Mortgage Process

The Mortgage Process at MM MortgagesArranging your mortgage with MM Mortgages is simple:-

If you haven’t arranged a mortgage for a long time, or at all, here’s an explanation of the process…

A lot of the work a broker does is done before you even apply for a mortgage. It’s important the broker gathers enough information from you to determine:-

  1. What it is you would like to do e.g. buy a property, remortgage a property etc.
  2. What type of mortgage, deal and any features you would like your mortgage to have
  3. If you can afford to borrow the amount you want or need
  4. If you’re likely to be accepted for the chosen mortgage

Once the above have been determined the broker can apply to the chosen lender for what’s called an agreement in principle (AIP) or decision in principle (DIP) they both mean the same thing but we’ll use DIP from now on. This is when the broker provides the information they have gathered from you to the lender who then checks that it meets their criteria to lend; this also includes checking the credit history of all borrowers to see if they are likely to repay the mortgage.

Assuming the borrowers pass the DIP process then it’s on to the full application, this is where the broker fills in the remaining information for the lender so that when the following steps are completed satisfactorily they’ll be ready to go to offer.

As part of the full application process the broker will ask you for documents to verify the information you have given them, for example they may need proof of your identification and address. They may also require proof of your income such as payslips, bank statements or accounts if you’re self-employed.

The lender may also instruct a surveyor to inspect the property you wish to mortgage. Depending on the type of survey you choose will determine how thorough the survey is. A basic survey (called a mortgage valuation) checks the value of the property and that it meets the chosen lenders criteria e.g. has an allowable number of bedrooms/bathrooms/kitchens amongst other things. If you opt for a mortgage valuation you may not even receive a copy of the surveyors report as this is usually prepared solely for the lenders’ use.

Assuming the lender is happy with the information in the mortgage application, the documents they have requested and the surveyors report they will then provide a mortgage offer. This is the formal document offering a mortgage to the borrower(s).

Your solicitor will also receive a copy of the mortgage offer. Providing you’re happy with everything in the mortgage offer and any other conditions it’ll then all be down to your solicitor to ensure all the conditions in the offer are complied with and request the money from the lender to send to the solicitor of the person you’re buying from, or to send it to your old lender if you’re remortgaging. The mortgage starts on completion day and then you’re done until next time.

Often between your mortgage offer being produced and the solicitor completing the mortgage your broker will help arrange any insurance policies that you may need. Your broker will often liaise between all parties for you so you only have one point of contact for all your needs rather than doing it all yourself.

Just any one of the following and we will do the rest;

Time for a chat? Call us, or get us to call you at a time of your choice! Details are shown to the right.

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