THE GUIDE TO MORTGAGE PROCESS

BY ENNESS

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WHAT IS A MORTGAGE?

A “mortgage” is a loan secured against a property. A bank will lend you money to purchase or remortgage that property but will secure their loan to you by way of a legal charge against the property.

DO I REALLY NEED A MORTGAGE?

Most people will typically need a mortgage when purchasing a new home. This means that the property buying, mortgage and legal processes all need to run alongside each other to ensure a timely completion and prevent the property being lost.

HOW DO I GET A MORTGAGE?

We’ve put together the helpful guide below so you can
visualise all the steps in your property buying journey
from start to finish. So, please have a read of our
Mortgage Process Guide… If you have any questions or
queries about the content feel free to get in touch with
one of the Enness team – we are here to help.

YOUR HOME BUYING JOURNEY

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STEP 1

FIND OUT HOW MUCH YOU CAN BORROW

Before starting your property search, it’s important to approach a mortgage broker to discuss your borrowing options. When you have an idea of how much you can borrow, you can plan your search accordingly.

Beginning your search without this knowledge is a common issue – there’s no point looking at a property which is way out of your affordability. Plus, it puts you in a favourable position with the seller if you have a mortgage in principle in place on making an offer.

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TIPS

BROKER VALUE

You would have an initial consultation with one of our brokers, completely obligation free, to research how much would be available to you, and the best products and rates for your unique circumstances.While cash is the main consideration for most vendors it’s not the only one.

While cash is the main consideration for most vendors it’s not the only one. Speed of completion, buyer’s financial position and experience are also prime factors - this is where we help.

We deal with every lender or bank in the market and our unrivalled relationships generate an exceptional speed of service. We’re also happy to liaise with estate agents on your behalf. Many of our lenders are not available to new clients of a bank, to individuals directly, and in some cases, even other brokers.

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STEP 2

START YOUR PROPERTY SEARCH

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STEP 3

FIND THE PERFECT PROPERTY

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STEP 4

OUR MORTGAGE RECOMMENDATION

Based on your circumstances we’ll make a formal mortgage recommendation to you.

AGREEMENT IN PRINCIPLE
We’ll then secure you an Agreement in Principle (AIP). This is a document stating how much the bank will lend given the information they are provided, which can then be used to strengthen your position as a buyer. It’ is a conditional document, subject to all further documentation that the bank subsequently would need as proof.

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TIPS

CHOOSE A CONVEYANCER

BROKER VALUE

You will receive unbiased and honest advice from one of our expert team based on your circumstances. We are not driven by commissions so our recommendation will be based on the best solution for you.

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STEP 5

HAVE YOUR OFFER ACCEPTED!

APPLICATION

The application form is a standard requirement by any bank when applying for mortgage finance. Typically, we’ll submit your mortgage application for you, but if you’re borrowing a large amount you may need to visit the lender or bank with us. You will need to provide documents to support your application – including your passport, proof of income and proof of deposit.

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TIPS

LET YOUR CONVEYANCER KNOW AND RECEIVE HIS FULL QUOTE

BROKER VALUE

We will complete and compile the application on your behalf and present it to the lender in the best possible way. We will also accompany you to any meetings and liaise with other interested parties.

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STEP 6

UNDERWRITING

The bank will provide a list of documentation which would include bank statements, proof of funds, list of assets, copy of passport, credit reports, employment verifications etc. The bank then goes over the documentation and request further information if required.

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TIPS

INSTRUCT YOUR CONVEYANCER TO START THE REQUIRED SEARCHES AND ENQUIRIES

BROKER VALUE

We will let you know what documents will be required in the very early stages to give you time to gather these. We often work directly with underwriters who ultimately make the decisions. We would negotiate on your behalf to encourage them to take a more holistic view when a client isn’t a perfect fit at first glance.

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STEP 7

THINK ABOUT A MORE DETAILED SURVEY

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STEP 8

PROPERTY VALUATION

Once the lender has assessed your application (called ‘underwriting’) they will also require access to the property you are intending to purchase. Lenders will require a ‘basic valuation’, which is purely for their purposes.

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TIPS

IT'S IMPORTANT YOU LIAISE REGULARLY TO AVOID DELAYS

BROKER VALUE

Our advisers can guide you through the options and reports available to you.

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STEP 9

START PACKING...

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STEP 10

MORTGAGE OFFER

This is the final document which confirms the exact terms your mortgage is being offered to you on. It’s important you read it carefully but it means you now have access to the funds to finish buying your property!

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TIPS

EXCHANGE OF CONTRACTS (YOU'RE NOW LEGALLY LIABLE TO FINISH BUYING THE PROPERTY)

BROKER VALUE

A common misconception is the broker’s work ending with the mortgage agreement. However, a broker adds significant value supporting you until completion; liaising with solicitors and estate agents to make sure it goes through smoothly.

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STEP 11

COMPLETION - CONGRATULATIONS, YOU OWN YOUR NEW PROPERTY!

Your conveyancer will request the funds from your lender and send them, along with your deposit, to the vendor's solicitor. Once received, the property is yours!

We'll make sure the payments are in order and let you know about remortgaging when this is relevant.

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