As a Maidenhead mortgage broker that’s been helping people throughout the UK secure mortgages since 2005, we’ve heard some interesting opinions and perspectives on what exactly a mortgage broker does behind the scenes. Many liken what we do to the dark arts, which is as far from the truth as it gets.
So, in order to pull back the curtain and reveal how it all works, we thought we’d prepare a step-by-step guide to the mortgage application process.
In doing so, we hope it will help you be better prepared for when you come to apply for a mortgage (and hopefully you’ll be applying via our team of mortgage brokers in Maidenhead, too!)
- Choose a mortgage broker
It sounds easy, but if you’re wondering ‘how do I choose a mortgage broker?’, then there are a few things to consider. Ideally, you want to ask whoever you’re considering if they work with a comprehensive panel of lenders – and not just a select few. Ultimately, it means that you’ll have more options. Secondly, check their Google Reviews. If the reviews are either average or there aren’t many reviews from which to accurately gauge their work, move on. We’re a mortgage broker in Maidenhead that works with a wide panel of lenders and has 229 5-star Google Reviews. This means we have access to the UK’s best mortgage deals and come highly recommended.
- Fact finding
If you’ve chosen to use Alton Mortgages, the next step is to meet one of our Berkshire mortgage brokers, who’ll spend some time assessing key financial aspects such as how much you earn and spend each month, the size of your deposit and your credit history. Other aspects, such as preferred mortgage term length and the type of mortgage, will be covered here, too.
- Mortgage advice
This is the important bit – and the part where the real benefits of using a mortgage broker become clear. Having spent time fact finding and establishing your financial position, we’ll be able to present a series of options to you based on our understanding of you, our market knowledge and our relationships with the lenders with whom we work. At this stage, you’ll have a very good idea of the mortgages available to you, any associated fees and the monthly repayment figures.
- Decision in principle
So, you’ve identified a good mortgage deal – and therefore a lender – that you’d like to go for. At this point, you’ll be able to get a decision in principle. Whilst this isn’t a mortgage offer, it will act as an indication as to how much you can potentially borrow. Not only does this help you when it comes to understanding what type of property you can afford, but it also gives you added credibility when dealing with estate agents, as they’ll be able to see that you’re already halfway down the mortgage application process.
- The mortgage application
Okay, you’ve found your dream home and you’re ready to push the button. The next step is the actual mortgage application, which we’ll manage on your behalf. At this stage, the lender will review all the paperwork we’ve submitted – and we’ll work with the lender (and you) by submitting additional paperwork if and when it’s requested. At this point, a survey of the property will be required, which is carried out by the lender either in-person or via an online appraisal.
- The mortgage offer
For most of our clients, this is the exciting bit – the point at which they know the money is available and that the lender is willing to lend. At this point, the mortgage is a done deal and a copy of the paperwork confirming the offer is made available to you and the solicitor that you’ve appointed to handle the conveyancing. As we regularly highlight, a mortgage offer typically lasts for six months so you have time before you have to go through the process again. Just remember that it takes a couple of weeks for the application process, so make sure that you leave it no longer than five-and-a-half months before reapplying so as to avoid having to start the entire process again.
- Insurance
At this point, now that you know how much you will be liable for, it’s worth exploring insurance options that will, in the event of an unforeseen incident, enable you to continue meeting your financial obligations. At this stage, our team on Maidenhead insurance brokers will discuss a number of options including life insurance, income protection insurance and property insurance.
- Completion
The mortgage is now in the hands of your appointed solicitor, who will carry out all the key legal procedures required for a property to be safely purchased in your name. Once a completion date has been set, the solicitor will arrange for the funds to be made available for the purchase and, on completion day, the property becomes yours.
- Keeping on top
Now, the best mortgage brokers in the UK will not only get you the best UK mortgage deals of the day, but they’ll also make a point of contacting you before your mortgage deal expires (and before you default to the much more expensive standard variable rate) to help you get another great mortgage deal. In our view, any mortgage broker that doesn’t do this is questionable, so try and establish this before you agree to working with them.
Can we help you get a mortgage? Contact our Maidenhead mortgage brokerage on 01628 560820 or email enquiries@altonmortgages.co.uk to arrange an initial mortgage consultation.