Independent & personal service
98% SUCCESS rate
Access to 1,000+ MORTGAGES
5 star reviews
  • Independent & personal service
  • 98% SUCCESS rate
  • Access to 1,000+ MORTGAGES
  • 5 star reviews

Knowledge

Frequently asked questions

No jargon. No waffle. Just straight answers to your mortgage questions.

  • What can a mortgage Broker do for me, and why should I use one?
    • Advising on maximum borrowing – Not all lenders will lend the same amount, there are a range of factors affecting how much you can borrow and a good mortgage broker will find the best lender to lend the amount you need
    • Access to lenders and rates – Given the variety of rates and mortgage deals on the market a good mortgage broker will be able to find the best lender and the best deal for your specific circumstances. Some lenders also offer Broker Only rates which are often better priced than if you went direct to that lender.
    • Understanding of lender ‘grey areas’ – All lenders have criteria written down, but well versed brokers know what lenders will look at certain cases and even go outside of their criteria to agree different scenarios.
    • Managing the application process – A good mortgage brokerage will be able to manage the application fully, almost without involving you, from start to finish and in an ideal world just keep you informed of the progress to allow you to focus on what is important to you.
    • Advising on, and arranging all necessary insurances – A mortgage is the biggest financial commitment you will ever take on. Given no-one knows what is around the corner, everyone is susceptible to illness or injury, and death is unfortunately a certainty at some point in our lives we ensure that you have access to the right insurances to cover the worst that life can throw at you.
    • Overcoming obstacles – Some mortgage scenarios are trickier than others. A good broker will be able to navigate the questions and queries asked by lenders, and work with lenders to be able to overcome certain obstacles that may present themselves along the mortgage application journey.
    • Liaising with all the necessary parties, and keeping you fully updated on all aspects of the mortgage and purchase process – Put simply, we take on as much of the leg work in getting you over the line with completion on your purchase or remortgage as possible, so taking as much of the stress away as possible.
    • Assisting with completion when necessary, because not all completions are straightforward
    • Ultimately a good broker should take the stress out of a large portion of the process, and find the very best deal for your unique circumstances so saving you time, money and hassle.
    • Oh yes… there is also one other reason for using a mortgage broker in that they will find you the best deal in the market, that meets your specific circumstances, and will likely save you thousands of pounds over the course of each mortgage cycle. They are also there for ad hoc advice, supporting you when life changes occur.
    • The key question I would pose to anyone not thinking of using a mortgage broker is:

    If you needed to re-wire your house then you would almost certainly employ an electrician (or the vast majority of people would), so why when it comes to the biggest financial commitment of your life would you not employ someone to find you the right mortgage deal time and again AND, who would almost certainly save you considerably more money over your mortgage than they are likely to charge for their expertise and service?

    You’d be mad not to, right?

  • How does the Buying Process work?

    Step 1 – Finding a property and agreeing on a purchase price

    So, you have reviewed your circumstances and know what you can afford, and you have found the perfect property. Once you have negotiated and agreed on the purchase price the estate agent/developer will issue all parties with a memorandum of sale which will include all the necessary information for you and the vendor. This is not a binding contract but confirms the agreed purchase price at this point.

    Step 2 – Mortgage application and instructing solicitors

    The next stage is to confirm that you have found a house and had your offer agreed to your mortgage broker/advisor. They will then provide the necessary recommendations as well as gather all the necessary information and evidence required to submit your mortgage application.

    At this point, you will also need to instruct a solicitor to open a file and start the preliminary checks to be able to act for you in your purchase.

    Step 3 – Gaining agreement for the mortgage.

    The mortgage application has been submitted and underwritten, all obstacles have been cleared and all additional queries have been satisfied for the lender to produce a mortgage offer.

    Step 4 – Solicitor searches and making enquiries

    Once the mortgage has been agreed and offered, your solicitor will start in earnest the rest of the work that they will have to do to ensure that the property you are buying is exactly what you are expecting. They may have completed some work, but without a mortgage offer, some solicitors will not want to do too much work as this will come at a cost if the mortgage isn’t offered and the purchase can’t complete.

    The solicitors will carry out all appropriate searches (ensuring the property is registered property, boundaries are accurate, no disputes currently in place etc…) and also liaise with the acting solicitor on the vendor’s side to have any ‘enquiries’ (queries) satisfied prior to confirm they are happy for you to proceed with the purchase.

    Step 5 – Managing the chain

    If the property purchase is part of a ‘chain’ i.e. other purchases and sales that run from the bottom of the ladder to the top of the ladder then your solicitor will need to liaise with the other solicitors within the chain to arrange an appropriate exchange date – when all contracts are signed and deposits are sent up the chain.

    Step 6 – Exchanging contracts

    Once the chain has been agreed and everyone is ready, the solicitors will agree on an ‘exchange’ date. This is the moment that you sign the formal paperwork to say that you will, in law, buy the property. It is also the time that you will provide the deposit funds to be sent to the vendors, this will usually be an agreed percentage of the purchase price. At the point that contracts are signed and the deposit money is sent you are legally obliged to complete on the purchase. If you decide to not go ahead with the purchase at this point then you effectively forfeit the deposit money that you have put down.

    Step 7 – Completion

    Once the contracts have been signed at the exchange the solicitors will agree to a completion date. At this point, they send the Certificate of Title to the lender providing your mortgage as proof that everything is now in place to complete. The lender sends the mortgage funds to your solicitor and your solicitor will send these funds to the vendor’s solicitor to complete the purchase!

  • How does the mortgage process work?

    The mortgage process can seem complicated but with the aid of a good mortgage broker everything should be taken care of seamlessly:

    Step 1

    A lender or mortgage broker will need to assess your current financial position to identify how much you can borrow.

    Step 2

    Once it has been established how much you can borrow, the lender or mortgage broker will apply for a Decision in Principle. This will include a credit score being conducted by the lender, and assuming that they are happy they will provide confirmation that ‘in principle’ they agree to lend the amount applied for.

    This is not the same as a mortgage offer and on represents an informal agreement based on the limited information presented at this stage.

    Step 3

    Once you have found a suitable property it is time for the lender or broker to present their mortgage recommendations and submit the mortgage application. The recommendation will be based on your current circumstances and what is best for you in the short, medium and long term, and based on the discussions that you have had with your advisor.

    Step 4

    The mortgage application – this is that stage that ALL necessary information is disclosed to the lender, and all applicable evidence is provided by the applicant – pay slips, bank statements, current debt position, any commitments e.g. childcare, property information, address history, and adverse credit.

    The lender will then take this information and fully assess it, or underwrite it, as well as performing a full, in-depth credit search on the applicant/s. The lender will also request for a valuation to be conducted on the property to ensure that it meets their criteria and is suitable for mortgage purposes.

    This may be quick or take additional time if the lender has additional queries.

    Step 5

    Once the lender has completed all their necessary checks and fully underwritten the application they will then produce a mortgage offer**. This is a binding agreement that the lender will lend the money when requested by your solicitor.

    **A mortgage offer is based on all the information remaining the same up to completing the mortgage, so some lenders will conduct a further credit search to ensure no additional borrowing has taken place in between offer and completion, and also if anything changes with income etc… then the offer can be withdrawn.

    Step 6

    Completion, this is the point where your solicitor has completed all of their necessary searches and had all enquiries answered by the vendors solicitors, or developers, solicitors and request the funds from the lender, to complete the mortgage. Once the funds have been paid to the vendor’s solicitors the purchase is complete and the property is yours!

To discover your options, call us today on 01242 696 235 or email hello@themortgagebranch.com