Each enquiry we receive at Hour House is dealt with in exactly the same manner, from your initial contact through to the completion of your mortgage/remortgage request.
This section of the website provides you with an insight into the way that your enquiry will be handled, so that you know what to expect at each stage of the mortgage process.
1. Initial Enquiry - Discuss Client Needs
You have contacted us through our website and we will discuss your needs and any concerns that you have. We will explain how we work and how we are regulated.
We will discuss mortgage protection products with you. You are under no obligation to purchase any mortgage protection products. We will not 'hard sell' nor will we make purchase of a protection product a condition of the loan. We are duty bound by the Financial Services Authority to explain to you that these products are available and how they work.
2. Confirm costs and fees
We will confirm all of the costs involved and our fees. Until we have selected a specific mortgage product we will not know precise costs. We will explain when fees have to be paid and your entitlement to refunds etc.
We will complete our Personal Financial Summary (Factfind). This will give us all of the information we need to determine your needs and your ability to service the mortgage. If you are consolidating debts we will explain the effects and costs of adding short term debt to a longer term mortgage.
4. Proof of Identity & Residency
In order to comply with money laundering regulations we will need to prove both your identity and residency. This is, generally, done using your Passports and a Utility Bill.
The lender will want to see that your property is insured. We will require a copy of your current Buildings Insurance Policy.
6. Search the market for a suitable Mortgage
We are Independent Mortgage Brokers and we will search the market to find the mortgage product that best suits your needs. We will explain how we have made our selection and you can see the alternatives that are available.
7. Complete an Application
We will help you to complete the mortgage application form.
8. Submit Application with Valuation fee
We will submit the application to the lender along with any other information that the lender may require - ie Proof of ID and Residency - Proof of Income - Valuation Fee.
9. Surveyor values property on behalf of Lender
The lender will want the property to be valued by a qualified surveyor. You will have to pay for this unless we can find a lender that will pay this fee for you. The surveyor is looking to see if the property is suitable for mortgage purposes - ie it is in good condition and built using standard construction methods - brick/block + tiles/slates etc.
10. Concrete Screening Test
If the property was built before 1960 and concrete block has been used in the construction then the surveyor may insist that a 'concrete screening test' is carried out. This is to determine that the concrete block does not contain materials that are likely to undermine the integrity of the block and cause it to crumble/deteriorate and affect the stability of the property. This test has to be paid for by you but will be of benefit to you in the future if you ever decide to sell the property.
11. Offer issued by Lender
If the property is found to be satisfactory for mortgage purposes and once the valuation report and any other report is returned to the lender then an offer of mortgage will be issued. A copy of this will be sent to yourselves, your solicitors and our firm. This offer may contain conditions that need to be confirmed by the solicitor (ie that the property is adequately insured) or that certain work/repair should be carried out on the property within a certain period (ie Rentokil treatment of woodwork).
12. Solicitors initiate Local Searches
The solicitor may be instructed under the mortgage conditions to carry out local council searches to confirm that there are no plans afoot to build a supermarket or something similar close to the property that may have a detrimental effect on the value of the property. Solicitors are also often asked to complete drainage searches and environmental searches to confirm that the property is not on contaminated ground or an old 'landfill' site. If we are dealing with a remortgage then search insurance is often used which saves time and money and indemnifies the lender against something turning up that wasn't identified on the searches previously carried out when the original mortgage was put in place.
13. Contract of Sale issued by vendor's solicitor (purchase only)
The vendor's solicitor (in the case of a sale/purchase) will issue a Contract of Sale and your solicitor will read through this to confirm that it is in order. Your solicitor will discuss the contract with you personally and you will be required to sign this contract.
14. Solicitors agree a date to Exchange Signed Contracts
At exchange of contracts both parties are committed to completing the sale/purchase. At this time, if a purchase, the solicitor will often need a deposit (10% usually). If this is a sale and purchase (house move) then this deposit will often come from the purchaser of your property. If it is a remortgage then it is not applicable.
15. Solicitor draws down funds
Your solicitor will request the mortgage money from the new lender and also a redemption statement from your existing lender. If there is a shortfall he will require you to make up the difference.
16. Completion of Purchase/Remortgage
The solicitor will repay your current lender using the new mortgage money and any money from yourself. If you have capital raised then any surplus will be sent to you immediately. This can be sent by cheque or electronically transferred to your bank. If you are repaying other debts then the lender may ask the solicitor to settle those debts directly from the mortgage money. In most cases our fee will be paid direct to us by the solicitor at this time. You will be required to sign a letter of instruction to your solicitor in this regard.