Mortgages

Moving home is considered to be a very stressful period, but it doesn’t have to be. Let our experts guide you through the process straight to completion.

Kibworth Mortgages will be happy to help with all aspects of the process and be on hand to speedily answer any questions that you may have.

Suitable Mortgage

As an independent mortgage broker our experts have access to over 90 lenders offering hundreds of different products.

We understand the difficulties that can ensue if you are still tied in to your current mortgage. It is important to explore all options available to you, from simply porting the mortgage or even paying the Early Repayment Charges in order to benefit from a lower more competitive interest rate. At Kibworth Mortgages our experts will present you with all the options before recommending the most suitable solution.

Progressing Your Mortgage

We will continue to liaise with the lender to ensure a mortgage offer is issued within a suitable time frame. Our case handlers will happily liaise with the Estate Agent and your Conveyancer where required and ensure the process is as smooth as possible for you right to completion.

Estate Agents are always keen to know that you are in a good financial position and able to proceed as quickly as possible. We will liaise regularly and are happy for the agent to call in for progress updates where required.

* Your Home may be repossessed if you do not keep up repayments on your mortgage

THE MORTGAGE PROCESS

Stage 1 – Find a property you can afford

Before you start house-hunting, it’s a good idea to work out what you can afford to spend on buying a house or a flat and your monthly mortgage payments.

Choosing the right mortgage

It’s never too early for you to start thinking about arranging a mortgage as this can be time-consuming.

You can get a mortgage from an Independent Financial Adviser (IFA), mortgage broker or lender.

Once you’ve found a mortgage product you like, agree it as a mortgage ‘in principle’.

This tells you how much money the lender is likely to offer and the interest rate you’ll pay.

Stage 2 – Make an offer

Before you start house-hunting, it’s a good idea to work out what you can afford to spend on buying a house or a flat and your monthly mortgage payments.

Once you’ve found a home you want to buy, the next step is to make an offer, usually through an estate agent.

You only pay for an estate agent if you’re selling property.

The fees usually range from 0.5% to 3%, plus VAT, of the selling price.

Stage 3 – Arrange a solicitor

Before you start house-hunting, it’s a good idea to work out what you can afford to spend on buying a house or a flat and your monthly mortgage payments.

The solicitor will handle the legal work around the property.

Your solicitor will tell you how much you can expect to pay and might ask for a deposit upfront – this is typically 10% of their fee. Typical cost: £500-£1,500 + 20% VAT

Your solicitor submits searches to the local council to check whether there are any planning or local issues that might affect the property’s value. Typical cost: £250-£400

Valuation survey

This survey is done by the lender to make sure the property is worth the price you’re paying before they approve the mortgage.

It is not an extensive survey and will not identify all the repairs or maintenance that might be needed.

Typical cost: £150-£1,500 depending on the value of property.

Some lenders might not charge you for this, depending on the type of mortgage product you select.

The property survey

Home buyers who didn’t have the right survey faced a £5,750 bill on average after moving in, according to the Royal Institution of Chartered Surveyors (source: RICS).

You should commission a survey on the property to help you avoid hidden costly problems in the long run.

It’s your property, so it’s in your interest to pay for a decent survey at this stage. It can also help you to renegotiate the price.

For example, if the survey reveals a problem with the home that will need £5,000 to pay for repairs, you could ask the seller to lower the price by that much.

There are several types of survey available:

  • RICS condition report – basic ‘traffic light’ survey and the cheapest. It’s most suitable for new-build and conventional homes in good condition. No advice or valuation is provided in this survey. Cost: £250.
  • RICS homebuyer report – suitable for conventional properties in reasonable condition. This is a much more detailed survey, looking thoroughly inside and outside a property. It also includes a valuation. Typical cost: £400+.
  • Building or structural survey – the most comprehensive survey and suitable for all residential properties. It’s particularly good for older homes or homes that might need repairs. Typical cost: £600+.

Stage 4 – Finalise the offer and mortgage

  • It’s the stage where the lender will assess the documents required to apply for the mortgage, assess the valuation and issue the mortgage offer.

Finalising your mortgage

If everything has gone according to plan, contact your lender or mortgage adviser to proceed.

There is often a fee, usually called an arrangement fee, to set up the mortgage.

This can be added to your mortgage, but if you choose this option, bear in mind you’ll pay interest on it for the life of the mortgage. Typical cost: £0-£2,000.

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Stage 5 – Exchange contracts

  • If there are no problems or delays, then you should receive the contract to sign and complete the sale.
    At this stage, you and the seller are committed to the sale.
    Once you’ve exchanged contracts you’ll need buildings insurance in place to cover the structure of the property.
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Stage 6 – Completion and final steps

  • Congratulations – The remaining balance of money to buy the property will be transferred to the solicitor and they will finalise the sale and the estate agent will give you the keys!
    * Your Home may be repossessed if you do not keep up repayments on your mortgage.