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THE HOME BUYING PROCESS APPLYING FOR YOUR MORTGAGE
If you are a first-time buyer or looking to move home, the mortgage application process can be stressful and time consuming. You have found the property you wish to buy, had your offer to buy formally accepted by the vendor and you are ready to start the mortgage application process.
WHAT HAPPENS NEXT
At this stage you need to formally submit a mortgage application to the most appropriate lender for you. The lender and type of mortgage is based on your specific criteria. The help of a qualified ‘whole of the market’ mortgage adviser can be vital. In fact, if you do things correctly, you will have already seen an adviser prior to viewing properties. This will help to determine the type of mortgage best suited to you and the amount you can borrow based on the deposit available. What must you provide to support your mortgage application?
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All mortgage advisers and lenders have strict guidelines that must be adhered to. These are set down by the Financial Conduct Authority. The documents needed are very much the same for all purchasers. Although there are some differences based on whether you are employed or self-employed.
1-Valid identity will be needed such as a passport and driving licence.
2-Proof of income - if employed lenders generally require a full 3 months’ payslips & latest P60. However, if there is other income being taken in to consideration such as a monthly bonus or overtime, they could require 6 months’ payslips. If self-employed they will require at least 2 years business accounts, 2 years
SA302’s and 2-year Tax overview forms. The accountant is normally a great help in providing these. Some lenders will also include income from certain benefits such as working tax, child tax and child benefit. If these are being used to fund the mortgage, then the tax award letters will be needed to evidence this income.
3-Between 3- and 6-months consecutive bank statements will be needed showing your name, address and any income.
4-Details of other credit commitments such as personal loans, credit card balances, student loans, child care costs, child maintenance payments and details of other financially dependent children or adults are needed.
5-Proof of deposit from your own resources is required with evidence of how the funds have built up or where they have come from. If the deposit is being gifted it must normally be a direct family member. Although, some lenders may be more flexible with this criteria. Valid identity and evidence of funds would be needed from the person providing the gift and some lenders may also need a signed gifted deposit letter. Level of Survey Required.
At application stage you will need to decide what level of survey will be required. All mortgage lenders will require at least the basic mortgage valuation, optional are a home buyers survey or a full structural engineers survey.
1, The mortgage valuation is for the benefit of the mortgage lender. It is designed to give enough information for the lender to decide whether the property is safe to lend on, and up to what amount. ... The valuation is based on the surveyor's knowledge of comparable prices in the locality. A valuation is just that – it won't
Peter is one of the panel experts for the Grand design Live TV show & is found in the 2019 vouched for guide to the UK’s top rated financial advisers
For further information please contact Peter Hunt on: 0121 503 0961
www.moneywatchfinance.com
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THE MIDLANDS PROPERT Y GUIDE MONE YWATCH F INANCE
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