The application process moves in the following stages. We do all the hard work and keep you updated throughout:
1) Agreement in principle (AIP) – the first step is passing the mortgage lenders online credit scoring facility which if successful will generate an AIP, which can then be converted to a formal mortgage application.
2) Mortgage Application – Converting the AIP to a full application and submitting this to the mortgage lender.
3) Initial documentation sent to the lender. At this stage the lender would generally instruct the mortgage valuation.
4) Underwriting – The lender’s underwriter’s will assess the application and any documentation provided. They would either, accept or decline the application or request further documentation to support the case.
5) Mortgage offer – Once the underwriter is satisfied with the valuation and documentation a formal mortgage offer will be sent to you. This is when the finance is effectively sorted, and it is down to the Solicitors to progress the purchase to exchange and then completion.
The Hawk method:
Step 1. We will arrange an Initial consultation to understand your circumstances and requirements, gathering all relevant information. This is your opportunity to tell us what you’re hoping to achieve and to ask any questions you may have. We can speak over the phone, via video call or meet face to face.
Step 2. We will conduct some initial research, checking all criteria and sourcing the best mortgages on the market for you using cutting edge software.
Depending on where you are in the process we would either be offering you indicative numbers enabling you to budget or making a formal recommendation if you are ready to proceed with a mortgage application.
Step 3. Assuming you are happy to proceed with the recommendation, we will gather any additional information that might be required for us to submit the mortgage application for you.
Step 4. Post application / lender underwriting– The lender will underwrite your mortgage and arrange for a valuation on the property. We will liaise directly with the lender to move your application to mortgage offer as soon as possible. Keeping you posted throughout.
The whole process is slick, we do the hard work for you and keep you updated throughout the process. Your mortgage broker will be available throughout the process, and you will have direct access to their mobile phone should you have any questions.
How much paperwork is involved?
Unsurprisingly a mortgage application will involve some paperwork and a degree of life admin.
We do promise only to ask you for what’s necessary, and we’ll try our best to keep this to a minimum.
What do you need to prepare?
– Proof of ID: Passport or driver’s license
– Proof of address: Driver’s license or Council tax statement or Bank/credit card statement
– Proof of income:
- Last 3 months payslips if employed or
- Last 3 years tax calculations and tax year overviews if self-employed or
- Copy of your latest contract if a contractor
– Bank Statements: Last 3 months statements to show expenditure and income. Online statements downloaded from your online banking are acceptable.
– Proof of deposit if purchasing
Capital Repayment – You repay the capital as well as the interest. For example, if you have a 25 year mortgage term, after 25 years the mortgage will be repaid in full.
Interest Only – As it says on the tin. You simply pay back the interest on the mortgage but none of the original capital borrowed. This means the monthly payments will generally be lower than repayment, but you would need your own repayment method – ‘repayment vehicle’. Interest only mortgages can be more difficult to obtain these days but they are still a viable option for certain clients.
Fixed rate – The mortgage you take out will be fixed at a certain interest rate. This would generally be fixed for an initial period of 2, 3 or 5 years. During this period, you can be safe in the knowledge that the interest and payments will not change. However, you are normally tied into these mortgages.
Trackers – Variable rate mortgages which follow (track) the Bank of England Base Rate. The rates can move up or down and may not tie you in with early repayment charges. Potentially making them more flexible.
Variable rate mortgages – The lender’s standard variable rate (svr) or linked to the svr. The rate can move up or down at the will of your mortgage lender.
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