgage consultant has access to exclusive and semi-exclusive products. This, with their relationships with the lenders, should enable you to secure a better rate.

Fourth Step

On agreeing the most suitable lender, rate, fees and product, the consultant will strive to secure you an ‘in principle’ agreement with the lender which will include running a credit check to ensure the lender is happy to finance your purchase.  You will receive a document that states the lender is prepared to lend you the money, subject to you providing the relevant documentation to support your application.

Fifth Step

Armed with this information, you can now confidently make an offer on a property. Once your offer has been accepted, your consultant will then continue with your mortgage application. This process normally ensures the valuation/survey is arranged. After that, your consultant will provide you with your mortgage offer. Typically, this takes two to four weeks.

Sixth Step

The mortgage offer is sent to you, your solicitor and the mortgage broker. All three parties need to check the offer. Then, the conveyancing solicitor takes the transaction through to exchange and completion.