Mortgage Process Archives - RatedAdviser.co.uk

What happens at a mortgage broker appointment?

You’ve finally identified and located your ideal home – now it’s time to start thinking money and the mortgage you will need to buy the property.

To secure the most professional, independent advice and information about the many competing mortgage products on the market, you might want to consult a mortgage broker. You have the first meeting lined up, so, what happens at a mortgage broker appointment and what questions are you likely to be asked?

About you

Identity

An article in the Telegraph newspaper on the 1st of April 2020 discussed potential flexibilities. Still, it reiterated that it is a requirement of the Financial Conduct Authority (FCA) for financial advisers – including mortgage brokers – to confirm the identity of their customers. This forms part of the finance industry’s collective efforts to curb the menace of money laundering.

When you go along to the first meeting with your mortgage broker, therefore, get this forma…

What is the role of a mortgage broker?

Whether you are searching for the first time or have had a mortgage before, you will know that the mortgage market offers a practically overwhelming choice of products. It is difficult to know where to start and to decide which mortgage is likely to most suit your particular needs, requirements, and circumstances.

It may be difficult making that choice, but it is essential to get it right. A mortgage is a long-term commitment and, if you get it wrong, you might be left with many years’ of grappling with an unsuitable product that is costing you considerable unnecessary expense.

Your mortgage broker to the rescue

The role of a mortgage broker is to help you avoid just these pitfalls. Their training, expertise and professionalism are marshalled with the sole aim of matching your particular requirements with the mortgage products available.

Why use a mortgage broker?

The immediate appeal of using a mortgage broker may be in their saving you …

Should I get pre-approved for a mortgage before house hunting?

Timing can be critical when you want to buy your home with the help of a mortgage. Sometimes, you might be wondering whether you are putting the cart before the horse – you can’t buy your house without a mortgage, but you can’t get a mortgage until a mortgage lender knows what house you plan to buy.

Naturally, your mortgage can only be advanced on a particular property you want to buy. But some would argue that if you have already started looking at homes you would like to buy, you have already left it too late to start the process of getting a mortgage.

Getting pre-approved for a mortgage before house hunting

One way of resolving that conundrum is to get pre-approved for a mortgage before house hunting. Pre-approval or a mortgage decision in principle does not bind you or the lender, since it is recognised that several steps still need to be gone through – not least, your finding the house you want to buy.

The agreement in principle – or “m…

What documents do I need to apply for a mortgage?

Let us look at what documents you will need to apply for a mortgage.

What you will need to provide will vary from lender to lender. However we will cover in this article thorough documentation that should be generic in nature and therefore satisfy most lenders and broker requirements.

Buy to let or residential?

The type of mortgage you are applying for whether that be a residential mortgage or a BTL mortgage, will determine in most cases what documents are needed. For BTLs most lenders use the estimated rent as the basis for lending so in these cases often no proof of income will be required. Whereas a residential mortgage is based on affordability and in all cases proof of earnings the lender will ask you to evidence

Identification Documents

The lender or broker will always ask for proof of your name. Typically two forms of ID will be required for this. Usually a passport or driving licence will be OK for name ID

Proof of address i…