Moving home can be daunting and from a mortgage perspective there a number of different factors to consider. If you have a mortgage already you need to establish whether you can remain with the same lender and “port” over the mortgage to the new property, potentially topping up and borrowing more with them, or whether a new lender will be more cost effective.
Even if you are tied into your current lender with a redemption penalty to pay it may still make financial sense to pay the penalty and switch lender. Start Financial Services can offer advice on which route to take.
When moving home you also need to ensure that your new mortgage is protected with the relevant insurance products. One of our brokers will review the cover you have in place and ensure that is still fits with your new arrangements.
As a home mover you will have been through the buying process before but the mortgage and property markets are constantly changing and it is important that you work with a professional adviser to ensure you that are fully aware of all the costs involved and understand how the process works.
The Buying Process
Step One
Meet with one of our brokers who will assess your mortgage and insurance needs. They will complete a fact find, collect and review your documents and advise you on the most appropriate lenders/providers for you. They will provide you with an ‘Agreement in Principle’, which is a credit-backed indication of how much you can borrow. They will also consider your deposit and tell you what budget you have to work with.
Step Two
Register with local estate agents and property portals and give them the details of the property you are looking for and establish what is possible to buy within your budget. Once you have found the property you wish to purchase you can make an offer. Before you do this you should discuss the offer with your broker - they will be able to confirm your payments and see if you can increase your budget if necessary. Once your offer is accepted your broker will re-confirm the products available to you and submit your full mortgage and insurance applications.
Step Three
The lender will carry out credit searches and instruct a mortgage valuation. At this stage you can organise a more detailed survey, which is something your broker will discuss with you. Your case will be passed over to an administrator who will call you to introduce themselves. They will now be your main point of contact and will keep you fully informed of the progress of your mortgage and insurance applications. You should now contact your chosen solicitor to instruct them, usually paying some monies on account.
Step Four
The lender will request the documents they need. Once these have been assessed and the valuation results are in, your case will be passed to an underwriter. If they are satisfied then the mortgage offer will be produced. A copy of the mortgage offer will be sent to yourself, Start, and your solicitor. You should check that the details match what you expected and raise any concerns with your broker. Your solicitor should have received a draft contract from the seller’s solicitor. They will work through this and apply for searches, raise enquiries and go through the special conditions on the mortgage offer. You will also receive a call from our general insurance consultant, who will provide you with a quotation for buildings and/or contents insurance. Note: The legal process can be slow – it is really important that your solicitor knows the timescales within which you wish to complete. We recommend that if you have a date in mind, you should make all parties aware of this as early as possible.
Step Five
Once the solicitor has the mortgage offer and responses to all enquiries and searches they will report to you with their findings and send the contract and mortgage deed for you to sign. Once you have signed and returned these, you should pay your deposit to your solicitor and reconfirm the completion date.
Step Six
When your solicitor has your signed contract and deposit they will contact the other solicitors in the chain and set a completion date. When this is agreed they will confirm exchange of contracts. At this point you are legally committed to the purchase. Upon exchange your Start administrator will put your insurance and general insurance policies in place.
Step Seven
Between exchange and completion your solicitor will carry out the necessary checks in order to complete on your chosen date. When you complete you can collect your keys from the estate agent or vendor.
Step Eight
Start will contact you regularly throughout the term of your mortgage to assess your circumstances to ensure that your mortgage and insurance arrangements remain the most suitable