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Mortgage steps checklist and faqs

What to anticipate, plan for, and be aware of during the mortgage process: such as understanding interest rates, gathering necessary documentation etc.

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The key steps you'll need to go through when buying a new home

The following checklist provides a comprehensive guide to the key steps you'll need to go through when buying a new home. From initial research and budgeting to securing a mortgage and finalising the purchase, this list covers everything you need to ensure a smooth and successful home-buying experience. We also answer common questions in our FAQs - both combining to hopefully help you and to be prepared.

Key steps of the buying process

The following checklist provides a comprehensive guide to the key steps you'll need to go through when buying a new home. From initial research and budgeting to securing a mortgage and finalising the purchase, this list covers everything you need to ensure a smooth and successful home-buying experience.

  1. Before you begin your property search, contact us so that we can provide you with your borrowing capacity, an indication of your likely future monthly payments and of course your purchase limit. At this stage, you may also require an Agreement in Principle (AIP) for the estate agent so that you can evidence your financial position which we will happily provide you with.
  2. Find a property and make a formal offer ‘subject to contract’.  You can contact us at this stage if you need support and guidance with the negotiation of your purchase.
  3. Instruct a solicitor. We can help you select a firm if you need help with this.
  4. Carry out the mortgage application. We’ll request supporting documents such as payslips and bank statements and provide you with the market leading options from the whole mortgage market.  Once we’ve decided on the most appropriate product for your needs, we’ll carry out the mortgage application on your behalf and keep you informed of progress throughout the process.
  5. Mortgage underwriting and property valuation.  The mortgage lender will carry out an assessment of your supporting documents and value the property independently to ensure it offers enough security against the loan.  Please note that this inspection is for the lender’s purposes and shouldn’t be confused with a home survey.
  6. Home survey.  It’s usually sensible to carry out your own survey of the property, either with a ‘homebuyer’s report’ or the more comprehensive ‘building’s survey’.  Please contact us at this stage if you need our guidance.
  7. Mortgage offer.  Once the underwriting is complete and your mortgage has been approved, the lender will issue you with a mortgage offer. This will provide you with details about the mortgage and the conditions of the contract.  We will carry out a check of all the details and contact you to inform you that we are happy with all the information.  This is a good opportunity for you to make sure you are happy with all the details of the mortgage and the financial commitment you will be undertaking.  At this stage, you can contact your solicitor to make sure that all the searches are being carried out and that a contract is being drawn up for you to sign.
  8. Exchange contracts – this is a process that will commit you to buying and the vendor to selling the property. You’ll now agree with your solicitor the completion date, i.e. the date on which you move into your new home. At this stage we will ensure that your life insurance is in place, that you have started your building insurance.
  9. Organise payment of your deposit with your solicitor.  Please ensure you contact your solicitor from the number on their website to avoid scam emails informing you of incorrect bank details.  If in doubt, send £1 and call to confirm receipt first.
  10. Completion day, this is the day that you’ll take full ownership of the property.  Your solicitor will receive funds from the mortgage lender and pass on the amount required for your purchase to the seller’s solicitor.  Your solicitor will confirm when this has happened, and you can now contact the seller’s estate agent to arrange collection of the keys and move in! Your contents insurance should now be in place.
  11. Your mortgage lender will contact you with a schedule of your mortgage payments.  Please note that the first payment may be larger than the ongoing payment.
  12. We will diarise a date to recontact you several months prior to your mortgage deal ending so that you don’t move to the lender’s standard variable rate.  

 

Mortgage FAQs

Navigating the complexities of mortgages can be daunting, whether you're a first-time homebuyer or looking to refinance your existing loan. To help you make well-informed decisions, we've compiled a comprehensive list of frequently asked mortgage questions.

  • There are various types of mortgages available, including fixed rates, tracker rates, discount rates, variable rates, and offset mortgages. The best type of product for you depends on your financial situation, risk tolerance, and plans.  Our advisors will help you decide which type of product is best suited to your needs and situation.

  • Lenders assess your borrowing capacity based on factors such as your income, expenses, dependents, credit history, and existing debts. They typically use a multiple of your annual income to determine the maximum loan amount.  Please contact us to find out your borrowing capacity.

  • The deposit required varies depending on the lender and the type of mortgage. Generally, a larger deposit results in a lower mortgage rate, but some lenders offer mortgages with as little as 5% deposit.  We recommend trying to save for at least a 10% deposit.  Don’t forget that you’ll also need funds to cover other expenses such as legal and stamp duty.  Our advisors will help guide you with your deposit.

  • Interest rates can be fixed, variable, or tracker. Fixed rate mortgages offer stability with a set interest rate for a certain period. Variable rate mortgages (including discount rates) will fluctuate based on the lender's standard variable rate (SVR), and tracker mortgages follow the Bank of England's base rate.

  • Mortgage fees can include arrangement fees, valuation fees, legal fees.  The arrangement fee can often be added to the mortgage and many deals provide a free valuation.  There are also likely to be early repayment charges if you repay the mortgage early. It's essential to consider all these costs when comparing mortgage deals which is why we’ll carry out a cost analysis of all products before we recommend one to you.

  • Mortgage terms typically range from 25 to 35 years, but shorter or longer terms may be available. Shorter terms result in higher monthly payments but lower overall interest costs, while longer terms offer lower monthly payments, but higher total interest paid.  Typically, lenders will restrict the term to a maximum age of 70, although there are some circumstances that allow customers to take a mortgage beyond this age.  We’ll help you set the best term for your budget.

  • Missing mortgage payments can have serious consequences, including damage to your credit score and if sustained over a long period can lead to the repossession of your home. It's crucial to communicate with your lender if you're struggling to make payments to explore options such as payment holidays or restructuring the loan.

  • Almost all residential mortgages allow you to make overpayments, which can help you pay off your mortgage faster and reduce the total interest paid. However, some lenders may impose limits or early repayment charges, so it's essential to check the terms of your mortgage.  Typically, lenders allow you to overpay by up to 10% of the mortgage balance each year, but you if you require more than this, we can help you find a product that allows 20% or even unlimited overpayment amounts.

  • You will be able to book a new product up to 6 months prior to your new deal ending. This can either be with your existing lender, known as a product transfer, or with a new lender, known as a remortgage.  As we have unlimited access, we will review all your options and provide you with the best deal based on your latest situation the requirements.  At this stage you may want to release fund for home improvements, consolidation of other debt or perhaps to purchase a new car.

  • Most mortgages are portable, meaning you can transfer them to a new property if you move. However, this is subject to the lender's approval and may involve additional fees.  We will always confirm if the mortgage is portable when we carry out the advice.

  • At the end of the mortgage term, you'll need to repay the remaining balance. This is typically done by selling the property or paying off the outstanding debt.

How can we help you?

We would be happy to help with any services you may require. From mortgages to financial services, our team has the experience to deliver. Please call us on 01892 517171 to discuss your needs or complete the form below and we will be in contact shortly.

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