6 steps to securing a mortgage

Purchasing a house can be one of life’s greatest achievements. Securing a mortgage, however, can prove stressful, confusing and time consuming if you don’t have the right guidance.

At Cooper Associates Mortgages we’ve put together a guide which outlines the typical steps required to secure a mortgage. Our knowledge and experience, combined with our drive to treat every client as our only client, means we have been able to help thousands of our clients on their property journey.

Step 1

Firstly, we need to understand you and your financial situation, to help establish your property-related goals. As a result, we will need to determine answers to the following questions, some of which you may not have considered yourself yet:

• What is your income every month? What are your outgoings?

  Ideally, lenders like to ensure your mortgage repayment is no more than one third of your monthly income, to ensure you are living within your means.

• How quickly are you able to pay off your mortgage?

  For example, do you plan to do this gradually based on your earnings, or with an alternative investment plan at the end of your term?

• Do you prefer to have a lower mortgage rate which moves up and down in line with the Bank of England base rate, or the comfort of a fixed rate, where you know what your outgoings will be for the mortgage term?

  There are a huge variety of mortgage products available, from fixed rate and trackers, through to more complex repayment options.

Our Advisers are always prepared to discuss these with you at length, guiding you and educating you on the various factors that will eventually help you achieve home ownership.

Step 2

Confident that you have accurately answered the questions within step 1, we can begin sourcing the most suitable mortgage specifically for you and your needs.  We will seek clarification on your type of employment, payment structure and any pension provisions or benefits, to fully understand your financial situation.

Step 3

Once we have discussed your options with you, we approach various lenders on your behalf and then revert back with a cost analysis and proposal of your best options.

We are a whole of market broker, with access to a wide range of lenders based on 1st charge lending. We regularly have access to exclusive and semi-exclusive products, having built excellent long-lasting relationships with lenders from across the market. This combination is what enables us to deliver the lowest rate and most suitable terms for your mortgage.

Step 4

Once we’re confident we have found the most suitable mortgage for you, we will aim to secure you an ‘in principle’ agreement with the lender. This will include running a credit check to ensure the lender is happy to finance your purchase. A credit check is essentially a search on your finances so the bank can understand your financial behaviour, giving the mortgage provider assurance that you are a worthy investment. Some lenders allow us to do a ‘soft check’, which doesn’t leave an imprint on your credit file.

If approved, you will receive a document confirming that the mortgage provider is prepared to lend you the money- typically referred to as a Decision In Principle – subject to you providing the relevant documentation to support your application.

Step 5

You are now at the exciting stage where you can begin the search for your new home! You will have a sound understanding of how much you can afford to borrow, therefore what type of property you can afford. Should your offer be accepted by the property seller, we will proceed with your mortgage application. Most lenders will conduct their own property valuation to ensure the property is worth the amount you are paying for it. After that, we will provide you with your mortgage offer, which typically takes two to four weeks.

Step 6

The final step involves the mortgage offer being sent to you, your solicitor and Mortgage Adviser, whereby all three parties need to approve the offer. From here the conveyancing solicitor takes the transaction through to exchange and completion. Upon completion you will receive the keys to your new home.

How we can help you

While this provides you with an overview of the steps involved in securing a mortgage, no case is ever the same and every mortgage application is dependent on you, your financial situation and what you are trying to achieve in purchasing a property. Complexities can arise but having a Mortgage Adviser to guide you throughout the process can help you enjoy as smooth a journey as possible to home ownership.

If you are considering benefiting from our Mortgage Advice service then please do not hesitate to call Cooper Associates Mortgages for a fee-free, no obligation conversation. Call 01823 273880 or complete an enquiry form and we will contact you as soon as possible.