Why get Mortgage Advice?
Prospect Mortgage Services provide independent, sound and honest advice for your mortgage and protection needs.
Buying a home may well be one of your biggest financial commitments and it can also seem one of the most daunting. To be able to navigate the mortgage maze you will probably require the services of a number of reliable professionals. With Prospect Mortgage Services not only do you have the backing of our highly experienced and skilled mortgage specialists but, should you wish it, you also have the optional support of recommended professionals.
How the process works
Obtain an Agreement/Decision in Principle
To make a formal offer on a property you will need a Decision in Principle/Mortgage in Principle. To get the ball rolling contact your Prospect mortgage broker. They will advise you about the best type of mortgage for you and arrange a ‘mortgage agreed in principle’. If you wish, you can start the journey here. A Decision in Principle is not a formal mortgage offer but will enable you to make an offer on a property when the right one comes up. If you don’t have a specific property in mind, register direct with several estate agents, to increase the chances of finding your ideal home.
Summary: you can arrange for a Decision in Principle by:
- Ideally, getting in touch and arranging to speak to an Adviser (in person, via video call or telephone)
- Via our website. Our powerful tools can help you start the journey at your own convenience. Check out our Decision in Principle page where you can get an indication of how much you might be able to borrow (Stage 1) and how much that might cost (Stage 2). Then, if you really want to know where you stand, Stage 3 of the journey will enable you to open a secure portal account to share more detailed information with us, via the Get Started button. This information will enable us to be able to share some advice with you along with personalised figures/arrangements related to your Decision in Principle.
Make a formal offer
Once you have a Decision in Principle and have found your ideal property, make a formal offer for the property with the estate agent. If the offer is accepted, the property will be classed as ‘Sold, Subject to Contract (SSTC)’.
Complete a mortgage application
Your Prospect Adviser will now help you complete an official application for a mortgage with the lender you have selected.
The Survey
The lender will ask an approved surveyor to conduct a ‘valuation report’ on the property. This survey is for the lender’s benefit rather than for you. You may want to consider organising an independent, more comprehensive survey, carried out to ensure that the property is in sound condition.
For more information regarding options related to your survey talk to your Adviser or click here
Appoint a solicitor
The solicitor you choose must be acceptable to your lender, as he or she will also act for them. The solicitor’s main task is to handle the conveyancing, which involves amongst other things drawing up contracts and ensuring that there are no building plans or restrictions affecting the property. Your Adviser can help you in choosing a suitable solicitor.
Examine the valuation report
The lender’s surveyor will put a value your new property. If the ‘Valuation Report’ matches or exceeds your agreed purchase price then it will likely mean your mortgage can move forward, as requested. Alternatively, it might add some conditions. For example – if the propoerty is valued lower than your purchase proce by the surveyor you may need to adjust the amount you can borrow. Alternatively, the surveyor might recommend that some specific repair works be carried out. In this situation, your solicitor might be able to request the seller to pay for the work. Alternatively, the estate agent might be able to renegotiate the asking price with the sellers accordingly. If not, and if you still wish to proceed, you may need to obtain quotes for the work and appoint a firm to complete these. The surveyor will usually carry out a further inspection to ensure that the work has been done.
Receive the mortgage offer
The lender will confirm their agreement to provide the loan in a formal “Mortgage Offer” to you.
Arrange Mortgage Protection and Buildings Insurance
Your Prospect Adviser will advise you regarding what financial protection policies you should be considering so that you could keep your property if the worst was to happen. They will explain how the policies work and work with you so that the appropriate applications can be made. Once these applications are approved you will receive formal Offers of Terms from the insurers.
Your mortgage lender will also very likely require you to have suitable Buildings Insurance arranged before they will allow Exchange of Contracts. Your Prospect Adviser will share options for you to consider for this. If you agree to proceed with an option, your Adviser will make an application for you ready for exchange.
Your solicitor acts for you
Your solicitor undertakes Searches and completes all the legal checks on your behalf. They will share this information with you for your review. They will then draw up a Contract for you to sign in readiness to complete the purchase. Speak to your solicitor for further information.
Contracts are exchanged
Your solicitor will arrange for the legally binding Contracts to be exchanged between you and the seller. You will now need to provide your Solicitor with your deposit in readiness for the purchase to take place. Once contracts are exchanged this legally commits you to buying the property. Your solicitor will now give you a completion date for the purchase to be finalised.
Start planning your move
Now you have a completion date you need to make preparations to move into your new property, this includes potentially arranging for a removal firm to assist you if needed.
Completion date
Contact the estate agent and arrange to collect the keys. Move in!
You can also obtain additional clarification and information about the mortgage process via the FCA’s consumer website The Money Advice Service