After a reasonable period of living with rent or with your parents, the need arises for your home, which you can decorate as you like and call it "Home". You start asking for mortgage advice in London to research how you can purchase your apartment and discover that there are two options: the mortgage loan or the first home loan. However, the dilemma arises when you have to make the actual choice, especially if you have yet to learn what each financial instrument entails. That is when you should talk to a mortgage broker in London.

The financial comfort of apartment owners is enhanced by finding the best financing method. You've probably heard of mortgage credit, but do you know what it is exactly? A mortgage is a loan intended exclusively for a home. Through it, you can purchase a home in London, but you can also use it for its construction or renovation. What defines a mortgage is the mortgage, which is placed either on the property for which the loan was made or on another. This mortgage guarantees the bank; the property can only be sold once the loan is repaid.

How Long Does It Take to Approve a Mortgage Loan?

The mortgage loan approval period varies from one bank to another. The following factors can influence this:

• Bank's internal procedures – the bank must analyze your submitted documents and approve them at a branch or centralized level
• The bank must analyze whether you qualify for the desired amount,
• Documents of the mortgaged home - a mortgage broker in London can help you with that,
• A busy period for the bank can increase your waiting time
• Appraiser availability – an appraiser from the bank will inspect the mortgaged home on-site to determine its value according to pre-established conditions used by all banks.

What Are the Conditions for Granting a Mortgage Loan?

The conditions for granting a mortgage loan may differ from one banking institution to another, but those that can be found at any bank are also those imposed by local legislation. First, the person applying for the loan must be of age. Secondly, for the maximum degree of indebtedness, other unpaid loans are also considered, and the incomes that are calculated are only permanent ones. For example, it does not count if you receive money from friends or relatives, even if this happens repeatedly. Things can go easier if you ask for mortgage advice in London.  

Another essential condition in granting a mortgage is the applicant's payment history. If the person applying for the loan has a history of unpaid obligations, the bank may refuse to give the loan. Generally, mortgage loans are given to people with a maximum age of 65 at the time of loan completion. A mortgage broker will tell you that for this loan, as well as for others, the bank also considers the partner's income if the applicant is married, and this can be advantageous in terms of the maximum amount that can be borrowed.

Documents Required for Signing the Contract

When you have decided which house you want to buy, you must make sure that the owner has all the necessary documents for sale (property deed, tax certificate showing that the owner is up-to-date with payments to the state, the cadastre, the tabulation, the energy performance certificate, issued by a certified energy auditor, and in the case of apartments, the certificate issued by the association of owners or tenants showing the state of maintenance debts). The land deed extract is obtained through the notary after submitting all the necessary documents for the transaction.

If everything is in order, the final price is set (sometimes, the seller leaves some of the cost when it is clear to him that the transaction is completed). A pre-contract is signed, which may also involve the payment of an advance to the seller, depending on the negotiations between the seller and the buyer. It must end for at least 30 days, considering that the process of granting credit is often complicated and many people need mortgage advice. The pre-contract can be skipped if the buyer has all the money and the transaction can be signed immediately.

The final phase consists in signing the contract at the notary, where the mortgage broker can accompany you (with a prior appointment) and pay the related fees (as a rule, it falls to the buyer, so he has the right to choose his notary office) and then follow the formalities of registering the house in the name of the new owner with the authorities in the field. Salary is the main factor determining the amount the bank can lend you, mainly since it reflects your ability to support and pay the monthly installment.

Other Things to Consider when Applying for a Loan

At the same time, seniority in the field of work also matters, but both forms of credit impose the same rules. To be able to apply for a loan in London, you need to have an uninterrupted year on your work record and 3 or 6 months at your current job. There is no difference between the mortgage and the First Home in this situation. Both financial instruments are flexible from this point of view. You can apply for a mortgage or the First Home program, even if you are single or just in a simple relationship, without being married.

How you buy your apartment is significant, especially since the mortgage program has several advantages and disadvantages, which you must weigh with great responsibility. Remember that your life partner can become a co-payer or co-owner without being legally married. But, once you have decided with which form of credit you choose to buy your apartment, all that remains to be done is to select your future house if you need mortgage advice and get ready to enjoy a comfortable and welcoming apartment or house for you and your loved ones.

Publication: 03/08/2023 13:20