What You Need to Know about Your Mortgage Offer
It’s important to budget effectively when buying or remortgaging a property. Your financial advisor will work closely with you to understand your circumstances, your income, outgoings and your affordability before considering a suitable mortgage product. It’s worth remembering that Conveyancing Solicitors aren’t financial advisors, so cannot provide you with financial advice on the best mortgage product for you.
Before applying for a mortgage, there are certain checks you should consider to increase your chances of securing a good deal.
Check Your Credit Rating
Any new lender will check your rating as part of the mortgage application process. If it is poor, speak to your financial advisor, who will explain how to increase the rating and consider any further mortgage products available to you.
Stay on Top of Your Finances
Make sure you have paid your current bills on time. Also, try to stay out of any overdraft and avoid entering any new credit agreement before you apply for a mortgage. Your financial advisor will explain the best way to proceed before you make an application.
The Legal Process
Once you have secured a mortgage product, your new lender will issue a Mortgage Offer. The Mortgage Offer sets out the terms and conditions, any special conditions, description of the property, the payment term, interest rate, expiry date and cost to you per month. If you are in a fixed rate mortgage, you will invariably have a penalty if you change your mortgage before the end of the fixed term.
You will receive your Mortgage Offer and a copy will also be sent to your Conveyancing Solicitor. It’s important you instruct a Conveyancing Solicitor as part of the mortgage application process to avoid any unnecessary delays.
Your Conveyancing Solicitor will review the Mortgage Offer and draft a Mortgage Offer Report, which sets out the specific terms and advises on any matters or conditions that need to be complied with before completion.
When Do We Need Your Mortgage Offer?
If you’re buying a property, our Conveyancing Solicitors will require your Mortgage Offer before we can exchange contracts, as we wouldn’t legally bind you to a transaction without confirming you have sufficient funding to proceed. If you are remortgaging, we need your Offer as soon as possible as we cannot proceed to completion.
The Expiry Date
Your Mortgage Offer will not last forever. Some Mortgage Offers can be as short as 3 months. You will need to ensure your Mortgage Offer is valid at the date of exchange and of completion. This may be difficult if you have an early exchange date and a long stop completion date, which can happen when buying a new build property. Speak to your financial advisor about this when making your initial mortgage application.
How are Mortgage Funds Received?
When your Conveyancing Solicitor is happy with the title to the property, the property search results and replies to enquiries, they will confirm you are in a position to proceed. If you’re happy with the reports you have received and understand the property you are buying, you will provide instructions to your Conveyancing Solicitor to proceed to exchange of contracts and set a completion date.
Your Conveyancing Solicitor will undertake final checks with your mortgage lender before exchange to confirm there are no outstanding conditions before completion. They will then request funds by submitting a Report on Title, also referred to as a Certificate of Title to your mortgage lender confirming the property is ‘good and marketable’. The Report on Title document will confirm the completion date and request funds to be sent to the Conveyancing Solicitor’s client account the day before completion.
Why Choose Simpson Millar?
Our national team of Conveyancers and Conveyancing Solicitors are on hand to make the Conveyancing process as quick and pain-free as possible. We are conveyancing experts and will advise you through each stage of the transaction. We will discuss the process and timescales involved to enable you to make informed decisions.
Our Conveyancing fees are competitive and transparent. We are ’Open Lawyers’, who understand how important it is to budget when considering any property transaction. We invite you to get a free instant Conveyancing quote and to compare our fees with other like-for-like Conveyancing quotes.
Simpson Millar is a national law firm with over 500 staff and offices in Bristol, Cardiff, Kingston-upon-Thames, Lancaster, Leeds, Liverpool, London, Manchester, Morecambe and Southport.