Help with mortgage application

[Aoileen]

Hi all

Am in the process of completing a mortgage application and am having some problems that I hope someone can advise me on. Have spent day on net researching and have come up with nothing

Q.1. What is vacant possession?

Q.2. What are stage payments?

Q.3 Do I still need to get a valuation done if its a new build?

Q.4. I want a variable rate tacker. Do I tick variable and tracker or just tracker?

Q.5. Are there normally any penalties for early repayment on a tracker?

Q.6. Form requests name of mortgage protection policy company and estimated premium. Is this not something I do after I get mortgage approval?

Q.7. In the mortgage amount required section, there is a list of things to complete ie. purchase price, build cost, site cost etc. and one of the items listed is equity? What does that mean?

Thanks in advance!

 

[ClubMan]

Q.2. What are stage payments?

Only relevant if it is a self build and you draw the total mortgage amount down in stages.

Q.3 Do I still need to get a valuation done if its a new build?

Yes - the lender will require a valuation survey but try to get them to do this and pay for it. Any detailed structural survey or snagging survey is your own concern and nothing to do with the lender.

Q.4. I want a variable rate tacker. Do I tick variable and tracker or just tracker?

Just tracker I presume.

Q.5. Are there normally any penalties for early repayment on a tracker?

For owner occupiers only fixed rate mortgages can charge such penalties.

Q.6. Form requests name of mortgage protection policy company and estimated premium. Is this not something I do after I get mortgage approval?

You need this in place before the loan is drawn down but don't arrange it months in advance or anything like that! Ditto for home/buildings insurance.

Q.7. In the mortgage amount required section, there is a list of things to complete ie. purchase price, build cost, site cost etc. and one of the items listed is equity? What does that mean?

Probably not relevant other than for self-builds?

If you don't understand the form then you should really just ask the lender. Do you definitely need an actual loan and not just loan approval in principle right now?

 

[Aoileen]

Thanks for all that Clubman.....your a life saver!

I need loan now as property I own went sale agreed on monday last. Had hoped for a better price and planned on just getting a personal loan for around 40K thats why I never applyed before. Now I need 70K so mortgage it is!

I emailed broker with my queries and got no reply back. When I phoned she was on annual leave which explains no response. Need to get it sorted asap so didn't want to wait until Monday to speak to her.

All documents are present and correct so its just the form delaying me now!

Thanks again for all your help

 

[PM1234]

Q.1. What is vacant possession?

This means the property is being sold on the understanding that the property is available to move into immediately ie current tenants if applicable will have moved out prior to cheque drawdown.

If buying a pdh it is assumed this is the case. It differs for buy to let properties.