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A step-by-step guide to the mortgage process
Posted: 18th Aug 2015

If you are thinking of buying a new home, remortgaging, or require additional borrowing, the first thing to do is give us a call to find out what we can offer. We will be happy to talk through your options and if we think we can assist, arrange for you to speak with one of our Mortgage Consultants who will provide a fully advised service for you.

The following breakdown provides an idea of the process at Ipswich Building Society:

1. Contact our friendly Sales Team to discuss your enquiry. We will collect your basic details and arrange a telephone appointment in order to complete a basic income and affordability assessment, before booking you an appointment with one of our Mortgage Consultants either over the phone or in one of our local branches.

2. The Mortgage Consultant will ask a range of questions to assess your needs and circumstances and recommend a suitable repayment method, mortgage term and mortgage product from within our range. If you are happy with your recommendation we will complete a credit search and if approved provide you with a Decision in Principal, along with a European Standardised Information Sheet (ESIS) which will provide the full terms and conditions of the recommended scheme and expected payment levels. If you are moving home we will also provide a Mortgage Certificate which you can use when you are house hunting, to confirm you have spoken to a lender about obtaining a mortgage.

Our Mortgage Consultants can also provide direction in regards to protection solutions which will help to safeguard your future, and home insurance.

3. Once you have found a property we will provide you with a mortgage application pack, once you have returned the required documents to us we will then submit your application to our in house underwriters. At this point the Society will require the following documents for each applicant:

Identification (one of either:)
- UK photocard Driving Licence
- Valid Full UK Passport

If you do not have either of these please speak to us for guidance on what alternatives we may be able to accept. In addition, we will also require:

- Last 3 months payslips and P60 for employed applicants
- Last 2 years accounts and self assessment tax returns (SA302’s) for self employed applicants
- Last 3 months bank and credit card statements

Depending on the type of application, we may also request further items on a case by case basis. For applications by post, please do not send original documents, certified photocopies will suffice. Please speak to us for guidance around who can certify your documents.

4. We will contact you to collect any applicable fees relating to the application, after which an individual underwriter will complete a full assessment of your application, taking into consideration the merits of your own individual circumstances.

To process your application we may also undertake the following enquiries:
- Employer's reference in order to obtain confirmation of your income
- Landlord's reference(s)
- Lender's reference
- Accountant's reference (for self-employed applicants)

Note: When you sign the declarations within your application pack you will be authorising the Society to carry out the above enquiries.

5. A valuer from our nominated panel will arrange to visit the property to carry out a valuation on the Society’s behalf (see 'The Valuation').

6. If the Society is happy to lend we may provide you with a conditional mortgage offer, once the conditions of this offer have been met we will then issue you with a binding mortgage offer. The binding offer is our commitment to lend and will only be withdrawn if there is a significant change in your circumstances. If you are happy to proceed after receipt of your binding mortgage offer your mortgage, we ask you to return the second signed copy of the mortgage offer to us.

Once you have received a binding mortgage offer you have a 7 day reflection period which gives you the opportunity to consider the offer, however you do have the option to waive your right to this within the 7 day time-frame and commit to the offer provided. If you wish to do this, please ensure that you complete the waiver form which will be included with the offer pack.

7. Your chosen Solicitor will also receive a copy of the mortgage offer and will now be able to advise you when you will be able to exchange contracts.

8. When your Solicitor has completed the legal work, they will let us know when to release your mortgage funds. (This date is known as your mortgage completion date.) Your first Direct Debit will be collected on 1st of the month following your completion (if you complete after 20th of the month your first Direct Debit will be 10 days after completion). There will also be a payment for the period from the date of completion to the end of the month, (known as your initial interest payment) this payment cannot be collected by Direct Debit. Shortly after completion you will receive a letter from us confirming your monthly mortgage payments, and the initial interest due.

Throughout the process you will have a named contact to answer any questions you may have and explain anything which is unclear.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Your home may be repossessed if you do not keep up repayments on your mortgage.