How To Guide

Once you know how much you can borrow you can start looking for a property. Your step by step planner...

First Time Buyer

Start by arranging an appointment with us to ascertain how much you can borrow – this is referred to as an affordability check. If a Mortgage Agreement in Principle or Decision in Principle is required the lender will usual conduct a credit reference agency search. Once you know how much you can borrow register with estate agents and start looking for a property. The internet eg. Rightmove.co.uk is a very good source for finding a property.

Step 1

Start by arranging an appointment with us to ascertain how much you can borrow – this is referred to as an affordability check. If a Mortgage Agreement in Principle or Decision in Principle is required the lender will usual conduct a credit reference agency search. Once you know how much you can borrow register with estate agents and start looking for a property. The internet eg. Rightmove.co.uk is a very good source for finding a property.

Step 2

When you find the right property, make a formal offer ‘subject to contract’ it is now time to make a further appointment with Mortgage Store to complete the mortgage and necessary insurance applications. A solicitor will be instructed who will act for you and the lender, Mortgage Store can recommend and arrange a suitable solicitor.

Step 3

The lender will arrange for an approved surveyor to carry out the survey – ‘valuation report’ on the property. To check the property is in sound condition, it may be worth having a more detailed survey – ‘homebuyers report’ or ‘structural survey’ especially if the property is old (please ask for further details on pricing).

Step 4

In most cases the lender will send you a copy of the valuation report. Assuming it is in order, your mortgage will be confirmed and formal offer in writing will be issued to which a copy will be sent to you and your solicitor acting. In other cases the lender may add conditions to the mortgage such as repair work, in this case, you will need to obtain quotes for the work to be done. In some cases once the works have been carried out the surveyor will need to reinspect the property to ensure that the works have been carried out satisfactorily, there may be an additional fee charge for reinspection. Again, Mortgage Store can help with this situation.

Step 5

Your solicitor will apply for searches and once they have the search along with the mortgage offer and there are no obstacles they can work on product a contract.

Step 6

With your solicitor, you arrange to go through, agree and sign the contracts and pay your deposit in readiness for exchange. Contracts are then exchanged and a completion date is set. Once the contracts are exchanged you are committed to buying the property, there is no backing out. All relevant insurances are placed on cover. You can now start planning your move.

Step 7

Completion date – funds are released through your solicitor. You can now call your estate agent to arrange collection of the keys. IT IS NOW TIME TO MOVE IN!

Jargon

APRC Annual Percentage Rate of Charge
BOE Bank of England
Bank Tracker Mortgages Interest rate that tracks an index, eg. BOE
Buy to Let Mortgage on a property to be rented out to tenants
Completion Date all parties complete - moving in date
Conveyancer Either a qualified solicitor or licenced conveyancer used to carry out all legal work on behalf of the client and the lender
Discounted Rate Mortgage % of interest rate is discounted from the normal variable rate
Exchange of Contracts The date contracts are exchanged and deposit paid on purchases only
Fixed Rate Mortgage % of interest rated is fixed for a certain period
Flexible Mortgages Can overpay monthly mortgage and redraw down from the lender at a later date if required
HERM Home Equity Release Mortgage - releasing equity from your home in your retirement (over 55)
Interest Rates The % of interest charged on the loan
The Lender The bank or building society lending the money for a mortgage
LTV Loan to value - % loan to value of property
The Mortgage Secured loan on a property
Purchaser Person buying the house
Remortgage Secured loan on a property that you already own (switching products/lenders)
Searches Local and environmental searches carried out by the solicitor/conveyancer
Shared Ownership You purchase a share of the property from a Housing Association and pay rent on the remainder share
Surveyor Person doing the survey usually on behalf of the lender, or the client if a more detailed survey is required
SVR Standard Variable Rate
The Contract Drawn up by the solicitor and handed to the purchasers solicitor for agreement, the contract must be agreed by all parties
Vendor Person selling the house


Your property may be repossessed if you do not keep up repayments on your mortgage

For Mortgages you pay a fee normally £199, and we receive commission from the lender. This varies according to individual circumstances.

For Surveyors we act as introducers only.

EQUITY RELEASE REFERS TO HOME REVERSION PLANS AND LIFETIME MORGAGES. TO UNDERSTAND THE FEATURES AND RISKS ASK FOR A PERSONALISED ILLUSTRATION.

Accreditations

  • members of sesame
  • lifetime mortgage license
  • 26 years trading
  • small family run business