Mortgages and equity release
The Mortgage Process
Buying a new home is very exciting but also has the potential to be very stressful. It is likely to be one of your biggest financial commitments, and the whole process can be daunting.
- If you're buying together with a partner or friends, agree up front how you'll make financial decisions about the property
- Review what you can afford:
- From your savings for the upfront costs of a home - a deposit, moving costs and furnishings etc.
- From your income for mortgage repayments and any other increases in outgoings such as council tax, insurances etc.
- Find out what you can borrow and how much it might cost.
- Don't forget to include Stamp duty in your calculations - a Government tax on property purchases above a specified amount. The amount of tax is based on a percentage of the total purchase price and increases in price bands,
- Choose a mortgage. Talk to our highly experienced and skilled mortgage specialists that will take the time to get to know your circumstances, objectives and preferences. Being independent, they really do research the entire market, using sophisticated I.T. systems, to find the most appropriate mortgage for you.
- Get a mortgage "agreed in principle" - The mortgage lender will need some information to assess whether they are happy to lend you the money. You don't need to have a specific property in mind at this stage, and the offer will usually be valid for a number of months. This will make buying your home a lot quicker.
- Make a formal offer - 'Subject to contract' - once you have found the property you want.
- Complete a full mortgage application - an official application for a mortgage to purchase your chosen property with the lender you have selected.
- The survey - the lender will ask an approved surveyor to conduct a 'valuation report' on the property. You may also want to have a more comprehensive survey carried out at your expense, to ensure that the property is in sound condition. The same surveyor can normally carry out both surveys on the same visit.
Mortgages & equity release section links:
the mortgage process | a guide to mortgages | a guide to equity release
- Appoint a solicitor. The solicitor you choose should be acceptable to your lender, as he or she will also act for the lender. The solicitor's main task is to handle the conveyance, which is drawing up the contracts and making legal enquiries, for example ensuring that there are no building plans affecting the property. Ensure you ask your solicitor for an estimate of charges before they start work.
- Receive the mortgage offer - the lender will confirm agreement of the loan in an "offer of advance" letter to you.
- Contracts are exchanged between you and the seller. You will now sign the contract and pay the deposit. Signing the contract legally commits you to buying the property. Your solicitor will give you a completion date...
• Completion date - contact the estate agent, arrange to collect the keys. Move in!
Your home may be repossessed if you do not keep up repayments on your mortgage.
For advising on mortgages we can charge a fee of typically 0.35% of the loan amount, or we can receive commission from the lender.
