5 Steps to a Mortgage

All lenders will ask you to do an affordability assessment. They will ask you to go through your income and outgoings, that way they have a better understanding of your financial situation and if you are suitable for a mortgage loan. 

Within your assessment, they will ask questions relating to child maintenance, second jobs, bonuses and your outgoings, including credit cards, loans, bills, living costs etc. Everyone applying for a mortgage will need to provide the above details. If you meet all the affordability requirements by the lender, you are now able to get a Decision in Principle.

Before a lender makes an official mortgage offer they will need to verify the property you wish to purchase is not worth less than the cost of your mortgage loan. A Basic Valuation Report will be carried out to confirm the value.

Once all the documentation has been verified, and the valuation report corresponds with the asking price, your mortgage lender will make you a formal Mortgage Offer. You have now applied for a mortgage and received an offer - you can progress with the purchase of your new home.

If you don't stumble across any issues or delays, you should receive the paperwork to complete the sale. Before signing the contract, you'll go through it with your solicitor to check that all the details are correct. Once you’ve exchanged contracts, the seller will receive your deposit. You’ll need buildings insurance in place to cover the property at this stage.

If you’re buying a new property and not remortgaging, this is when your solicitor will send the Certificate of Title, and the funds are released. They will then pass those funds onto the seller’s solicitor. Once the seller has received the money, the house purchase is complete. You now have the keys to your new home.