A question that we regularly get from customers, is how much will their process actually cost? Generally speaking, First Time Buyers in Derby are the ones who reach out to ask this question the most.
Because of this, we have put together a handy list of the different fees you can expect to pay throughout your mortgage journey, and the different points at which they become payable.
Estate agent fees will generally only be payable if you are selling a home. With general interest in online estate agents on the rise constantly, you can sell your home with much lower fees on a basic Rightmove listing.
On the other hand, if you are looking for a more localised and personal service provided by a dedicated sales negotiator in a local branch, you will be looking at a fee somewhere around 1-2%.
Your mortgage lender will require that you have a valuation carried out on your new home. This is to determine the value of said property, to confirm that it is worth the amount you’re looking to borrow.
The costs of a valuation can vary from nothing at all (for a basic valuation with some lenders), all the way up to well over £100 for a much more detailed Home Buyers’ Report. A full Building Survey can potentially cost more than that.
Really, being able to choose which report you would like is the key here. The valuation you decide will vary based on the age and type of the property you’re looking to buy, as well as any concerns you have.
If it’s a newer property, you may want a basic valuation. If you are buying a period property, you’ll probably want a more in-depth report.
Some of the mortgage products that you will find, will have cheaper rates. Occasionally though, the arrangement fee can outweigh how cheap it is.
This isn’t always the case, as there are products that won’t have a fee, meaning they cost nothing. That being said though, some might have a fee and they could be quite costly, depending on your lender or product.
You may have the choice to either add these to your mortgage balance or pay these upfront. If you add these to your mortgage, you may incur additional interest charges.
You will need to hire the services of a solicitor, and the fees for these can be very different depending on who you speak to. With a local company and a straightforward property purchase, you may find it’ll be around the mid hundreds.
When dealing with a solicitor, you will need to give them your property address. This will apply whether leasehold or freehold. In order to obtain a quotation, they’ll also need to know the purchase price.
The key points to cover when asking for a quote are:
You may need to pay an extra tax on your home, which your solicitor will collect on the completion of your purchase of the property. Further details about who this applies to can be found here: https://www.gov.uk/stamp-duty-land-tax.
A trusted and experienced Mortgage Broker in Derby will typically charge their own service fee. The fee amount will vary depending on the case and the mortgage advisor.
The cost of removing your furniture from your home can vary depending on who you use and the service you are looking for. Hiring a van to do it yourself may be a cheaper option than hiring a removal service, though they will be more efficient.
Book a Free Mortgage Appointment
To learn more about your mortgage options or to get started on your mortgage process, book your free mortgage appointment with one of our mortgage advisors in Derby today. We have frequent appointment availability, at times that are convenient to you.
Here at Derbymoneyman, we find the two questions First Time Buyers and Home Movers in Derby commonly ask us is ‘Can I get a mortgage in my circumstance?’ and ‘How much can I borrow?’. In this article, we will be discussing the second question as this has changed drastically in the past decade.
Prior to the days of credit scoring, your local Building Society Manager would manually assess mortgages. To make the process more consistent and reliable, the 1990s introduced the idea of lenders carrying out more regular income assessments.
In order to lower the number of mortgages being accepted to people who couldn’t afford one, a lending cap was introduced. This prevented people from borrowing more than three to four times their annual income.
To receive more applications, lenders started to become more generous with this leading cap as well as their conditions. There were even some lenders who accepted customers a mortgage without any background checks such as payslips. This would eventually become the catalyst for the credit crunch in 2007. In the midst of the credit crunch, lenders were requesting a 20-30% deposit, which made it very difficult to obtain a mortgage as a first time buyer in Derby or if you were moving home in Derby.
In the early 2000s, lenders became flexible in their criteria a lot more, arguably being too generous in the amount they would be willing to lend their customers.
Depending on the lender, some people were offered self-certified mortgages. These type of mortgages meant you were not required to have a background check so as the customer, you could self certify your income, regardless if the buyer falsely inflated the amount they were declaring.
Due to many people carrying out self certified mortgages, the market fell. This began the infamous Credit Crunch of 2008, from then to 2010, these became a very difficult times.
This especially effected individuals who were wanting to take their first step onto the property ladder. At that time, stricter lending criteria was to be put in place due to lenders having to change.
