Mortgage Broker Manchester

We at Search Mortgage Solutions are a whole of market fee free advice broker that can give advice if you wish to apply for a new mortgage. To obtain a mortgage we have listed the key points below. We are on hand anytime to explain further and expand on each step if you have any questions.

1. Step 1 – Have a deposit. This can either be your own savings or a gift from a family member. Some lenders may be happy with a non-family member gifting the deposit.
2. Step 2 – Speak to a broker to see how much you can borrow. This will be based on your income and spending commitments. We can establish a budget and advise on how much the new mortgage would cost monthly to see if this meets your expectations.
3. Step 3 – See if you are accepted by a lender by obtaining a mortgage in principle. A mortgage in principle Mip/Aip will confirm if we can obtain the desired loan amount you need to purchase your new home and if you are accepted by a lender. Ideally, before applying for your mortgage in principle, you should be aware of your credit profiling. This will ensure that we process with a lender who may be more accommodating if you have had any credit issues in the past.

A mortgage is a loan taken out so that you can purchase a new property. The loan is ‘secured’ against your home until you have fully cleared the mortgage/loan amount borrowed. If you can’t keep up your repayments the lender can repossess your home and sell it so they get their money back.

A mortgage broker will help you by guiding you through the daunting process of deciding which lender and type of mortgage is most suited for your circumstances. A mortgage broker will help you to understand the mortgage process and will get you the right deal to suit your requirements. This is achieved by providing you with advice and recommending the mortgages most suitable for you.

When you have decided on a mortgage broker, they will gather the relevant information and paperwork needed for the mortgage application. The broker will then submit the application to the lender and liaise with both parties to ensure that everything runs smoothly until the lender offers the mortgage.

There are several factors that control how long it takes to get a mortgage. Below are the stages involved in the application process.

The Process: Mortgage in principle – Mortgage certificate.

The first part of the mortgage process is to get a mortgage in principle. This is a statement from a lender confirming that they can lend you a certain amount of money to purchase a home. This will be subject to final underwriting checks. This is a really quick process if you have all the documents ready i.e passport, driving licence, 3 months bank statements, and 3-6 months of payslips. A lender will ask you for some basic information such as your income and current financial status. They will then check your credit history so that they can verify if you have the required mortgage. This is not a guarantee that a lender will definitely agree to a mortgage in the future but it is useful to have to show to estate agents to demonstrate that you are serious about buying.

The Mortgage Application

The next step in arranging the mortgage is the application. Your mortgage broker will complete your mortgage application and submit on your behalf. It is not a lengthy process, it should only take a few hours at the most, as long as you have your finances in order and the necessary documents and information at hand. To finalise the amount you are able to borrow lenders will need evidence of the following:

Details of the property you have offered on, as well as information on the seller’s estate agent and proof of your deposit.

Valid ID, such as a passport, to prove your identity.

Proof of your current address, such as a utility bill.

Three months bank statements, which can be used to show what your current outgoings are, including the likes of other credit commitments, childcare, utilities, leisure time, holidays, money to savings, pension contributions, etc.

Up to six months of payslips to provide proof of your income, including any bonuses or overtime.

If you are self-employed, your accounts along with a few years of tax returns will be required to determine what monthly payments you can afford.

Once submitted to the lender, they will fully assess and underwrite the case. Once the case is underwritten it will be offered subject to the valuation of the property that you are buying. This part of the process in normal circumstances can take up to 14 days.

Calculating how much you can borrow to buy a home will be based on your income/incomes and other factors. If you wish to apply for a mortgage, use our borrowing calculator on the website as this will give you a rough idea of how much a lender might offer you. This is based on how much you earn and whether you’re buying with anyone else. Mortgage lenders will decide how much you can borrow by basing income multipliers on your salary/salaries. Banks and building societies will offer between three and four-and-a-half times the annual income of you and anyone you are buying with. This means if you are buying on a single applicant basis and earn £30,000 a year, you would usually be offered anything between £90,000 and £135,000. There are exceptions to this however, especially if you work in a certain profession and then income multipliers may be higher. Other factors will impact how much you can borrow as well. Lenders will want to know your monthly outgoings and how you spend your money to complete an affordability assessment. Typically they will want to know about loan repayments, student loans, credit card balances, regular bills (e.g. gas and electricity), transport costs, grocery costs, spending on leisure activities. Recent bank statements and payslips may be needed to support your application.

When you complete on a new mortgage, you will then pay back the amount that you have borrowed and the interest that is being charged. You will pay this back over the period that you have borrowed the money for, typically 25 – 35 years.

A mortgage is secured against your property that you have purchased. It is secured against the property until you have paid it off completely.

A mortgage in principle MIP/ agreement in principle AIP or mortgage promise will be valid for between 60 to 90 days from initial application. This is an initial estimate from a lender stating what you may be able to borrow subject to underwriting.

If the certificate expires before you need it you can always reapply. However, be mindful that too many searches could damage your credit score.

A mortgage offer is a formal agreement between you and the lender once extensive underwriting checks have been completed. It is an official confirmation from a lender that they have agreed to lend you the amount you needed to purchase your new property.

Depending on the lender, a mortgage offer may last between 3 and 6 months.