Purchase

Whether a 1st time buyer or a new purchase the process follows down a similar route. Firstly the lender will want to confirm your ability to repay the mortgage requested so they will perform a credit check on you to confirm your ability to borrow and to what amount. Following this they will then want to access the property by means of a survey to ensure that the loan is secured against a suitable asset.

On completion of these tasks and assuming the lender is happy with both outcomes they will issue a formal mortgage offer which is signed by you and passed on to your solicitors to then liaise with the current property owner to exchange contracts and complete on your purchase.

Typical types of mortgage are capital and interest (Repayment) and Interest Only (which will normally require nomination of a qualifying repayment vehicle, although many lenders no longer offer this basis as an option).

In all types of mortgage the higher the deposit (Equity) you have to put into the property generally the lower the rate of interest on the mortgage.

See also: Remortgage, Buy-to-let