As the market made a recovery, the Mortgage Market Review (MMR) 2014 was created to provide an updated and sounder credit scoring system. The MMR was a set of requirements that lenders had to follow. Nowadays, lenders can determine if an applicant will be able to pay off their mortgage based on their financial state through the affordability calculator.
Lenders can use the calculator to receive a more meticulous insight into an applicant’s spending habits as well as net disposable income. A thorough assessment of your bank statement is carried out to ensure that if you can’t afford a mortgage, then you are not granted one as you could have been prior.
With this assessment, you will find that the majority of lenders will no longer go past 4.75 times your annual income.
As mentioned, lenders will look into your spending habits and the way they analyse these depends on your situation. For example, you may have to pay high childcare costs, have a large number of credit commitments and in some circumstances, you might be paying off your student loan. With this in mind, a mortgage lender will likely offer you less than your work colleague for example, who has fewer outgoings.
These days, there is a distinctive difference between lenders when it comes to how much or little they will lend to some customers. Now and again, lenders have been known to penalise low-earners.
The reason for this might be that they are looking for that type of applicant. They may lend if they see pension contributions as a fixed outgoing, in particular, to customers who have a significant deduction, less than a private-sector worker.
With every lender comes a very unique lending criteria, and every customer has its own circumstance, in the case that you need to maximise your borrowing capacity to have a chance at buying your dream home.
Lenders will always be competitive when it comes to price and lending criteria, however, they will avoid competing for the lowest rate as this will provide no profit gain for them. Furthermore, this will be highlighted through the difference between lenders and their maximum borrowing capacity. Different lenders target for different niches of clients therefore don’t feel it’s inevitable that one lender won’t lender to you as there will be another out there who would.
State benefits like tax credits are factors lenders will take into account for a mortgage. Some lenders may be more generous if you are for a self-employed mortgage in Derby. Increasing the amount they will lend can be done through extending the term of the mortgage to the maximum allowable.
Seeking Mortgage Advice in Derby can be very beneficial. On behalf of the customer, our team will search the market to try and match you to various lenders criteria.
When it comes to knowing the maximum amount you can borrow for a mortgage and your repayments, book your free mortgage appointment online today to speak with one of our expert Mortgage Advisors in Derby. They are determined to make sure your process run as smoothly as possible and search through thousands of mortgage deals to find you the most suitable for your circumstances.
Through our experience as a mortgage broker in Derby, we have found that there are a lot of questions within the mortgage industry that come up regularly. To relieve clients worries, below is a list of common difficulties you may get into:
If childcare costs are involved, you usually aren’t as at risk of getting turned down for a mortgage. Potential outgoings of childcare costs can sometimes affect affordability. This is something you should consider as the lender may grant you a lower mortgage amount because of your childcare, in comparison to an applicant who may have the same amount of income but have no children.
Childcare costs are usually associated with a loan or credit commitment. Parents can still be granted a lower mortgage without the childcare costs and the mortgage amount may still be lower than applicants who aren’t parents. This is because lender’s affordability calculators often factor in having kids in as some additional expense.
Child benefits and other state benefits can be something lenders will consider. In some cases, increase the amount they will be willing to lend you.
Nobody ever plans ahead in buying jointly with a partner, expecting to eventually get a divorce or to separate. Unfortunately, this happens more often than you might think. When divorce or separation occurs, certain files and documents need to go through changes such as a name change on a mortgage and inquiring as to whether or not a person is allowed two mortgages.
It’s a requirement that you get in-depth mortgage advice in Derby for instances like names to be removed and for someone to be allowed two mortgages. In the circumstance where you receive maintenance, this usually is put towards your income for a mortgage.
Surprisingly, this is a lot easier than people might think. In some cases, the lender’s criteria may require the applicant to be in work continuously for a period of time while some lenders are flexible with this. Even if you are still in your first job, and haven’t been employed with anyone else, you may still be able to get a mortgage.
Obtaining a signed contract and job offer when you’re starting a new job can give enable you to get a mortgage. Gaps in employment might be a problem with lenders, which is something to remember and probationary periods are typically acceptable.
The years after the financial crash have seen Anti-Money Laundering precautions become stricter. Lenders will want you to evidence where your money for the deposit has come from. This is something solicitors and estate agents might want to discuss with you.
Due to this, any large amounts that you want to deposit will be questioned and could mean your application will be at risk of being rejected. This can be a common occurrence for first time buyers in Derby.
