With a mortgage offer in hand, you’re almost ready to complete and pick up the keys. However, you may be wondering what happens in the meantime. This handy guide will give you a behind the scenes glimpse at what is happening at each stage and what to expect.
The mortgage offer
We will notify you of your mortgage offer once we have received it from your lender. The offer means that the lender is happy to lend you the amount that we have discussed with you at your appointments. They will also have completed their final checks on your finances. These include verifying your income and running a full credit check, and valuing the property you want to buy.
Last chance for changes
We’ll send a copy of the offer to your solicitor or conveyancer, so you can both check the details. It’s really important to let us know if anything has changed at this stage, such as changes to
- Your income or employment status
- The purchase price of the property
Accepting your mortgage offer
Your solicitor or conveyancer will let you know if you need to do anything before signing and returning the mortgage offer to us. In many cases, you can sign your documents securely online – if so, it will include the details of how to do that with your offer.
Completing your purchase
After you’ve accepted your mortgage offer, your solicitor can start the final phase of buying your property. This means that they will agree a date to exchange contracts with the seller. The contracts set out your agreement. For example, what’s included in the purchase price as well as any terms and conditions that you and the seller are agreeing to. Your solicitor can answer any questions you have about exchanging contracts. In Scotland, the process is called an ‘exchange of missives’.
Exchanging contracts and completing
If you’re buying in England, Wales or Northern Ireland, this is the point at which you legally commit to buying the property. In Scotland, you’re committed once the respective solicitors reach ‘conclusion of missives’. Your solicitor will agree a completion date with you, which is usually the day you’ll get the keys – how exciting! To make sure that happens smoothly, make sure you have;
- The money for the deposit, if you’re providing one
- The money to pay your solicitor or conveyancer
- Any additional fees they tell you about, such as Stamp Duty
What if the seller tries gazumping the price?
If the seller attempts to increase the purchase price or tells you that they’re ready to accept a higher offer, we can’t give you advice you on what you should do – you will need to speak to your solicitor about that. Unfortunately it is legal and while your offer may have been accepted, the agreement between you and the seller does not become legally binding until contracts have been exchanged. However, if you want to understand your mortgage options before responding, please speak to us.
Make sure you’re covered
By this point we would have already spoken to you about arranging buildings, content and life insurance as your buildings cover needs to start on your completion date. If you haven’t already arranged home contents and life insurance, we would advise you to consider that now and we can look into this for you.
Start preparing to move
It’s getting closer to the date and everything may seem up in the air but as soon as you exchange contracts you can get a head start on planning to move out and move in. There’s a lot more to think about than getting packed up. However, don’t worry we’ve compiled a list of things to start thinking about.
Your moving checklist
Getting ready for the move
- Book a removals company – let them know about any large or valuable pieces of furniture
- Have a good declutter – recycle, donate or sell stuff you haven’t used in a while
- Start packing things you can do without until moving day
- Inform your gas, electricity and water providers that you’re moving
- Tell any companies you’re insured with when and where you’re going – this could affect your policies
- Use Royal Mail’s redirect service for your post, and talk to your phone provider about keeping your current number or getting a redirect for a new one
- Request a final statement for your council tax – you could get a refund
- Get your estate agent to ask the seller to leave all the manuals and warranties for electrical items, like the boiler, any alarms and domestic appliances
- See which TV and broadband services are available in your new area
- Research GPs and dentists in the area, and let the old ones know you’re moving
- Update your address with your employer
- It’s a good idea to have a phone or tablet with a data plan for the move, as you may not have broadband when you move in
- Consider writing some notes for the people buying your home – explain where to find the stopcock, meters and fuse box, how the boiler works, and label any keys for windows, doors and any garage
- Ask the agent to arrange the same with your seller
- Get parking permits for the removals company if you’re in a restricted parking zone
Moving in day and beyond
- Take final readings from your utility meters – you may be able to submit them online or by phone
- Update your details on the electoral register – this is really important for protecting your credit score
- Find the stopcock in your new home, and electricity and gas meters – take readings on moving in day
- Depending on your circumstances, update your contact details with HMRC and the Department for Work and Pensions
- If you’re a driver, contact DVLA to update your licence address details
- Check the council website to find out which days rubbish and recycling are collected
- Consider changing your front and back door locks for security
Want more information about the mortgage process? Please call 01634 968111 or submit an enquiry here.
