FINANCE
Understanding the Mortgage Application Process own, so consider furnishing and decorating costs too!
satisfied, the lender will produce your full mortgage offer. This is usually valid for six months and the solicitors will need this in order for you to complete and move in.
STEP 3 – MORTGAGE IN PRINCIPLE
Purchasing your first home is such an important and exciting milestone. The process may seem daunting, but understanding what to expect will help you prepare STEP 1 – UNDERSTANDING YOUR FINANCIAL POSITION Before you start an application, it’s best to understand your current situation and plan for what will be affordable. Checking your credit file is a good starting point. This will show all of your current credit commitments, which you may need to manage alongside your new property costs. It will also show your credit history which may impact your lending options and available mortgage products. Typically, a higher credit score will allow you to access more preferential mortgage rates, so if you can make improvements to your credit score prior to application, this will work in your favour. STEP 2 – UNDERSTANDING COSTS Most mortgages require a deposit of at least 5% of the property value. A higher deposit may help obtain lower interest rates on your mortgage and will reduce the amount you need to borrow, resulting in lower costs. If you consider a scheme like Shared Ownership, you may only need to put down 5% of the value of the share you are purchasing, which can make things much more attainable:
STEP 6 – LEGAL WORK
The first step in applying for a mortgage is to obtain a Mortgage in Principle. Here the lender conducts an initial check on your application, based on the information you provide. Usually, a soft credit search which is not detrimental to your credit score is undertaken, with the lender completing a hard search later in the process. At Metro Finance, we can search across a wide range of lenders to obtain your Mortgage in Principle and help identify the mortgage product that best suits your particular circumstances.
An imperative part of the process. Your solicitor will liaise with the seller’s solicitor, handle the contracts and ultimately the transfer of funds between your mortgage lender and the seller. You are legally bound to purchase the property once you exchange contracts, and following this you will complete on the property. Finally comes the exciting part – getting the keys and moving in! Knowing what to expect during the whole mortgage application process will allow you to slide seamlessly into your dreams of property ownership and enjoy your new home!
STEP 4 – SECURING YOUR PROPERTY
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The Mortgage in Principle will usually allow you to place an offer on or reserve a property. Beyond this, you will need to submit a full application to the mortgage lender. This builds on the information supplied at Mortgage in Principle stage and will usually require supporting documents to be assessed by the Underwriter. Have your ID, bank statements, proof of income and deposit documents ready!
Your home may be repossessed if you do not keep up with repayments on your mortgage
There may be a fee for mortgage advice of up to 1% of the amount borrowed. A typical fee is £499, but this will depend upon your circumstances
STEP 5 – MORTGAGE APPLICATION The Underwriter assesses your documents, application, and the property you wish to purchase. This is to ensure they
are happy with the property as security for the
Property Value £250,000
25% Shared Ownership
Outright Purchase £12,500
money they lend you and the price you are paying for it. This is done via a valuation
5% Deposit
£3,125
Be prepared to save for more than just your deposit. You will still need to cover legal fees, moving costs and other potential application fees. Once you have secured the property, you will want to make it your
of the property taking place on
behalf of the lender. Once all checks are
84 First Time Buyer April/May 2026
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