Mortgage Process
The application for a mortgage is not something to be taken lightly. This writeup will tell you all you need to know about the key stages, timescales and options that need to be undergone before you submit an application for a mortgage.
First Step: Finding Out the Right Mortgage
We’ll help you find and arrange the right mortgage. We’ll manage the whole application process for you. We’ll walk you through the whole process from inception to completion. You can contact us to discuss further.
We have a mortgage quote system that will help you examine some of the products that are on the market.
With our mortgage quote system, you will get a results page that will let you know all the mortgages that are available to you. You can then arrange this and compare various mortgages taking care to select the one that is best for you. The mortgage cost over different periods and early repayment charges can be compared with a lender of your choice and even with your current mortgage if you want to undergo remortgaging
Second Step: How You Can Apply
We’ll complete all the application process on your behalf over the phone. We will select the right mortgage for you among all the ones available and we will walk you through the entire process.
Third Step: A Mortgage Consultant That is Dedicated to Serving You
You will have a dedicated consultant that will guide you through the entire application process and act as the point of contact.
Your application will then be submitted to the lender that you select for an agreement in principle. To carry this out, the lender will carry out a credit score or a credit search and an underwriter will vet your application. The booking fee and costs of valuation for the mortgage selected will be debited from your credit card after you have received the agreement in principal.
Your dedicated consultant will perform the entire packaging for the lender that you choose. This will help us retain control over the entire application process and keep you informed of any news.
You will receive a European Standardised Information Sheet (ESIS)/ Key Facts Illustration (KFI) and an Introduction Pack before you apply. This pack will also contain a request for any documentation that that the lender will need to complete the mortgage like P60s, passport, employment information etc. We must confirm to the lender that the originals of these have been seen by us. The lender usually allows us to make the confirmation for them so you can receive your originals back within some days as soon as the documents have been checked by us.
You will be kept informed on the progress of your application through phone or email.
Once the lender is fully satisfied that you have satisfied all the requirements of your application, a mortgage offer will be sent to you and the solicitor you appoint by post.
After this, your solicitor will be in charge of most of the process. Your dedicated consultant will gladly help you with any inquiry using their wealth of experience to help you complete your application successfully.
Remortgage
Why Should You Remortgage
People remortgage every few years to partake in the benefits offered by new rates on offer. Those that remain on the same deal for the entire duration of their loan might lose out on a lot of potential benefits and they could also miss the opportunity to decrease the total amount that they will pay back which could be considerably high.
When you remortgage, you switch your present mortgage to a new one that you arrange with a new lender or your current lender. Remortgaging will benefit you as a present homeowner for the following purposes:
Saving Money
If you are paying the Standard Variable Rate (SVR) of your lender, it is possible that your present lender will offer you greater flexibility and better rates in other products. This will allow you repay your mortgage quickly and give you a better rate.
If your present lender is not giving you much flexibility on other products or better rates, you can swap your mortgage to a new lender. You might pay early repayment charges to your present lender but you could still save a lot of money on the long run.
Remortgage - Why to do it?
Raising Money
An increase in the value of your property or higher income will mean that your mortgage can be increased to pay for expenses like college tuition costs for your children, weddings and other things. This way you won’t have to borrow money separately at a bigger expense.
To Avoid Moving Homes
Moving homes could be quite inconvenient. It could be more convenient and cheaper for you to attach an extension to your present home. This can be paid for by a new advance or remortgaging rather than changing homes.
Consolidation of Debts
Remortgaging will allow you free up some of the equity that you possess in your home and consolidate additional debts like credit cards or car loans that may attract interest rates higher than your mortgage.
You must think carefully before you secure debts against your home. If you don’t keep up with repayments on your mortgage, your home may be repossessed.
The Steps Involved for Remortgaging
Remortgaging is easier to do than buying a new home. This is because the property deeds are in your name already. If you want to change to a new deal with your lender, the process for doing so is simpler. If you switch to a new lender, you only need to take a few steps. These steps won’t involve a lot of work because we will help you oversee the whole process by liaising with solicitors, valuers and lenders on your behalf. The lender will then require a valuation to ensure that the value of your property is enough for them to lend on.
You will need to make an application to the lender the same way as when you are buying a new property. The lender will underwrite the application. The lender will then require evidence that the loan has been maintained till date. You will then be issued an offer. There will be conveyance work and a lot of lenders will only work with a firm of solicitors that has at least 2 partners. Local searches will be conducted during the conveyance process and a title and report will be sent to the new lender. The solicitor will make sure that when the new lender releases the mortgage funds, your previous lender is repaid. If you are borrowing extra funds, the solicitor will release all these to you on or after completion.
The Costs Involved in Remortgaging
Remortgaging is not as expensive as when buying a property in almost all cases because the charges below won’t be applicable or they will even be lower than when the mortgage was first purchased. The charges include:
Survey or Homebuyer’s report: if you did a full structural survey when you purchased the product, you might not need to do this again when you are remortgaging.
Legal fees: The solicitor might not charge as much as they would when you are buying the property. This is because the legal process for remortgaging is not as tasking as the legal process involved in buying a new home.
Stamp duty: You won’t need to pay stamp duty when you are remortgaging.
Other costs: There might be other costs but the new lender might meet all or some of the costs on a remortgaging deal.
Before going for a remortgage, you must calculate the early repayment charges that you will need to pay on your current deal and the way it decreases the potential savings that will be gained by remortgaging.
A lot of the remortgaging costs are similar to those that will be paid when a property is newly bought. The costs may include the following:
- Legal fees
- Sealing fee or discharge fees from old lenders
- Early repayment charges which may or may not be applicable
- Broker and booking fees
- Valuation fees
- Lender’s arrangement fees
- Higher lender charge which may or may not be applicable