It’s common for some applicants to have a ‘gifted deposit’. In this case, the person who decides to gift your deposit will need to confirm in writing that it is not a loan and is just a gift.
It’s important to remember that you need to be careful with your credit score when it comes to applying for a mortgage. This is because you’re more likely to be accepted for a mortgage if your credit score is higher. Addresses can be one of the factors that can affect your credit score. Having fewer addresses on your record is best, however, people have been taking this in the wrong direction.
In some cases, where applicants have moved out of their parents’ address into rented accommodation, they have left the address they previously lived in on their bank statements, credit card, and electoral roll information.
The reason many do this is that they believe that it could help their credit, but this is simply not true. If anything it can make it worse, because even if you don’t think it will show up, if you have moved to a new address, it will be recorded somewhere on your credit report.
This could be from when you have ordered online and your delivery address is shown, or can be from a car/home insurance search. Basically, the address will link to your credit report from anything you have done involving a payment.
Before carrying out a credit search and applying for a mortgage, it’s good to check that nothing will go against you. The things that will need to be switched to your new residential address includes both credit cards and current accounts as well as the electoral roll.
These checks only apply in situations where you have already moved out of your parents or previous home, as usually you only change your address after you’ve moved in, not before. If you are in a situation where you have already moved in and are paying off a mortgage, it’s imperative that you update your address to reduce any harm in the future if you are looking to remortgage.
Updating your address on your credit file and the electoral roll is something that people forget to do, however, it can make a huge difference too. As well as this, being accurate on the date in which you moved into your rented apartment/new home and the day you left is important because, making a mistake with these dates can sometimes make it look like you’re living in two places at once.
You need to demonstrate that you are responsible and take your financial life seriously. Therefore, you need to make sure that every bit of information on your file is up to date to show the lender that you are fully prepared. Impressing your lender is something you want to do ahead of applying for a mortgage and, by doing this, you conduct yourself in a more open and honest way.
Having no mortgage experience as a first time buyer in Derby can be difficult, this is why we are here to offer you a helping hand. Get in touch if you still need some mortgage advice in Derby or you are looking for some insight from a professional mortgage advisor and we’ll see how we can help.
As a first time buyer in Derby applying for a mortgage, you need to be aware of your credit score. You will find that the least amount of addresses you have on your record, the better, though this seems to be something that people are more knowledgeable and aware of nowadays.
Our experienced mortgage advisors in Derby have found they are many applicants who have moved out of their parent’s address into rented accommodation, yet believe that it is a good idea to keep their previous address registered on bank statements, credit cards, and electoral roll.
People believe this is beneficial despite being a flawed strategy. Almost every time, if you have moved to a new address, there will be some record of this on your credit report. Your address could be recorded from a delivery address when you have ordered something online or car/home insurance search and many more.
Getting all your accounts (credit cards/ current accounts) and electoral roll changed over to your new address can be the best strategy when you are thinking of taking out a mortgage. At the time of updating your address on your credit file and electoral roll, it’s best to double-check the date in and date out. The consequence of making mistakes with these dates is that it may appear on your records that you are living in two places at once.
This will show a more open and honest way of trying to apply for a mortgage which will benefit you greatly in your Mortgage application and when it comes to approaching a Mortgage Advisor in Derby.
When it comes to the homebuyer experience, first time buyers in Derby like yourself can find it stressful. It doesn’t have to be that way. Listed below are nine common questions to ask when enquiring about a property that will allow you to make the most out of your house viewing and provide you with some peace of mind.
Buying a property can be one of, if not the biggest financial commitment in your life.Therefore, it’s perfectly acceptable to have a good think about whether or not you want to commit to buying a property.
You only have so much time to think about it due to the interest your dream property may be getting. It’s best to find out how many people have viewed your desired property to understand how much ‘thinking’ time you may have before making a final decision. Furthermore, if the property receives a lot of interest, you need to be ready to have a final answer as soon as possible.
A property chain can notably impact some areas of your mortgage process and in particular, how quickly you would be able to move in.
If there is no onward chain, it’s likely the moving process will be swift, especially if you are not part of a chain yourself. Another factor that could speed up the process is if you don’t need to sell your property first. This is because you will not be holding up the home buying process.
Remember to use this tactic when negotiating a price.
Some previous homeowners like to leave items behind as a way to save on costs, which could be a big advantage for you. A washing machine, fridge, freezer are just a few they might include, or typically a shed if the property has a garden.
