Your Step by Step Mortgage Planner
So what is involved in getting a Director mortgage?
STEP ONE: Agreeing a price
When your offer price is accepted it is not binding until contracts are exchanged, which means that someone else could have a higher offer accepted (gazumping) at any time until then.
In Scotland the rules are different. A normal case involves a property being put up for sealed bids, to be made by a due date, all of which are binding. Buyers make suitable survey and mortgage arrangements and make a bid on that basis. The seller then chooses a suitable bid and the deal is binding. (The highest offer may not win, as the seller may accept a lower offer from someone who bids to complete in a short time. Sometimes other conditions may be stipulated by the seller, or offered in the bid ).
STEP TWO: Getting The Mortgage
The usual requirements are for:
- A regular income in a permanent job
- If you’re self-employed, 3 years’ accounts to prove earnings.
You should be able to get a mortgage of up to 95%, up to a limit of 4.5 times salary.
If you don’t fit into either of these categories, then you should be talking to Director Mortgages. You may need a initial deposit or perhaps take a lower loan size but we can advise your boundaries.
The value of the house is considered to be the purchase price or the valuation – whichever is the lower.
The lender will organise a survey to satisfy themselves on the value of the security. If the property is old, of unusual construction or possibly in need of repair, you should commission a structural survey.
STEP THREE: Conveyancing
You will need a solicitor to do the conveyancing and searches. Their job is to ensure that the property does not have any nasty surprises, ( e.g. the isolated dream cottage where title does not allow for access for services like electricity and plumbing, or someone else has rights to part of the land, or that there are restrictions on building extensions and garages etc.).
The solicitors fee will include elements for the charges levied by the various governmental departments involved.
Who’s who and what they do
The solicitor acts for you on the legal side.
The estate agent is interested in selling properties primarily but increasingly they look to arrange additional services such as mortgages through their ‘onsite’ advisers. Many of whom work form restricted panels which limits their ability to provide a fully competitive service. Please remember that you are not obliged legally or otherwise to speak to their preferred adviser.
The bank or building societies do offer mortgage advice direct to consumers, however you will only receive the products on offer from that provider at the time. This therefore either means accepting a restricted product opportunity and making multiple appointments with multiple lenders to broaden your research before making a decision. All of which takes time, causes delays, and can in some situations jeopardise the purchase.
We are able to recommend a Solicitor from a large qualified panel. Please let us know if you would like us to arrange a quotation for this.