1. Find out if you qualify
Once you've decided that you're in a position to purchase a home, the first thing you'll need to do is give us a call. At this stage, all that means is a 15 minute chat with an advisor to ensure that you meet our basic criteria. The sort of questions you should expect to be asked are:
- Do you have an overdraft limit on your bank account, and do you go into credit when you get paid?
- How much deposit do you have saved?
- Are you currently renting, and what are your rental payments?
- Do you have any dependent children?
- What kind of contract is your first post (i.e. maternity cover, permanent)?
- What is your start date and your starting salary?
- Would you be applying jointly, and what is your partner's occupation and income?
- Do you have any defaults or County Court Judgements (CCJs)?
We have a very small, friendly mortgage team with a lot of experience of helping first-time buyers. So, if there's anything you're not sure about, just ask.
2. Complete the budget planner
At the end of your first phone call, your advisor will send you a budget planner which you will need to complete and return. After receiving your budget planner, your advisor will assess your financial circumstances and send you what's known in the industry as a 'Decision in Principle'. This is designed to show you in principle and based on the information provided by you how much we may be able to lend.
3. Consider what you want to buy
Once you have received your Decision in Principle and know how much we may be able to lend you, you can start your property search.
4. Make an offer on the property
The next step is to make an offer on the property that you've chosen and agree a price with the seller. Once your offer has been accepted, you'll need to give us a call to let us know. You will also need to appoint a solicitor to deal with the house purchase paperwork.
5. Have your part 1 appointment
When you call us to let us know that your offer has been accepted, your advisor will book you in for your full two-part appointment. Part 1 is designed to assess your circumstances in more detail, and therefore takes around an hour to complete. You're likely to know the answer to the majority of these questions, but you may want to have a few payslips and bank statements to hand.
6. Read your KFI
At the end of your part 1 appointment, your mortgage advisor will send you a KFI, or Key Facts Illustration. This will detail the mortgage product that your advisor has recommended and outline all relevant fees and charges as well as your monthly payments.
7. Have your part 2 appointment
The part 2 appointment is designed to run through your KFI in detail with you to make sure that you fully understand the product and the cost implications. Your advisor will also detail the rest of the application process and the documents required to support your application. How long this phone call takes depends on how comfortable you are with the KFI and how many questions you have, but it usually takes about 30 minutes.
8. Complete the application pack and contact your solicitor
After your part 2 call, your advisor will send you an an official recommendation letter and application pack which you will need to complete and return to us along with the supporting documentation your advisor has requested. Your application will then be underwritten by the Society's in-house underwriters to ensure that we are able to lend you the amount you have applied for. You should consider contacting your solicitor/conveyancer around this time to advise them that you have found a property and that we will be in touch with them shortly.
9. Choose a valuation
To ensure that your chosen property provides suitable security for a mortgage, a property valuation will need be conducted. Whether you choose a basic valuation or a more detailed homebuyer's report or building survey is up to you, and your advisor will run through your options and detail the costs payable.
10. Completion day
After receiving your valuation report, we will assess whether the property is suitable. If it is, we will prepare a formal mortgage offer which will be sent to you and your solicitor/conveyancer. At this point, contracts can be exchanged and the purchase become legally binding. A completion date can also be set at this point. On (or shortly before) completion day, we will release the mortgage funds to your solicitor who will arrange for them to be forwarded to the property vendor. Once received, you can collect the keys and move into your new home as soon as you're ready.
Want to have a chat with someone?
If you've got any questions or would like to see how we can help you, you can get straight through to the friendly team on 0800 378 669.