On the condition the appliances work, it’s a benefit to new buyers as it saves them a bit of cash until they get something new and modern, however, you will have to factor in disposing of them should you not want or need the items.
If you buy a new property, you might have the option to purchase any extras that are brand new and there for you on your moving day.
Finding out what your neighbours are like can be a key component to consider when deciding on a property as a good or bad neighbour can make or break your experience. Furthermore, this is especially helpful if you’re moving into an area you are not exactly familiar with.
Deciding to move to new homes can be a risk initially because you won’t know what your neighbor will be like. First impressions are not always important, but it’s always handy to get on with them as you may both be living there for a long time.
The amount spent on running costs can depend on where the property is in Derby. For this reason, it’s best to ask the right questions as well as doing some research. Topics to look into or ask your seller could be how much the council tax is or the average spend on utilities. As well as being good information to know, it also can help you budget for each property accordingly.
Questions like this can make a significant difference in the decision process because a south-facing garden can be a requirement for some. It’s perfect for relaxing in the garden in late summer evenings as well as reading with natural light. You may find that some locations pay for a more premium price in order to have a south-facing garden because it’s where the position of the sun is throughout most of the day.
Here is another significant impact on your budget. Information to find out that may be essential to know include:
A typical of the house-buying process is negotiating on a property price. Because of this, it’s key to be as prepared as possible to make an offer on a property that you like. If you are looking to improve negotiating on a property price and being one step ahead click here.
To get an idea of how low in price the seller would want to go, it’s best to chat with the seller or estate agent. Also, ask if any other offers have been made and rejected before your bid.
When planning what you need to do before moving in, it’s best to set out the date of moving first. From this, you can plan out other jobs such as instructing a conveyancing solicitor, packing your belongings, and arranging a removal van to transport your belongings to the new property.
Firstly, we need to look back at the years that lead up to the 2007/08 “Credit Crunch”. In the 1970s and ’80s, if a first time buyer in Derby took out a mortgage, it was likely through a building society. Surprisingly, banks didn’t always do mortgages!
The process to know if you could qualify for a mortgage involved making an appointment with the building society manager. Customers would take out savings accounts with them, and this money would go towards the building society to lend to other customers. In order to make a profit, interest rates were higher when dealing with borrowers compared to savers.
When it came to the banks going into mortgage lending, they moved away from the older model. Alternatively, they would look at the markets to ‘buy’ the money. This would accelerate the rate at which they could lend to customers.
Skip to the mid-2000s, and the market was full of new specialist lenders, with many originating from North America. Their method allowed them to raise their new money and lend again by selling their book of mortgage customers.
This was dubbed Securitisation. These books were bought by investors and were typically from larger institutions such as pension funds and high street banks.
Due to the market making a large amount of money, the new lender’s created lending criteria that was more relaxed. A poor credit score or wanting to self-certify was no problem, or so they thought.
As mortgages began to default, major banks lost their confidence in each other. This was because they were uncertain of how exposed they were in the quick unraveling sub-prime mortgage market.
The banks’ share prices dropped. The UK Government (or more specifically, the taxpayer) bailed out some banks to stop them from going bust, however, many failed to continue.
Almost 80 different banks, building societies, and lenders, across around 20 different countries, filed for bankruptcy or were acquired. This was named “The Great Recession”.
Due to this, lending quickly dried up. Everyone lost confidence in the UK economy and property prices significantly dropped. The market took almost a decade to safely recover.
Investigations were undertaken to look into where it all went wrong, as nobody, especially the UK government, wanted it to happen again. This led to the creation of the “Mortgage Market Review of 2014”.
By this time, self-cert mortgages were banned, but the biggest change was the lender’s responsibility to ensure mortgages were affordable.
Lending criteria tightened as lenders were required to look more into customer’s incomes and outgoings. Credit commitments, childcare, and other outgoings were taken into account so lenders could have confidence that customers could consistently afford their mortgage repayments.
These days it’s a lot harder to get a mortgage. Customers are expected to be a lot more organised with paperwork to prove their finances are taken seriously.
Mistakes were made in the time running up to Credit Crunch, but we hope that the industry learned a lesson from this event and continues to minimise the chance of this ever happening again.
When considering ‘where to live in Derby’, there are many things you will look for. House hunting as a first-time buyer in Derby or as a home mover in Derby can be daunting. You will be looking at mortgage arrangements and the best mortgage deal available for you, and your finances for your new home.
