Once you have had an initial consultation with a broker, you will be asked to complete a mortgage factfind document. Once this has been received, our brokers will be able to carry out their research on your behalf and make a recommendation to you.
Assuming you are happy with this recommendation and wish to apply, we will ask you to provide some documentation to verify what you have told us – this tends to be proof of ID and address, proof of income, 3 months bank statements and where appropriate, proof of deposit.
Once in possession of this, your broker will obtain an agreement in principle from the lender – this can usually be completed on the same day that we receive this documentation. Once this has been done, we will submit your mortgage application and the process moves on from there.
Whilst we are very happy to meet with our clients, this is not essential and we can instead work together via telephone/email and post.
A breakdown of the mortgage application process can be found below.
Stage 1: Talk to us
It usually takes around 2-4 weeks to get a formal mortgage offer. Using a mortgage broker can save you time and money. It will certainly take away some of the stress of applying for a mortgage. At Mortgages for Business we make the application for you and manage the process from start to finish. This can mostly be done over the phone, and via email and post but we are always happy to meet in person if you prefer.
Whether you’re looking to buy a new home or remortgage your existing one, talk to us about your circumstances and borrowing requirements. We will then search the market for you to find a selection of rates that suit your needs.
Stage 2: We give you a Key Facts Illustration
We will provide you with a Key Facts Illustration for any mortgage which interests you. Based on the information you give us, the KFI details the key features of the chosen mortgage and will include:
• Monthly mortgage payment amount
• Any fees you will have to pay
• Initial rate of the mortgage
• Type of mortgage (fixed or variable)
• Overall cost for comparison APR
• Reversion rate (the rate you pay when the term of the initial rate ends)
• Any Early Repayment Charges
• Special features of the mortgage including any restrictions
The KFI may look a bit long but it’s really important that you read it and understand what it says. If you have any questions just ask us for clarification. Remember, getting a mortgage is likely to be the biggest financial commitment you will ever make, so it is important you understand what is involved.
Stage 3: You choose a mortgage
When you have chosen a particular mortgage, we will try to get you a Decision in Principle (DIP) - also known as an Agreement in Principle (AIP) - from the lender which is an indication that the lender is prepared to lend you a mortgage based on what you’ve told them.
When you are ready to make a formal mortgage application, we’ll help you complete the form.
Stage 4: You give us all the necessary documents and information
Of course you are part of the process and you’ll need to provide certain documentation to accompany the application. All lenders will need to confirm your identity, where you live, your circumstances and borrowing requirements, so you will need to provide proof with some of the following:
• Identity - birth certificate, passport, driving licence, National Insurance number
• Where you live - current address (and any other address for the last three years). This can be done using a utility or council tax bill that is no more than three months old.
• Employment - employer details or your own details if you are self-employed
• Income - payslips, SA302, bank statements, statement of income and expenditure, details of your any financial assets
Stage 5: We help you complete the mortgage application form
In addition to completing the mortgage application form (we’ll help with this), you will also need to sign the form before we submit it to the lender.
Stage 6: We submit the mortgage application
These days most mortgage applications are submitted by us electronically using special systems set up by the lenders.
The lender will then carefully assess your application and carry out a number of checks including looking at your credit profile. Sometimes the lender requires more information and there can be a bit of to-ing and fro-ing before the lender makes a decision. The lender will also carry out a valuation of the property to ensure that it is suitable security.
Stage 7: The lender makes a decision
If the lender is satisfied with your full application it will issue you with a formal mortgage offer. You can then instruct your solicitor to commence the legal or conveyancing process. We will help you with this. We’ll also chivvy estate agents and other parties where necessary.
Stage 8: The funds are drawn down
Funds are released after all the legal work is completed. This usually takes around 6-12 weeks for the solicitor to carry out all the necessary paperwork, searches, transfer the deeds of property and register them. At Mortgages for Business we help with this part of the process too. In fact, we help until the entire transaction is completed and the loan has been drawn down.
Stage 9: We’ll contact you
Unless you’re looking to finance another property, you probably won’t hear from us for a while. However, shortly before you initial rate is due to expire we’ll get in touch to help you work out whether it is worth your while remortgaging or whether you’d be better off staying on the lender’s reversion rate. If you decide to remortgage, the process will start all over again…
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