The Mortgage Process
From your first Decision in Principle through to completion, here's what happens at each stage of arranging your mortgage.
1
Decision in Principle
- Your basic information is entered into the lender's system and your credit records are searched.
- The lender confirms how much you can borrow and provides an Agreement in Principle certificate.
2
Offer Accepted
- Once your offer is accepted, the estate agent should take the property off the market.
- A Memorandum of Sale is issued to you, the seller and both solicitors, confirming the offer.
- Legal work commences.
3
Full Mortgage Application
- Your mortgage application is submitted to the lender.
- The lender requires documents to confirm what was submitted at Agreement in Principle.
- Initial fees, such as valuation and booking fees, become payable.
4
Valuation & Underwriting
- The lender checks your documentation, expenditure, employment history and source of deposit funds.
- A surveyor is instructed by the lender to inspect the property.
5
Formal Mortgage Offer
- The lender confirms its agreement to lend in writing: the Formal Mortgage Offer.
- This is sent to you and your solicitor, and is typically valid for 3 or 6 months.
6
Exchange & Completion
- With checks and searches complete, your solicitor exchanges contracts to purchase the property.
- A 10% deposit is payable, and life cover and buildings insurance should commence.
- On completion day, the remaining funds transfer to the seller's solicitor, ownership transfers to you, and your mortgage starts.
This is for information purposes only.
Your mortgage is secured on your home, your home may be repossessed if you don't keep up payments on your mortgage.