Apply Mortgage loan process in UK


In the UK, where a home is bought, all cash can be free of the cumbersome procedures of mortgage lending, but some people choose to pay part of the initial period to stay and make other investments for more returns.This is a simple introduction to the mortgage lending process in the UK, but it is not in the imagination.
Mortgage lending in the UK is basically divided into two categories, namely, home mortgage and investment mortgage.The difference between the two is that there are different loans, and the mortgage is up to 80 percent of the home price, while the investment mortgage is only 75 percent of the home price.In addition, since the lending rates also have different living and investment, the investment interest rates higher than self living, different Banks or lending institutions to enter into a borrowing rates vary, suggest to ask a few more Banks, or by an independent financial adviser (IFA) for comparison.
There are three basically important steps in UK mortgage lending:
1. Loan rate estimation
Before preparing to buy a house, you should first make an assessment of the personal loan amount to determine what price you can buy the property. Need to provide proof of personal assets, proof of income for the past six months, proof of payment of the first phase and proof of identity, after receiving the information, the bank will conduct an initial assessment of the amount of loans the buyer can borrow.
The level of income has a significant impact on borrowing, and many banks can borrow up to about 4 to 5 times their annual income. Of course, the bank will also check your creditability, as well as spending levels, the past two years the bank will use the consumer records to balance your spending levels.
If your valuation of assets is not higher than 150,000 pounds, the loan amount can reach 80%; if it is 500,000 pounds, you can loan 75%; 500,000 to 10 million houses can loan 65%.
2. Buy and Inspection house
When the buyer knows his loan amount, he can choose the price by the price
The real estate.When you choose a house, there will be an inspection procedure before signing the sale and purchase agreement. It will be conducted by the buyer and the third party outside the bank.In addition to providing the quality of the property, the inspection report also has a property valuation, which will affect the loan amount of the bank.The inspection report generally takes a month, the cost is paid by the buyer.
When the valuation is larger than the current offer, the bank can refuse the loan.At this point, you will need to communicate with the owner, intermediary, etc., adjust the price or provide proof that the price difference is reasonable.Most of the time it won’t be too much of a problem.
3. To apply for a loan
After obtaining the inspection report, you can apply for a loan formally. The bank will approve the final loan amount and interest according to the property valuation and the buyer’s financial status. If the application is approved, the bank will issue an acceptance letter. There are application status, detailed terms and relevant interest rates and repayment period. The applicant must verify the relevant details, the buyer to accept all the conditions, the bank will sign the buyer’s contract with the buyer. You also have the right to opt out of the application, but the relevant agency will charge the applicant for the appraisal and administration fees. General application to be confirmed within 6 months, otherwise the application will be withdrawn.


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