How To Get A Mortgage

How To Get A Mortgage
Mortgage Must-Knows

In the wake of the financial crisis, mortgages have become increasingly difficult to get, especially for first-time buyers. So, what's the best way to secure a mortgage deal?

By Gordon Miller

How To Get A Mortgage

Step One
Choose An Independent Financial Advisor (IFA)
Firstly, shop around. Don't take the first, apparently best, option you find on a comparison site, or one you find on the internet. Instead, seek out an unbiased, independent mortgage from a qualified specialist, based on your specific requirements.

Karen Barrett, chief executive of Unbiased.co.uk, which is an online portal that helps you find local professional advice, says, 'The site has a "find an IFA" search category which allows you to select an IFA based on a number of criteria, to ensure you are matched with the best advisor for you and your financial goals.'

Finding An IFA

There are a number of factors you should consider when selecting an IFA, such as location, areas of expertise, qualifications, online presence and recommendations.
It's a good idea to contact at least three IFAs before selecting one. Compare the services they offer and how much you are likely to be charged for the work.
Most IFA firms will have a 'menu' they can show you which compares their services and costs to an average firm.
Finally, understand what you're being told. Never be frightened to ask your advisor to clarify something if you're unsure. It is your responsibility to understand the choices presented to you by an advisor and to understand the terms under which you are agreeing to do business.

Step Two

Provide Your IFA With The Right Information
Once you have selected an IFA you are happy with, the next step is to discuss what information you will need to provide. Melanie Bien, director of Savills Private Finance, says, 'Lenders will want to see evidence that you can afford your mortgage. This will mean giving evidence of your income - usually the last three months' wage slips, as well as the last three to six months' bank statements. They will also want to see proof of ID and residency.'

Step Three

Work Out How Much You Can Borrow
Melanie Bien continues, 'You will need a bigger deposit than you would have done a couple of years ago. Lenders require a 25% deposit for the best rates; if you only have 10% to put down, you will have to pay a premium on the rate. There are fewer mortgages available to those with a 10% deposit and the credit scoring is higher so you must have a clean credit history to be in with a chance.'

Step Four

Wait For Your Application To Be Processed
Peter McGahan, managing director of Worldwide Financial Planning Limited, says, 'Each application is subject to its own individual assessment. The general expectancy is from start to finish around eight to 10 weeks and goes as follows:

* From the day the application is submitted until its initial assessment by your chosen lender, allow one week.
* Once the application passes this initial assessment the lender will instruct a valuation of the property you wish to buy. An inspection date will need to be made for the property and then the valuer will draw up a report for the lender. This whole process will generally take another week.
* If the lender is happy with the valuation they will issue you with a mortgage offer. You will get a copy of this and your solicitor will also get a copy. It will then generally take your solicitor another six to eight weeks to carry out the legal process of preparing to transfer the property into your name and drawing down your mortgage funds.