Buying a property in the UK, either as a residential or a commercial purpose, can sometimes exceeds a person’s budget, or they may not want to use their cash to pay the full purchase price. In these circumstances, people who want to buy a property often apply for a Mortgage.
Mortgage loans can be granted by companies that are financially authorized to do so. Property loan options may vary from company to company. However, when the loan options offered by authorized companies are examined, the options offered to individuals are generally similar, with some exceptions.
Generally, Mortgage products are divided into Residential Use and Commercial Use. The application process is the same, but the Mortgage for Commercial Use is more complex.
For this reason, a Mortgage for Commercial Use could take more time than a Mortgage for Residential Use.
Mortgage applications can be made directly by the buyer to the company authorized to grant loans or to the buyer’s own bank.
However, since the content of the mortgage offered to individuals can change daily, it is useful to carry out this process with Mortgage Advisors.
People who want to get a Mortgage usually manage this process with consultants called Mortgage Advisors. Working with a Mortgage Advisor could provide a smoother and faster result.
Decision in Principle sets out how much the lender is willing to lend you. It is important to do this before you buy a property so that you know you are looking at homes you can afford.
You can usually get a Decision in Principle the same day you apply. Many lenders allow you to apply online and get an instant decision.
The time it takes to find a home can range from a few weeks to several months. It is important to take your time and research your chosen area to make sure you make the right choice.
Once you have found a home, the next step in England is to make an offer, usually through an estate agent. The estate agent will let you know when they will get back to you.
Once your offer for the property has been accepted, you can apply to convert the Decision in Principle into a potential mortgage offer.
In most cases, the time from completing the mortgage application to receiving a formal loan offer usually takes a few weeks.
However, in some cases it may take longer. You can help speed up this stage by preparing all the relevant documents in advance.
The process involves a thorough check of your finances, and the lender will carry out its own mortgage valuation on the property you want to buy.
You will need to find a solicitor to conveyance the property to you. The solicitor will take care of this process.
If there are no problems or delays, the legal transfer of the house to you can take about 6 weeks. However, it can also take several months, especially if there is a chain transaction.
A chain transaction is where there are a number of transactions that need to happen at the same time. For example, if you are buying a property from someone and that person is buying a property elsewhere – this can be a chain transaction.
The following steps below are part of the conveyancing process.
It can form part of a conveyancing process. It is a good idea to have a survey carried out to identify potential problems with the property you are buying.
A survey usually takes a few hours. Most surveyors will send you their report within a few weeks.
Once you have received your mortgage offer and your solicitor is satisfied from the enquiries made of the property you are going to buy and is in legal possession of the property, you are ready to enter into a contract.
Your solicitor will exchange contracts with the seller’s solicitor and your will hand over the deposit you have put down to buy the house. The deposit is usually 10% of the sale price of the house.
With the exchange of contracts, the agreement between buyer and seller becomes legally binding. At this point, you will need to take out building insurance.
During the exchange of contracts, the date of transfer of ownership is also agreed. The date of transfer of ownership and completion of the transaction is usually set to take place 2 weeks after the exchange of contracts. This period may be shorter or, if there is a chain transaction, it may take longer.
On the agreed date, the buyer pays the remaining balance of the sale price, and the seller delivers the property possession to the buyer. The ownership of the house is then transferred to the buyer.
