We’re now halfway through our 12 step blog to mortgages – and what a journey it’s been. Hopefully by now you should have (some sort of) an idea of what mortgage you are going to pursue with, and what details you need to do get in order beforehand.
So you’re credit rating is in check, you been monitoring your spending for a while to make sure you leave a healthy amount in the bank at the end of the month and you’ve saved for a deposit. What next?
It’s time to get an agreement in principle (AIP). This is a credit score/credit search to pre-approve the mortgage subject to finding a property and providing the lender with any supporting documentation such as payslips.
An agreement in principle costs nothing and doesn’t obligate you to take out a mortgage with that particular lender, however be aware – every lender you go to and ask for an agreement in principle will do a credit check and the more credit checks you do, the poorer your credit score will become.
This is really where an independent adviser can make a world of difference. With access to hundreds of mortgage products, some which might not be available from the lender directly, they can match your specific requirements with the best deal for you across hundreds of different lenders before providing the agreement in principle.
The benefits of using an adviser:
• They can help you look beyond the interest rate and properly compare the overall cost of the mortgage
• They may have exclusive access to deals including lender-direct deals
• They will only recommend a mortgage that is suitable and affordable for you. This could also help speed up the process because you’re less likely to waste time on applications
• An adviser may help you do some of the paperwork and speed up the application process
• If you buy based on an adviser’s advice you have more rights if the mortgage turns out to be unsuitable for you
• An adviser is much more likely to be able to be able to assist you if you have a poor credit rating or need a specialist mortgage, such as buy-to-let.
Be sure to quiz your adviser on every aspect of the mortgage including upfront fees, early repayment penalties, lump sum payments, insurance and the small print. Also, don’t forget to ask how long your agreement in principle will be valid for.
At the end of your meeting with an adviser, they will provide you with a Key Facts Document which sets out the total cost of the loan including any up-front fees.
To arrange your agreement in principle and take a step closer to buying your dream home, book an appointment with Credius today on 0207 562 5868 or email email@example.com. If you’re feeling cautious and want a bit more information why not check out our website? www.credius/mortgages.