Guide to the Mortgage Process

So, the time has finally arrived; you have a deposit, you’ve got your finances in order, and you’ve applied for a mortgage for that perfect home – but what happens next?

For those that are new to house-buying, the mortgage application process can seem like a daunting task. Here, we’ll take you through the main points as to what to expect when applying for a mortgage.

Checking affordability

As a mortgage broker, in order to advise you on the most suitable mortgage deals available at the time – it’s important for us to understand our clients’ individual financial circumstances and limits. While most people will look to borrow the highest amount they can, it’s important for us to find the ‘goldilocks’ zone, where the amount borrowed is correctly weighed up against what a client can reasonably afford – without having to overstretch themselves financially.

To figure this out, expect to provide various financial details of income and outgoings (utility bills, current rent, money spent on leisure activities and holidays etc.) It will also take into consideration any plans for the future that may affect finances; this will include taking into account the possibility of interest rates rising in the years to come.

Comparing what’s on offer

As mortgage advisors, it’s our job to do the legwork and ensure that our clients get the best possible mortgage that is suited to their own personal requirements. At The Mortgage Hub, we will undertake thorough research, assessing and comparing the most suitable deals available at the time of application for our clients, to ensure that their needs are met, and that any mortgage offered is going to be affordable – and not overstretch our clients.

Considering a mortgage offer

If and when a mortgage offer is accepted, the lender then provides a ‘binding offer’ and documents which entail the terms of the mortgage.

There’s then a set time period (which could be at least a week) where you the buyer has a chance to consider the offer and any potential implications of that offer.

Tallying up the costs

Unfortunately, there’s a fair amount of fees beyond simply purchasing a house. But at The Mortgage Hub, we will ensure that all fees and charges that are involved with house purchasing are fully explained and made clear before going ahead with any offer.

Valuation of property

Once we’ve helped our client secure a competitive mortgage deal that’s suitable and affordable for them, the chosen lender will then go about the valuation of the property. An independent surveyor will carry out a valuation to ensure the property’s worth, and to ensure it is priced correctly for the purpose of the mortgage.

At this stage, you the (potential) buyer can request (at your expense) fuller, more detailed surveys that will go far beyond value – taking into account any major defects or other potential worrisome problems that could be lurking within a property.

Offer and completion

Once the valuation has been completed, the lender will write to you, the buyer, and your solicitor with the mortgage offer. At this stage, before completion, there is an opportunity to go through everything to do with us and ensure it is all 100% ready to proceed with the purchase.

Once everything is signed and sealed, having received the Certificate of Title from your solicitor, the lender will release the funds for the property, which will in turn be passed on to the seller’s solicitor. Once this money is received, the purchase is complete!

With more than 25 years’ experience in the industry, and access to the entire mortgage market – from mortgage advice to insurance advice – we’re ideally placed to take you through the mortgage process and ensure that you get the best deal that’s tailored to your individual circumstances and needs.