The Mortgage Process

A Combined Initial Disclosure Document

Document from Mortgage Adviser which should be provided before any personalised advice or information is given. Details the level of service being offered by the adviser and includes :

• the amount of any fee payable, when it is to be paid and any refund terms;
• an explanation of the type of service to be given and the range of product providers to be used;
• the protection offered to customers and their right to complain.

Fact Finding

Getting all your personal and financial details .( See Enquiry Form) It is the Mortgage Broker's job to find mortgages for as many people as possible and that includes anyone with any past credit history problems / difficulties. This can only be done if adequate information is collected.

Acceptance in Principle

Lenders will perform a free credit and affordability check based on some of your basic details ( earnings / employment history etc ) to give you an indication of the mortgage decision they might make.

Key Features Illustration

Basically a 'quotation' which must be provided to all borrowers at product recommendation stage i.e. before completing any mortgage application. Details the mortgage product and states exactly

• The rate of interest to be charged .
• How much the borrower will repay.
• 'Any fees and charges that apply.

A 'Suitability' Letter

From the adviser outlining the reasons for recommending the particular lender, the product type, repayment period, scheme period, loan term, plus any special features. This letter will also summarise the customer's circumstances and demands and preferences and how the recommended product meets the borrower's needs. It will also confirm that the borrower can afford the product.

Mortgage Application Form

This must be completed and can be posted or submitted online to the Lender. Lenders' application forms include authorities to enable them to refer to credit reference agencies (Such as Experian or Equifax) and fraud prevention agencies. Lenders in common with solicitors and insurance companies routinely ask applicants for proof of identity and address to prevent Money Laundering. For proof of identity typically they will ask for certified copies of passport or driver's licence , and for proof of address they can accept a utility bill or bank statement (no more than 3 months old).

Valuation/Survey

Hopefully there will be few surprises.

Offer letter from Lender

Your Lender states how much they are prepared to lend on your property and on what terms.

Exchange of Contracts

The date at which you agree to exchange contracts to commit to buying a property. Once contracts have been exchanged, you are legally obliged to buy the property. After exchange, a date for the completion of the property purchase can be set.

Completion

This is the last stage in the purchase of a property. The legal documentation is finalised and the lender has sent the mortgage funds to the purchaser's solicitor. Once the purchaser's solicitor forwards the funds to the seller's solicitor the property is now owned by the Purchaser