The Mortgage Process
Why use a Mortgage Adviser?
When it comes to organising our finances, we naturally want to find the best deal on the market. Comparison sites have become a firm favourite in many households helping us to find the cheapest holidays, car insurance or even which mobile phone company provides the best data deals.
Whilst mortgage lenders can be found on these sites, it’s important to think about whether they’ll fully consider your personal circumstances or if they’re likely to recommended the generic and cheapest lender who may not actually be able to lend to you.
Some of the factors that could affect you being accepted for a mortgage are:
Credit history
Deposit size
Income status
Residential status
Length of time with employer
To name just a few…
A Mortgage Adviser will take the above (and much more) into consideration and as they’re qualified and regulated by the Financial Conduct Authority, you won’t be left second guessing which of the 50+ lenders on the market is right for you. A key thing comparison sites catch people out on is the overall costing of a product. We work out which is cheapest overall product inclusive of solicitors, fees, valuations and much more, as opposed to just finding the lowest interest rate (which is often not the cheapest).
Mortgage Advisers can not only save you the time of having to shop around but by matching you with the most suitable lender first time you could avoid multiple applications and damaging your credit score.
So now we have covered off some of the benefits of using a Mortgage Adviser, we have put together some information on the steps involved and a bit more of what you can expect!
The First Appointment
The first appointment with your Mortgage Adviser is all about them getting to know you. We often refer to this as a ‘fact find’ as the Adviser will want to find out more about you and your requirements before they can start their research. There is a lot to consider when it comes to taking out a mortgage, so we have listed a few points below to get you thinking:
What term do you want your mortgage over?
What is the most suitable mortgage scheme for you?
Do lenders charge fees and how would you want to pay them?
What buying schemes are available to you?
What do you need to consider when choosing your product term?
What is your budget for your mortgage and protection policies?
How critical is a good solicitor in the mortgage process and can your Adviser support with this?
Once your Adviser has established these points in your first appointment it’s down to them to begin their research. As mentioned earlier, we work with over 50 lenders, so your Mortgage Adviser’s expertise in sourcing to meet your needs and specific criteria is essential here!
The Second Appointment
Your Adviser will come back to you in your second appointment having completed their research to discuss your options with you.
Your Adviser will share with you the most suitable lender based on the information provided in your first appointment and will explain to you why you may not fit the criteria of certain lenders you’ve heard of.
This appointment will allow you to understand any offers your chosen lender may have at this time such as cash back deals, free valuations or solicitors’ costs covered.
Using an illustration document your Adviser will also cover off monthly payments, term and interest rates that are applicable, not only during your fixed term but also when that term ends.
During this time, your Adviser will also discuss mortgage insurance such as life, critical illness and income protection to make sure you can minimise the risk of your house being repossessed in the future should anything happen to you.
Not sure which insurances you may need? Check out our blog on insurances which goes into more detail!
The Third Appointment
It’s important to take time after your second appointment to reflect on the information given to you. Taking out a mortgage is a big commitment and your Adviser will want to give you time to absorb all the information and read through the documentation thoroughly. It’s worth noting down any questions you may have or any areas you need your Adviser to clarify and bring this to your third appointment.
To begin with, your Adviser will want to make sure that your circumstances have not changed before they can finalise the details of the mortgage you are applying for. During your appointment you will be asked to supply information about the house you are purchasing or re-mortgaging, such as:
Property tenure (freehold or leasehold).
Approximate year the property was built.
How many bedrooms, reception rooms, parking spaces and does the property have a garage?
At this point your Adviser will apply or arrange to apply for the insurance policies to fit your needs, also ensuring you have sufficient buildings and contents cover and gathering any documents needed for the lender to assess your application.
Post Offer
Your Adviser will see your mortgage process through to the very end, whether that be when you get the keys to your new home or your re-mortgage is complete. They will liaise with your solicitor to ensure key milestones are met as quickly as possible and keep you up to date on how things are progressing taking the stress away from you.
You won’t need to worry about remembering when your fixed rate is due to end as your Adviser will diarise to call you 6 months before your re-mortgage is due. It’s important to ensure you have enough time to find the most suitable deal and have all solicitor work complete to avoid moving onto a standard variable rate which could mean finding extra money for those monthly payments.
It’s also important to know that any insurance policies you have taken out should be live by the time you have exchanged on your purchase and not your completion date as you are liable for your property from when you exchange. Your Adviser will handle this for you meaning you will have one less thing to worry about!
Mortgage Advisers at CJ White Mortgages are not a one-off job. We look after you and your finances throughout your life, ensuring you are always well looked after and in the best position. We re-evaluate your situation every few years to ensure you’re on track for your life goals.
If you want to hear more about how we work with our clients, take a look at some of the reviews left on our Home Page.