PURCHASE MORTGAGES

Getting a mortgage may seem easy on the face of it, but with so many options available, a wide range of lenders to choose from, varying criteria and lending requirements based on the different lenders then the best way to obtain the right mortgage for your circumstances would be to employ a qualified mortgage broker.

The broker will have in-depth knowledge of the lender rates, criteria, and affordability calculations and will be able to advise you on the right mortgage for your needs.

The mortgage process can seem complicated but with the aid of a good mortgage broker everything should be taken care of seamlessly:

Step 1

A lender or mortgage broker will need to assess your current financial position to identify how much you can borrow.

Step 2

Once it has been established how much you can borrow, the lender or mortgage broker will apply for a Decision in Principle. This will include a credit score being conducted by the lender, and assuming that they are happy they will provide confirmation that ‘in principle’ they agree to lend the amount applied for.

This is not the same as a mortgage offer and on represents an informal agreement based on the limited information presented at this stage.

Step 3

Once you have found a suitable property it is time for the lender or broker to present their mortgage recommendations and submit the mortgage application. The recommendation will be based on your current circumstances and what is best for you in the short, medium and long term, and based on the discussions that you have had with your advisor.

Step 4

The mortgage application – this is that stage that ALL necessary information is disclosed to the lender, and all applicable evidence is provided by the applicant – pay slips, bank statements, current debt position, any commitments e.g. childcare, property information, address history, and adverse credit.

The lender will then take this information and fully assess it, or underwrite it, as well as performing a full, in-depth credit search on the applicant/s. The lender will also request for a valuation to be conducted on the property to ensure that it meets their criteria and is suitable for mortgage purposes.

This may be quick or take additional time if the lender has additional queries.

Step 5

Once the lender has completed all their necessary checks and fully underwritten the application they will then produce a mortgage offer**. This is a binding agreement that the lender will lend the money when requested by your solicitor.

**A mortgage offer is based on all the information remaining the same up to completing the mortgage, so some lenders will conduct a further credit search to ensure no additional borrowing has taken place in between offer and completion, and also if anything changes with income etc… then the offer can be withdrawn.

Step 6

Completion, this is the point where your solicitor has completed all of their necessary searches and had all enquiries answered by the vendors solicitors, or developers, solicitors and request the funds from the lender, to complete the mortgage. Once the funds have been paid to the vendor’s solicitors the purchase is complete and the property is yours!

That is an extremely common question that we get asked.

How much you can borrow depends on a number of variables ranging from how much you earn, what debts you have in place that will continue, your family circumstances, your age, and your credit profile.

The best thing is to speak to a qualified mortgage broker who will be able to review your current financial position and then research the market to find out what the maximum affordability is for your unique financial position.

A mortgage will normally be agreed upon by the lender based on what they call ‘affordability’.

In essence, this means that a mortgage will be granted based on how much you’re looking to borrow, your current financial position, and how much you earn.

Most people will generally use roughly 25% of their net income to cover their mortgage payments, but there is a huge number of variables that makes this impossible answer as every mortgage is different and therefore it solely depends on what you can afford, what amount you borrow, how long you agree to pay the mortgage over, and the rate applicable to the mortgage.

To discuss what it may cost you, based on your mortgage requirements, then feel free to contact us.

In a word yes, there are a number of lenders that will accept applications from clients with previous poor credit histories.

The key is understanding what credit impairments you have had in the past, what these were for if they have been satisfied (or not), what your current financial position is and what your credit rating looks like now.

We have experienced brokers who are able to review your current financial position, review your credit profile and advise on the options available to you.

• Advising on maximum borrowing – Not all lenders will lend the same amount, there are a range of factors affecting how much you can borrow and a good mortgage broker will find the best lender to lend the amount you need
• Access to lenders and rates – Given the variety of rates and mortgage deals on the market a good mortgage broker will be able to find the best lender and the right deal for your specific circumstances. Some lenders also offer Broker Only rates which are often better priced than if you went direct to that lender.
• Understanding of lender ‘grey areas’ – All lenders have criteria written down, but well versed brokers know what lenders will look at certain cases and even go outside of their criteria to agree different scenarios.
• Managing the application process – A good mortgage brokerage will be able to manage the application fully, almost without involving you, from start to finish and in an ideal world just keep you informed of the progress to allow you to focus on what is important to you.
• Advising on, and arranging all necessary insurances – A mortgage is the biggest financial commitment you will ever take on. Given no-one knows what is around the corner, everyone is susceptible to illness or injury, and death is unfortunately a certainty at some point in our lives we ensure that you have access to the right insurances to cover the worst that life can throw at you.
• Overcoming obstacles – Some mortgage scenarios are trickier than others. A good broker will be able to navigate the questions and queries asked by lenders, and work with lenders to be able to overcome certain obstacles that may present themselves along the mortgage application journey.
• Liaising with all the necessary parties, and keeping you fully updated on all aspects of the mortgage and purchase process – Put simply, we take on as much of the leg work in getting you over the line with completion on your purchase or remortgage as possible, so taking as much of the stress away as possible.
• Assisting with completion when necessary, because not all completions are straightforward
• Ultimately a good broker should take the stress out of a large portion of the process, and find the very right deal for your unique circumstances so saving you time, money and hassle.
• Oh yes… there is also one other reason for using a mortgage broker in that they will find you the right deal in the market, that meets your specific circumstances, and will likely save you thousands of pounds over the course of each mortgage cycle. They are also there for ad hoc advice, supporting you when life changes occur.
• The key question I would pose to anyone not thinking of using a mortgage broker is:

If you needed to re-wire your house then you would almost certainly employ an electrician (or the vast majority of people would), so why when it comes to the biggest financial commitment of your life would you not employ someone to find you the right mortgage deal time and again AND, who would almost certainly save you considerably more money over your mortgage than they are likely to charge for their expertise and service?

You’d be mad not to, right?

A lifetime mortgage is a mortgage generally available to people aged over 55 years old.

The mortgage is taken out with no requirement to have to repay the original mortgage amount until they die.

They are generally taken out on an interest-only basis where the interest payments are made monthly. There are options to repay the mortgage amount should the person move/sell the property or decide that they wish to repay the mortgage on a normal repayment basis.

They work like any normal mortgage in that they are based on the income and financial position of the applicant and a normal mortgage application process is undertaken.

A mortgage in principle is an initial assessment completed by the lender where they look at the income position, debt position, lending amount, family position, and all other necessary income, including a hard or soft credit search, to be able to confirm ‘in principle’ that they would be happy to lend the applicant the money to purchase a home/property.

It is not a mortgage offer but gives a good indication of the ability to be able to apply for a mortgage and to be agreed to the mortgage assuming that all the information presented to the lender can be evidenced when a full mortgage application is submitted.

A mortgage is effectively a loan secured against your home. It is generally taken out over a longer period than an unsecured loan and it is also likely to have a lower rate.

It is the mechanism to raise the funds required to buy your home or to purchase additional properties if you are in the financial position to be able to borrow the funds.

Call us today and we will happily discuss all you need to know about what a mortgage is, how we can help you, and to help you understand what position you are in to be able to borrow what you need to purchase a property.