By now, you probably have a rough idea of where you may like to live, the type of house you would like. You will be considering the location, amenities and how much you get for your money. But how to decide which area you would like to live in?
We’ve put together a few points to consider when choosing where to locate in Derby.
Depending on where you decide to locate in Derby will be one of the most critical factors. You will have to think about whether you want a city location or looking for a more countryside setting.
You need to consider this carefully, as the area will affect the commute to work, access to local amenities, shops and schools.
We all generally have to consider some factors, such as how we get to work for many people. So access to primary transport links, railway or bus station, and motorway links will be necessary, especially if you don’t have your mode of transportation.
For those with children, an essential factor is usually the quality of the school in the area. There are some great schools in Derby, and it’s always worth taking a look at the school league tables if you have any doubts on which school to let your children attend.
What you are looking for in the area may differ depending on your lifestyle. Some of the things you may consider are the proximity of the nearest supermarkets, shops and maybe how close you are to the emergency facilities.
We recommend you make a shortlist, what you need and what you would like near you as a priority. When you find a house you are interested in, you can then compare it with your ‘wish list’ and see if it matches your needs.
Depending on your circumstances, this is a personal choice on whether you need additional support with the children, help with school runs and childcare. So it may also be that you would like to be in as close proximity to them as possible, or at least just a short distance away so that it’s possible to visit if you wish to do so.
When you choose the ideal home, you need to set aside how far your money will go and what you get in a home for the amount of money you spend. So you may need to compromise on what you are can within your price range and budget.
Some tend to keep to themselves, and others prefer being part of a community. For best results, look at local websites or take a visit beforehand to get to know locals who will inform you on current events and what’s available
Maybe you are purchasing a property having long term investment ideas and, as such, hope the property prices rise, on the off chance that you choose to sell in the future.
The inflation of property prices has vastly outstripped the increases in standard wages over the years. Nowadays a home buyer may have to purchase a property with a friend or partner in order to be able to afford a property.
This all boils down to measuring affordability. With two parties to look at, lenders will be calculating two incomes rather than one, potentially increasing the maximum mortgage amount. Of course, the mortgage will be more affordable between two people as there will be someone to split the costs with.
In some cases you’ll find that there are mortgage lenders that will allow up to four people co-own a property together. Because there are multiple parties involved, this can cause some debate with changes in circumstances. For example, if one borrower decided to stop their contributions to the group mortgage payments, the lender will still chase the rest of your group for payment.
Further from that one, all the joint owners still hold a legal right to stay within their home unless a court rules otherwise, which means that the person withholding their contribution doesn’t have to leave as they’re still part owner of the property. It’s with this in mind that you need to be very selective about who you buy with.
If one of the parties wishes to increase the mortgage at some point in the future, then all borrowers need to provide their consent. It is best practice to plan ahead for down the line, just for in case someone ends up with a different plan in mind or some circumstances change.
It is common with couples who are married, in civil partnerships or simply cohabiting, to opt for joint tenancy on a mortgage. Tenants in common are often chosen by relatives or friends who are looking to buy a house together. You will need the consent of the other applicant if you are wanting to sell or remortgage the property in the future.
For a tenancy in common will still jointly own the property, but there is no legal requirement to do so in equal shares. This works out best if one party is earning significantly more per month than the other. In addition to this, you can act individually if you are a tenant in common. This means that you can freely sell or give away your share of the property to someone else, if you wish to remove yourself from that setting.
In these cases, if one of you were to unfortunately pass away, the property will be in possession of the other owner on the mortgage. It is recommended to take out life insurance to protect yourself for this down the line. If this were to happen, the mortgage would be repaid at that point.
All mortgage borrowers are jointly and severally liable for the upkeep of the mortgage payments. If one of the party stops paying then all of the parties involved have to make up for the shortfall to prevent possible mortgage arrears.
It’s important to try and get on top of this as early as possible. The reason for this is because falling into arrears could possibly stop you from getting another mortgage further down the line. The best way to view your mortgage situation is to interpret it as you don’t own 50% of a property, you own 100% of it jointly.
If things don’t particularly go how you’d intended them to, whether it be a disagreement with your co-owners or the breakdown of a marriage/relationship, you may look to either remove others from your mortgage, or remove yourself from their mortgage.
