Making a formal mortgage application
Once you have had an offer on your future new home accepted, you will need to fill in a formal mortgage application.
You and (if applicable) the joint borrower will need to provide details such as your name, address, and income.
You will also have to provide further documentation such as:
- Audited accounts or Inland Revenue statements of account going back two or three years (if you are self-employed),
- Proof of identity and address,
- Proof of your last 12 months mortgage payments or a tenancy reference.
What happens next?
Once they have received your documentation, the mortgage provider will arrange for a valuation survey to be carried out on the home you wish to buy.
You will need to pay for this survey but some lenders may let you add this into the mortgage amount.
The lender will verify all the information you’ve given them and make full credit checks if they haven’t done so already.
This will all seem daunting if you are a first time buyer or haven’t bought a property for a while, but our Independent Financial Advisors will be able to help you with this process every step of the way.
The formal mortgage offer
If everything is acceptable to the lender you’ll get a mortgage offer letter, which sets down the basis for the agreement between you and the mortgage provider.
You will need to sign the mortgage offer letter and any associated documentation and return it to the mortgage company.
Mortgages can all look the same, but the small print can reveal special mortgage conditions that could have a big financial impact. Ask questions, and read all the documentation before you sign.
Once you’ve decided to accept the mortgage offer and buy your new home, make sure you consider what kind of building, contents and life insurance you need to cover any unforeseen circumstances.
Building, contents and life insurance>>
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