The Mortgage
A mortgage offer must be received by a buyer’s lawyer before proceeding to the Exchange Process.
The Mortgage Offer will set out the product terms you have chosen which could include, but is not limited to:
- The mortgage term
- The amount being borrowed
- The repayment type
- The interest rate
- Early repayment charges
You should speak with your Independent Financial Adviser to ensure that the most suitable mortgage product is chosen for your individual circumstances.
This is likely the biggest loan you will take out during your lifetime so it is important that you read and understand the Mortgage Offer’s special conditions.
On receipt of the Mortgage Offer, the buyer’s lawyer (and also the buyer) should review the offer in detail to ensure its accuracy and that it contains the relevant information. This prevents issues further down the line – when requesting mortgage funds and when registering the mortgage at the Land Registry. Potential errors on Mortgage Offers include not having your middle name detailed, a mistake with the property address or even the wrong purchase price.
This is likely the biggest loan you will take out during your lifetime so it is important that you read and understand the Mortgage Offer’s special conditions. Any questions or queries should be raised with your lawyer and/or Independent Financial Adviser.
The Mortgage Offer is not triggered, and the funds are not drawn down, until a Certificate of Title is sent by your lawyer to the lender. The buyer’s lawyer is required to investigate the title to the property from a legal perspective and, in order to provide the Certificate of Title, they will have reviewed the information at hand in conjunction with either the UK Finance Lenders Handbook or the Building Societies Association Mortgage Instructions – as these set out the instructions and specific requirements of each individual lender.
A Certificate of Title will usually be submitted on Exchange of Contracts and will notify the lender of the date on which the funds are required, usually the working day before the completion date.
