mortgage application Archives

Nov 16

Consolidating loans into a mortgage

I am hoping to buy my first house, but I already have several credit card debts as well as a Student Loan. Could I consolidate those loans into a mortgage – or is that frowned upon by the Financial Institutions these days?

It is more than likely that any successful application for a mortgage will require you to repay your existing loans out of the monies advanced. By reducing your debts the mortgage company will be more confident that you can afford to make the mortgage repayments as your other loans will have been discharged.

The question will be, of course, whether or not you are able to borrow sufficient funds to cover both the purchase of the property and the repayment of your existing loans, which will inevitably mean that you will need to find at least 10% of the purchase price by way of deposit.

If you are able to consolidate your existing loans in this way then your overall borrowing will inevitably be cheaper.

Jan 28

Speeding up house buy completion

We have found a lovely property to buy where there are no chains, but my solicitor tells me it could still take up to three months to arrange a completion. Why does it take so long and how could we speed up the process?

Unless you are a cash buyer of a vacant property the average period for sale and purchases can range between six and 12 weeks. Without the need to obtain mortgage finance and with suitable co-operation from the sellers’ solicitors the turn-around of documentation can be done within 14-28 days.

If the property has all the valid searches in place then this period could be even shorter. The issues that take up the time in any transaction are the period required to process a mortgage application (between 4-8 weeks) and the period required to obtain up-to-date searches (10 working days).

If the property has structural issues or is semi-derelict then this will have a bearing on your mortgage application and survey and may result in retentions and the need for you to obtain further experts’ reports. Again, more time.

However, in a straightforward purchase of an ordinary property which is vacant with no chains and where you are a cash buyer with the benefit of all up-to-date searches in place, there is no reason why a completion cannot be made in a matter of 14 days.

Nov 26

Tieing in transactions all depends on timing

I have already exchanged contracts on my sale and have found a property to purchase. However I am due to complete my sale in a fortnight. Can I tie in the two transactions?

This will depend entirely on your seller and your Lender. On average a mortgage offer will take four to six weeks from application to issue, but some Lenders are more efficient than others. Provided the funds can be made available it also requires your seller to co-operate and assist you in completing quickly.

Finally, it is a question of paperwork and the legal aspects which, contrary to public opinion, can be done relatively quickly – provided all the other parties involved in the transaction work at the same pace as you and your legal advisors.

Provided the Lender expedites your mortgage application, the sellers’ solicitor is prompt with the issuing of contract papers, and your seller is happy for you to take occupation as soon as you want – then you have a chance!

Of course, if someone can lend you the money required to complete until your mortgage monies come through then you have a real chance.