When this happens, it is worth speaking to a trusted specialist mortgage advisor in Derby to see what your options might be. For more information on divorce and mortgages, please see our article “divorce & separation mortgage advice.”
As a dedicated mortgage broker in Derby, it’s always our goal to keep people informed, up-to-date and prepared for what lies ahead on their journey. In this article we have compiled an authoritative list of the 10 steps involved in the mortgage process for First-Time Buyers in Derby, so that you to be as “Mortgage Ready” as possible.
There are 10 steps in the process of buying a home and obtaining a mortgage;
After careful planning and consideration, you’ve now decided you’re going to jump in at the deep end and purchase a home, taking out a mortgage as a First-Time Buyer in Derby. We can almost say for certain that this is going to be one of the biggest financial decisions you ever make. Upon realising this, the anxiety can kick in, especially when you have no experience doing anything like this.
It’s at this point where a dedicated mortgage broker in Derby can jump in and start to guide you through the ensuing process. We always strive to take the stress away from you, working hard and doing our very best to ensure you come out the other side with a mortgage and in good spirits, ready to move into your new home.
Once you Get in Touch with us, we’ll be able to get you booked in for a free initial mortgage consultation with one of our very experienced and caring mortgage advisors in Derby. Here we’ll take some information from you and look at what your plans for the future are, before getting started on your mortgage process.
During your free mortgage consultation, your dedicated mortgage advisor in Derby will be able to run through a Mortgage Affordability Assessment with you. This process is fairly quick, and is where your dedicated mortgage advisor will go through your monthly income with you, looking at your regular expenditures (what you spend your money on), to get a good idea of whether or not you have the financial means to afford the mortgage amount you are looking to borrow.
It is very important for us to do this before presenting you to a lender, as we will need to have confidence that you can definitely afford your monthly repayments. This will help you avoid the risk of arrears and any future repossessions that may potentially occur, something the lender will really want to try and avoid themselves if they can help it.
A Mortgage Affordability Assessment will also usually be undertaken by a lender, so checks we take out initially will help save the lenders time, our time and more importantly your time, from an application that may be declined later down the line if you happen to fail on affordability.
Once we’ve done this, the next step in your consultation will be to help you obtain a very important and useful document called a Mortgage Agreement in Principle. If you’ve been doing any research on mortgages prior to receiving First-Time Buyer Mortgage Advice in Derby, you may have seen this mentioned with various names, including ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. The only difference between these is the name; they are the same thing.
The reason a Mortgage Agreement in Principle will be essential in your process is because it provides a record that you have passed a lenders initial credit scoring system, either by that lender performing a hard credit search (which will leave a footprint on your credit file) or performing a soft credit search (which does not leave a footprint on your credit file).
You’re still not guaranteed to be accepted for a mortgage, but this is a necessary step on your way towards your end goal. Another benefit to you having this document, is that it will show the seller of a property that you are very serious, possibly creating room for price negotiations with them when it comes to making an offer.
Usually you’ll find that an AIP will last somewhere between 30-90 days. If your Agreement in Principle expires before you are able to use it, it can be easily renewed. Our team of expert mortgage advisors can usually get one of these turned around for you within 24 hours of your initial free consultation.
After you have gotten yourself Agreement in Principle, it’s on to finding yourself a Conveyancer to provide assistance with the legal proceedings of the homebuying process. The term Conveyancing is the name used for the transfer of legal ownership of property between two different parties, whether you’re the buyer or seller.
Your Conveyancing Solicitor will be able to deal with contracts, give any required legal advice, conduct local council or authority searches, help sort out with Land Registry arrangements and finally the transfer of the funds you have acquired in order to pay for the property you are looking to purchase. As you can clearly see, this is a hugely important role in your mortgage process, so you must carefully make your choice.
Something else important to remember here, is that Licensed Conveyancers are property specialists and can’t deal with complicated legal issues, whereas a more general Solicitors will be able to offer you a full range of services, so can often appear to be more costly. Whilst we do not offer these services ourselves in-house, we have a list of trusted companies that we will gladly be able to refer you out to, if you ask us for this.
At this point in your story so far, you’ve spoken to a Mortgage Broker in Derby, passed the Mortgage Affordability Assessment, gotten yourself an Agreement in Principle and found yourself a suitable Conveyancing Solicitor to help process the legal side of your purchase. This means you’re almost at the finish line! The step that will follow is for you to make an offer on a property!
