The Mortgage Offer explained and available solutions from Shire Direct!
The Mortgage Offer, a formal offer of advance from the lender to the borrower, is an integral part of the house buying process.
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Here we provide a detailed explanation of the Mortgage Offer, and answer some of the questions we get asked regarding Mortgage Offers.
Table of Contents:
When does the Mortgage Offer take place?
The lender will make their formal offer of advance, ie Mortgage Offer, once they are satisfied that:
- You as a borrower have the appropriate income levels, and are able and capable of making the contractual mortgage repayments,
- Your financial conduct history is acceptable and within their lending parameters, and
- That the property you wish to purchase (or remortgage) is adequate security for the loan.
What if the Mortgage Offer is delayed?
Our processing standards and procedures at Shire Direct are stringently monitored and geared to ensure that a Mortgage Offer is produced within a reasonable timeframe. However, there are inevitably situations that may frustrate or delay the issue of a Mortgage Offer, and we always work closely with our customers and keep them advised of potential delays. Sometimes a customer's intervention can speed matters, especially as some third parties will react more positively to a customer's request than anyone else!
What about exchanging contracts?
Until your legal representative has received a copy of the Mortgage Offer from the lender, he will not allow you to exchange contracts with the vendor (the person selling the property). This is because once you have exchanged contracts, you are legally bound to proceed with the purchase. Thus, if for any reason matters come to light to adversely affect the lender's decision to issue, you will not have committed yourself to a purchase that may not be in your interest to proceed with.
The reasons a lender may not issue an Offer of Mortgage could include one or more of the following reasons:
- The property may be structurally deficient
- The property may not be suitable for lending purposes because of the area in which it is situated, and may prove to be difficult to sell on in the future, for example because it has been built in an area susceptible to flooding, or there are a large proportion of boarded-up properties in close proximity
- Income checks have proved to be inadequate
Once issued, can a Mortgage Offer be withdrawn?
In some circumstances, yes!
However, you should be assured that these instances are very rare. The main reasons why a lender may withdraw a Mortgage Offer is if they discover the application or information upon which they have based their decision, is found to be fraudulent.
So, if you feel we can assist you with your requirements, why not contact us online or please call one of our friendly qualified Mortgage Advisors on Freephone 08000 282 281 - our lines are open everyday from 8am until 10pm.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.