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How To Get A Mortgage

Whether you are a First Time Buyer, Home Mover or need a more specialist service – the mortgage process is pretty similar. The mortgage rates and products available are ALWAYS changing. Therefore, your first step should ALWAYS be to seek the advice of a mortgage broker. Here’s what you need to be best prepared for the mortgage process.

what happens first?

First, contact a mortgage adviser to book in your initial appointment. If you come prepared, you will be able to find out your mortgage options. When applying for a mortgage, the initial appointment is referred to as a ‘fact find’. We will ask questions about your expenditure, income and lifestyle. As well as other information about your future plans, which could impact your financial situation. The mortgage advice we give is based on the information provided. It is essential that you are open about your current situation. There are so many ways mortgage brokers can get around any financial barriers. Providing they are declared at this point. We will also discuss your solicitor options needed for the mortgage process.

what paperwork do i need?

All mortgage applicants will require the following documents:

  • Photo Verification
  • Proof of address
  • Proof of deposit
  • 3 months bank statements for all current accounts

There are some differences with the evidence you will need to provide mortgage lenders based on your employment status. Employed buyers will need 3 months worth or payslips. Self-employed buyer’s will need 2 years SA302’s and tax year overviews. If you are a director of a limited company you will need 2 years full accounts for mortgage applications.

is my credit score important when applying for a mortgage?

YES! However, your credit score isn’t the whole picture. Mortgages are based on your, income, expenditure and your credit profile. We have access to mortgage lenders who will take all credit profiles into account. It is however crucial that you get your credit profile in the best shape possible. This will give you more options when applying for your mortgage.

We use check my file for our credit scoring. Here is the link to check yours: https://www.checkmyfile.com

What happens after the initial mortgage appointment?

When all of the correct documents have been provided, we will carry out a credit score also known as an ‘Agreement in Principle’(AIP). It is a quick process, and if accepted you will be issued an AIP Certificate. This document allows you to make offers on properties that you are interested in purchasing. If the AIP is unsuccessful, we will come back to you and discuss your options on how to proceed. Once a successful offer has been made, the property can be taken off the market with this document and your solicitor details.

How do I chose my mortgage product?

At this point, an advisor will support you in choosing a mortgage product. You should chose a mortgage that aligns with your current situation, as well as your future goals and plans. The appointment is referred to as a ‘sign up’. Once this has been decided, we will submit the final information to the chosen lender. This includes: the property information, property valuation and solicitor details. Next, the lender will instruct a survey. Your case will be given a number and will be assessed by an underwriter. Once the underwriter is satisfied they will issue a mortgage offer.

Can my mortgage application be refused?

If your mortgage is refused it will come down to either your income, finances or if you are unhappy with the valuation. All lenders are different. They have different criteria to meet and will assess each case individually:

  • The lender may decide part of your income is not suitable for your affordability and refuse to use it towards your mortgage. This is generally when including payments such as overtime or bonus payments. 
  • Your employment contract is not suitable for the lender’s specific criteria
  • If you are self employed, the lender must be satisfied that your business is profitable
  • The lender may take any self employed grants that you have taken.

The lender must be satisfied that you are in good control of your finances. Subsequently, our bank statements provide evidence of how you run your accounts. 

You must disclose all credit agreements in a mortgage application. Including loans, credit cards, lease agreements and any ‘buy now pay later’ loans. They will ask questions about any regular outgoings and/or gamble frequently. Your outgoing payments directly affect your affordability, in turn impacting the amount that you are able to borrow. Ultimately, the lender must be satisfied that the mortgage they are providing is affordable. 

https://clementsfinancial.co.uk/free-home-buyers-guide/

This FREE Downloadable drive is perfect for any home buyer, it has all the information you need about the mortgage process. As well as interact pages to support you from before you start the process right up until moving day.
Here's what you need to be best prepared when applying for your mortgage. Clements Financial Mortgage adviser giving mortgage advice on the mortgage process.