Mortgages are a daunting enough without the worry of not knowing the process, when do you need documents, when do you get a FKI, what is a KFI? There are so many questions flying around it can be hard to keep a level head and build a plan. That’s why we’ve put together an overview of what happens during a straightforward mortgage application;
1. Client Engagement Call
If you’ve filled out one of our forms, you’ll receive a call from our Client Engagement Team who will discuss a brief outline of your needs to establish you are handed over to the most suitable adviser.
2. Handover & Suitability
Next step you’ll speak with one of our advisers this call will cover what you’re looking for, first mortgage, Remortgage, buy to let, etc, and any concerns you have.
Also, you will discuss suitability, you’ll discuss, mortgage terms, product types, product terms and repayments, this allows our advisors to find you the deals that are most suitable for you.
3. Product research
After this call, our advisors will search the market to find you the most suitable mortgage
4. Send out Key Fact Illustration
Once the adviser has found the most suitable mortgage for you they will send over a KFI (Key Fact Illustration) this will outline the product, including; mortgage term, product term, and repayments.
If you are happy with this KFI you will notify the adviser to proceed to the next stage.
5. Handover to the case manager
Your case will be handed over to a case manager who will work alongside your advisor. This is the stage that all documentation will be requested, the documentation can vary depending on each case, some will need more than others, but it will be explained by your case manager
6. Final checks – affordability and assessments
Once all your documents have been received and verified, will be completed” These include affordability, case managers, and advisors check to make sure that you are able to make the repayments, that the rate is still available as they don’t stay around for long and the final assessments.
7. Application submitted
A big step is your mortgage application is submitted to the lender!
8. Lender Assessment – Valuation – approve mortgage
The lenders will then complete their own assessments including scheduling valuation and checking through the valuation. Once they are happy with all assessments they will approve the mortgage.
9. Mortgage offered
The mortgage has been offered!
10. Lender hands over to the solicitor
The lender will now handover to the solicitor
11. Solicitor does final checks & searches
The solicitor will now do the final checks and searches, these with include land registry, environment, sewage, potential development plans, and planning permission granted in the area
12. Exchange contracts – sign over the property
Once the solicitor is happy the contracts will be exchanged, and the previous owners will sign over the property
13. Lender releases the money and keys are handed over
And the moment you have been waiting for arrives! The lender will release the money and you will receive the keys to your new home!
Cases do vary depending on each client’s individual circumstances and requirements, these steps will happen during the process but there is not a definitive time frame for each.
The process does vary also depending on where you are in your application, whether you’re ready to offer or haven’t started looking yet it is worth contacting an experienced mortgage advisor to help understand your situation and what you can expect.