I am getting a mortgage – will this make buying a property more complicated?

Yes and No!  We are so used to dealing with buyers who need mortgage finance to assist with the purchase of a property that the process should be relatively straight forward if everyone is organised.

Does my Lender need a solicitor?

Yes they do.  The good news is that your Lender is usually happy to instruct the same solicitor as you.  Providing there are no regulatory or ethical problems with the Lender instructing us too, we will generally proceed on that basis, as it is generally quicker and more cost effective than a further party being involved in the transaction.  Each Lender will have a panel of solicitors who they are happy to use. In order to qualify for the panel, Lenders make enquiries of insurance arrangements and vet the lawyers generally before granting an appointment to the panel. We would strongly recommend that you check with your mortgage advisor that your chosen legal advisor is on their panel to avoid unnecessary delays and wasted costs .

Great- I have checked and you are on the panel- what should I do next

If you have agreed terms with your mortgage lender, you should ensure you tell them you will be appointing us as your legal advisors so the Lender has the point of contact to submit their mortgage instructions to.  This is the time to make sure that you have dealt with any paperwork requirements for your Lender. Have you returned that direct debit mandate? Have you explained where the deposit is coming from? Lenders will each work slightly differently, but we tend to find that in the main the mortgage offer is held back until they have everything they need.  Your financial advisor will be able to assist with ensuring you consider matters such as life policies or term assurance.

I have received my mortgage offer at last- what now?

If you have received your mortgage offer it is likely that your legal advisor will receive their mortgage instructions shortly too.  Unfortunately it is not sufficient to forward a copy of your offer to your legal advisor as the Lender provides formal instructions as well as a copy of the offer which your legal advisor will need to check through before progressing the transaction.

CHECK, CHECK, CHECK your mortgage offer and if you spot something with is incorrect, do not delay in contacting your mortgage advisor to rectify the mistake.   Also let you legal advisor know there has been a mistake. We commonly encounter errors ranging from an incorrect spelling of a middle name to the wrong interest rate being quoted in the offer.  We even see the wrong property address referred to occasionally. All administrative errors generally, but need correcting to avoid unnecessary delays. As mortgage offers are often the last awaited piece of documentation before proceeding to an exchange of contracts it is very important that any errors or problems are sorted out in a prompt fashion.

The mortgage offer will also contain several conditions, read these carefully- are there any unexpected extra conditions you are not happy with? If so , please raise with your mortgage advisor.  Have you thought about buildings insurance. If you are buying a house (and with some flats), it is likely you will have to arrange this. Obtain quotes now and ensure they meet your Lender’s requirements (again check with your mortgage advisor if unsure).  You must put the insurance on risk (start the policy) on exchange of contracts and it is always a good idea to send a copy to your legal advisor once the insurance is on risk.

I have noticed that my girlfriend needs to sign a legal document – why is this? She is not on the mortgage!

If you are intending on moving in with someone over the age of seventeen, Lenders will routinely require that the person sign a formal legal document which put simply ranks any interest they may have in the property behind that of the Lender.  This document becomes important should the Lender seek to repossess the property for example if you do not keep up payments. Generally the person will need to obtain independent legal advice before signing the document. If all parties are content to proceed, the person moving in should make an appointment with a legal advisor to sign the document.  They will need to take their ID with them.

What are you doing in the meantime?

We will be considering the mortgage instructions.  Please bear in mind that we will need to comply with these fully before recommending the Lender advances monies.  In short if there is a problem with the title or the searches or anything else, this must be remedied to the Lender’s satisfaction before the matter can proceed.  We or any other legal advisor are not being difficult just doing their job.

Will I have to sign any documents before the Lender advances the money?   I have dealt with so much paperwork already!

Buying a house creates massive amounts of paperwork- digital or otherwise.  Sorry, but yes there will be paperwork to sign. You will need to sign and have witnessed a legal charge document (mortgage deed) which will need to be returned to your legal advisor to enable the registration process to be completed at the Land Registry.  Your legal advisor will explain how to have the document witnessed (occasionally your Lender will require this is witnessed by a solicitor) so do read that letter carefully. If the deed requires a solicitor witness and we are acting for you, please make an appointment with us to avoid additional legal costs.

Will the Lender send me the money? How does it work?

No, the money will be transmitted to your solicitors’ client account, or occasionally the seller’s solicitors’ client account.  Once a completion date has been agreed (usually upon exchange of contracts) the Lender’s/your solicitor will submit a request for mortgage funds to be received on a designated date (usually the day before completion to be on the safe side).  If there is a further balance owing to make up the monies from you, your legal advisor will also request this sum to arrive in good time too. On the completion date the total amount required to complete will be transmitted to the Seller’s solicitors’ client account.

Great- so following completion do I need to do anything else?  Apart from pay the mortgage of course!

Making the mortgage repayments is of course “a must”, but bear in mind that your mortgage offer will have contained lots of conditions, which you must continue to comply with.

From our side of things, your legal advisor will deal with registration of the legal charge (mortgage).

Enjoy your new home!!