Helping You Become A Homeowner – Your 1st Step on The Property Ladder
Mortgages For First Time Buyers – Can I Get A Mortgage?
The following is a list of suggested questions you should ask an adviser:
• What are the lenders’ rates and any other associated costs, such as reservation fee, product fee and broker fee (if applicable)?
• Can associated costs be included in the mortgage loan or are they payable upfront?
• What does the lender charge for survey / valuations?
• What is the lender’s revert rate once the initial deal term is finished and how will this affect monthly payments?
• Are there any charges for early repayment of the mortgage?
• Is there an arrangement fee to pay and if so will I get this back if my application does not proceed?
• Is the mortgage portable to another property if I decide to move?
• Am I allowed to make partial repayments of capital or increase my monthly repayments if I wish to repay the mortgage early?
• Are there any other conditions attached to the mortgage? Will I have to buy insurance from that lender?
• Do you provide advice on mortgage products from the whole market or just a selection of lenders?
Buying your first property can be a daunting prospect. There is such a wide choice of lenders and types of mortgage schemes for first time buyers.
Going to one place to get expert advice and access to the whole marketplace will save you money, save you time and simplify the home buying process.
For free, whole of market mortgage advice for the first time buyer, call us now on 020 8802 9030 Monday to Sunday 8am to 8pm
The Mortgage Process
Initial Meeting/Agreement or Decision in Principle
At an initial meeting we will give you an Initial Disclosure Document that will confirm our status as a firm regulated by the Financial Conduct Authority to give mortgage advice. You will provide us with all your financial and personal information that will enable us to recommend the most appropriate mortgage to meet your individual requirements. You will not need to bring any documentary evidence with you at this stage. At this meeting we will tell you about the different types of mortgage available, how much you can borrow, what are the monthly costs both now and in the future. You will also be informed of the period you are tied to the lender and any penalties for breaking those ties.
You will also be given a breakdown of all the costs associated with obtaining a mortgage.
We will give you a Key Facts illustration for any mortgage that is recommended.
If you are happy to take it to the next stage, it is a very good idea at this first meeting to then obtain from the lender an Agreement in Principle, AIP or a Decision in Principle, DIP to determine whether the lender is happy to lend and give you the amount of loan you are seeking. You will then have the confidence to go and find your new home and be able to prove to any doubting estate agent that you already have the mortgage agreed in principle. This is especially important where you are competing with others for the same property.
Second Meeting/Full Mortgage Application
Having made an offer and had it accepted you are now in a position to arrange the mortgage. We will then convert the AIP or DIP into a full application before sending to the lender. You will need to provide at this meeting some or all of the following documents; last 3 months payslips and P60 or 3 years accounts if self employed; 3 month personal bank statements; proof of identity usually a passport or driving license; proof of current address, usually a utility bill or bank/credit card statement; proof of deposit; and also a credit/debit card to pay for the valuation and any other up front fee required by the lender.
We will then send the mortgage application either electronically or as a paper application. When it is received by the lender it will be loaded on to their computer systems, given a reference number and then be appraised by an underwriter. If they are happy with the application they will issue instructions to their valuer to value/survey the property. If they require additional information they will ask us to obtain this from you.
When the lender has received the valuation and they have all the documents from you that they need, they will produce a mortgage offer detailing the terms and conditions under which they are prepared to lend. A copy of this offer will be sent to you, ourselves and your solicitor who will be doing all the legal work associated with the purchase of the property. Once all the legal work has been carried out you will be in a position to exchange contracts.
It is advisable to find a good solicitor whilst you are looking for a property so that you are in a position to give the estate agent their name once your offer is accepted. The solicitor should give you a breakdown of their costs and if you contact more than one you can compare their charges. London Mortgage Advice will be happy to suggest some names of experienced solicitors at your request.
Exchange of contracts and Completion
You will be asked to pay your deposit on exchange of contract and this will usually be 10% of the purchase price unless you are only putting down 5% or indeed no deposit at all e.g. 100% loan. At present there are no 100% mortgages. A completion date will follow when you have the legal right to access to your new home. If you are part of a chain involving a number of properties, the completion date will be one that you will all have to agree on.
For free, whole of market mortgage advice, call us now on 020 8802 9030