What are the stages that a mortgage goes through? We’ve pulled this concise guide together so that you can get a full understanding of each of the key stages in applying for a mortgage:
Make the first move! Contact us and one of our friendly team will listen to your requirements and arrange a time for a more in-depth fact find meeting for you with the most suitable individual mortgage broker for your requirements. We have specialists with years of experience in contracting, freelancing, umbrella working, mixtures of all, as well as those working via PAYE as a standard employee. All of our advice is free, and there is no obligation to proceed. We only ask for payment when a mortgage has been produced – meaning we back ourselves to get what you need.
We’ll confirm in writing when the fact find meeting is, who it is with and what information and documentation you will need for this – all well in advance. The meeting will usually take between 30 and 45 minutes, and involves the mortgage broker asking a serious of questions around your financial, work and personal circumstances so that they can get a full picture of your situation. They will provide you with an estimation of the amount you can borrow – based on the information provided at this time, but pending further information being provided and lender confirmation. This allows you to commence your property search or be safe in the knowledge you are looking at the right price range of houses.
Once the fact find meeting has been completed things really start to move in terms of sorting your mortgage. You will receive an email from us after your mortgage appointment that lists all the documents that we need from you to progress your application. Once we have all of these the mortgage advisor will start the process of preparing the formal presentation of the best mortgage for your circumstances, which includes the production of a ‘Decision in Principle’ – which is an indication from a mortgage lender of how much they may be willing to lend you for your mortgage.
When we have all of the documents required the mortgage advisor will work hard on your application to source the best mortgage deal for your circumstances and to finalise all the administration work. We have access to over 12,000 mortgages from more than 90 lenders, so it does take a little time to complete this phase – normally around a week. Once the best deal for your circumstances has been sourced we look to book in a convenient date and time to present the mortgage to you (this can be via telephone or video call) so that we can provide you with a full overview of that deal and to answer any queries you have.
Things are really starting to accelerate now. You and your mortgage advisor will have agreed on the best mortgage deal for your circumstances, and the final bits of administration and paperwork will be prepared so that we can formally submit it to the lender. Once we have submitted the application, which takes around a week (presuming everything is in order and nothing new has cropped up that we need to address), the lender will look to get the property valued – once we know when this is we’re in contact to confirm this with you as well as to advise if there are any additional requirements from the lender.
When the application is submitted to the lender they will review it in full and go through it with a fine tooth comb – not surprising given the amount they are about to lend! They will likely have queries that need answering, but don’t worry as we deal with it all, and will only contact you if we need something specific we don’t already know or cannot evidence. This stage is the part of the process that can take some time unfortunately, as to how long – well it is like asking ‘how long is a piece of string?’ We’re at the mercy of the lender, and as we deal with over 90 different mortgage lenders they all work to different timescales. That said, all being well, the lender will instruct a valuation.
When the lender has instructed a valuation on the property we’re getting really close! Providing it comes back ok and with no issues, then next stage is awaiting the formal mortgage offer to be produced. Once a mortgage offer is produced we do need to take payment from you – whilst we’ve worked for free up to this stage, we do need to make sure our team of advisors can out food on the table for their family!
This is the big one, and the one you have been waiting for… the lender has formally offered the mortgage to you!! We know it’s a big relief and that we are almost there, but there are still a few bits to tidy up and complete. The mortgage advisor will be in contact to let you know what these are.
Legally the transfer starts, the legal people do their bits (often in one day and both parties at the same time) in the background as you wait to hear, and once completed then 99.9% of the time the property is yours, with just a moving/key collection date to be agreed.
Exactly as it says – that’s it, you’re in and the property is yours!
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is £650.