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Mortgage Basics – Exchange of Contracts and Mortgage Completion

Feb 27, 2017

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You’ve saved a deposit, spoken to a mortgage advisor, completed the application process and received a mortgage offer. Here, as part of our series of articles ‘Mortgage Basics’ we ask – what happens next?  

Often, your solicitor will act on behalf of your mortgage lender as well as for yourself - so after the application process your mortgage lender will send a copy of your mortgage offer to your solicitors and instruct them to start legal work on its behalf. You and your solicitor will then move through the processes of purchasing your home with your solicitor. You will go through several steps before the sale is complete.

1. Solicitor Checks and Paperwork

Your solicitor will make a series of checks on the property you wish to purchase including raising questions about any improvements made to the home and ensuring all the relevant local area searches are carried out. They will also need to obtain title deeds, prepare a package of legal information and contract for the sale, request a settlement figure for any existing mortgage and liaise with all parties for exchange of contract and completion dates.

They will deal with any issues or concerns along the way, and keep you informed where necessary.

2.  Exchange of contracts

Once your solicitor has made all the relevant checks on the property, satisfied all the lenders requirements and prepared all the relevant paperwork, then both your solicitor and the seller’s solicitor will agree a date for exchanging contracts and completing the purchase of the property.

On the day of exchange of contracts, your deposit is paid to the seller’s solicitor. You are now committed to buy the property.

3. Completion

This is the last step of the home-buying process and is when your solicitor requests the funds from your mortgage lender. Your solicitor then passes those funds on to the seller’s solicitor. Once the seller solicitor has received all the monies due, the house purchase is complete and you get the keys to your new home.

Congratulations – you can now move into your new home!

If you would like to apply for a mortgage, contact our friendly team on 0800 378 669 or contact us online here.

You can also request a copy of our Mortgage Guide, which is packed with useful information on the full mortgage process – here. 

Read all the other article in our ‘Mortgage Basics’ series:

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.