As mentioned earlier on, with an Agreement in Principle in hand, you will be in a far better spot to start negotiations with the seller regarding the price of the property. Make sure not to insult the seller with an offer that is too low, but in the same breath, don’t be afraid to ask for a lower price. Knowing you have an AIP to hand, the seller will be more likely to accept your slightly lower offer than an offer from someone who is willing to pay the asking price but hasn’t even begun to prepare themselves for a mortgage.
At the end of the day, the worst thing that can happen is the seller might say no, but it’s at that point you can work out a more reasonable offer for both of you or take a step back and find yourself a different property with a price that is within your range. Once your offer has been accepted, it’s back to your mortgage advisor and onto the final stretch of your mortgage process.
The step you’ll be moving onto is an important one, as you’ll be submitting the required documents to go forth with your mortgage. As you might have expected when such a large amount of money is involved, a mortgage lender will be very picky as to who they are willing to lend to and rightfully so. There are various notable instances in the past where they were a little more lax on the rules and things didn’t work out too well.
Your mortgage lender will need you to present them with various documentation to prove that you are the right person to lend to. They’ll need to see the amount you earn from your current career, where your current residence is and how well you conduct your finances on a monthly basis. If you’re obtaining a joint mortgage, they will require this same documentation from either person involved with the purchase of the property.
The types of documents you will be required to submit to the lender include; proof of identification, proof of address, the last 3 months’ of your pay slips and latest P60 (employed), the last 3 years’ proof of earnings and Tax Year Overviews (if you are Self-Employed in Derby), proof of any income such as state benefits or maintenance, proof of deposit and the last three months of your personal bank statements.
When your mortgage has been agreed in principle, and you’ve had an offer accepted, we can now proceed to submit your full mortgage application to the lender. With everything readied and checked by your Mortgage Advisor in Derby & their team of Mortgage Administrators, we are ready to submit an application to the lender and await confirmation that you’ve (hopefully!) got your mortgage.
Your mortgage advisor in Derby will send off all the collected evidential documentation for this, and then all that is left is to wait for them to respond with either an accepted application or one that has been declined. Whilst there is no given time frame, our Mortgage Administration team will be able to chase the lender for an answer on this for you, until we have a clearer answer for you.
In-between the point of submitting your mortgage application and being offered a mortgage, the lender will require that your property have a valuation survey undertaken. These are usually carried out by accredited companies nominated by the lender (someone that they will trust to do this).
The reason they do this is to understand how much the property is truly worth overall, compared to what you’ve agreed to pay for it with the vendor of the property in question. If you’re paying above what it is deemed to be worth, the lender may be less willing to accept your offer. The reason for this is because they will most likely be out of pocket and unable to make back the amount that they had let you borrow if you happen to fall gain any debt at any point. This is usually referred to across the mortgage world as a ‘Down Valuation’.
There are various types of property survey available, with each of these varying in price. Some will just want to take a look at how much the property is worth, whereas some will also provide information on any issues with the structure that you should look into, as well as possible repairs that you may need to keep an eye on for in the future. Your Mortgage Advisor in Derby will be able to advise on which one may be right for you.
Now it is time for the moment you’ve been preparing for all along. Your mortgage lender has checked over your case and performed an assessment of all the documented evidence. Once this is completed, they will be able to present you with your Mortgage Offer.
Our team of friendly Mortgage Advisors and Administrators in Derby, that you’ve no doubt gotten to know quite well over the course of your process, will check over the offer on your behalf to ensure everything is correct and right for what you wanted. Then after your mortgage offer has been received, it’s down to your Conveyancing Solicitor to take your purchase from there, all the way through to the point of completion.
Congratulations, you’ve now officially graduated from the point of being a First-Time Buyer in Derby, all the way to being a full fledged First-Time Homeowner in Derby! You can hopefully now rest assured that any of the previous anxieties and concerns that were bothering you before, are now in the rear view mirror. We sincerely hope you are happy with your new home and ready to begin your new life and bright future.
All that is left for you to do is go get your keys and begin the process of moving in all your belongings! From the bottom of our heart, we hope you received a fast & friendly Mortgage Advice service in Derby and enjoyed speaking to our team throughout your journey to becoming a homeowner. If you have chosen a fixed rate mortgage, at the end of your term, we will Get in Touch once more to help out with your Remortgage or any other future property plans.