Mortgage FAQs
“What documents are required for a mortgage application?”
To secure a mortgage, lenders typically require several key documents to assess your financial situation and eligibility. At Liddington Mortgages, we guide you through gathering the essentials:
Your last three months' bank statements
Your last three months' payslips
Valid photo ID (Passport and Drivers Licence)
Your credit report
Latest year's P60
Proof of deposit.
Utility Bill dated within the last three months, showing full name(s) and address
If you're self-employed, you'll also need the last two years of tax calculations and tax year overviews. Additional documents may sometimes be necessary.
Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
What is Conveyancing?”
Conveyancing in the UK refers to the legal process of transferring property ownership from the seller to the buyer, ensuring all legal, regulatory, and financial aspects of the sale are correctly handled. Essential for both buying and remortgaging, conveyancing typically includes searches, contract drafting, managing funds, and registering ownership with HM Land Registry.
From securing an Agreement in Principle (AIP) to final completion, buying a home generally takes 8-12 weeks, although this can vary.
At Liddington Mortgages, we collaborate with reliable, professional conveyancers who are prompt and efficient. These key factors may, where possible, contribute towards streamlining the timeline.
“What’s a Mortgage Agreement in Principle (AIP) and do I need one?”
A Mortgage Agreement in Principle (AIP), also referred to as a Decision in Principle (DIP), is a provisional confirmation from a lender of the amount they are likely to lend you based on a preliminary review of your financial circumstances. This initial assessment includes a credit check, as well as an overview of your income, outgoings, and other financial commitments. While the exact terms of an AIP may vary from one lender to another, most are typically valid for about three months. However, some lenders offer shorter or longer durations depending on their policies.
Securing an AIP before you start viewing properties has several benefits. It provides you with a clear idea of your maximum borrowing capacity, helping you to set a realistic budget and focus your property search. Additionally, an AIP puts you in a proceedable position with sellers and estate agents, indicating that you are a serious buyer with finance already considered. This can also give you extra negotiation leverage when making an offer, potentially improving your chances of securing a property at a favourable price. Click HERE to start your AIP.
“How long does it take to get a mortgage?”
Getting a mortgage typically takes around 1-6 weeks from the Agreement in Principle (AIP) stage to receiving a formal offer. After securing an AIP, which often takes just a day or two, the lender will arrange a property valuation to confirm its value, which can add another week or two to the process. Once the valuation is complete, and assuming all documentation is in order, a formal mortgage offer is usually issued within 1-2 weeks. However, timelines may vary based on individual circumstances and lender processing times. For a smoother, quicker mortgage process, working with an experienced mortgage broker can make a big difference.
“What is Commercial Finance”?
Commercial finance refers to a range of financial products designed to support businesses in funding their operations, growth, and investment opportunities. In the UK, this can include business loans, asset finance, invoice finance, commercial mortgages, bridging loans, and trade finance. Business loans provide lump-sum funding for various purposes, while asset finance helps businesses acquire or lease equipment or vehicles. Invoice finance allows businesses to access cash tied up in unpaid invoices, improving cash flow. Commercial mortgages enable the purchase or refinancing of business premises, and trade finance facilitates international trade by funding imports or exports. Each type of commercial finance is tailored to meet specific business needs and objectives.
The Financial Conduct Authority does not regulate secured or commercial lending. This service is offered by referral to a third party.