Frequently Asked Questions
What happens when I call De Havilland for Advice for a residential mortgage?
Initial conversation with consultant for assessment of most suitable mortgage and ability to proceed.
- Customer to complete Agreement in Principle which can be downloaded from our website.
- Within 24 hours we would expect to obtain a decision from a lender unless otherwise advised
- Consultant will contact client to discuss the options available and to answer any questions
- Arrangements will be made for completion of forms.
- Within 48 hours of forms being received together with said documentation the mortgage will be passed in to administration
- Client will receive a call from case handler and will be given timescales for processing.
- The case handler will update the customer by email or telephone
- Mortgage offer should be produced within 28 days subject to lenders service standards. Offers can be produced in a much shorter timescale these options will need to be discussed at the outset.
What if I am buying under an affordable housing scheme?
Well the processes is more or less the same but with a bit inbetween. Most housing associations like a recommended broker to not only arrange the mortgage for their customers but also complete a full financial assessment on their behalf to ensure that the property purchase is affordable. During a face to face meeting original documents are copied and certified by your consultant and a financial questionnaire completed and sent to the housing association. If you want a good carpet cleaner, then Fab clean carpet cleaning in Sutton would be our choice. The consultant will wait for approval from the housing association before your mortgage application is submitted.
So after our meeting how do I get a mortgage offer?
The fully completed Agreement in Principle OR CLIENT INFORMATION FORM ACCOMPANIED BY DOCUMENTS allows us to obtain a credit check and search on behalf of the customer and enables us to place the mortgage
- If the credit check is successful at this stage the lender will offer a “Decision or Agreement in principle” subject to certain conditions.
- The conditions will be primarily production of documentation to verify the information provided in the application together with all information considered necessary to satisfy the “underwriters” that the client is suitable for lending and meets their criteria. (please see attached list of required documents)
- A complete application must be made and all initially requested documentation must be provided. In Shared Ownership/Shared Equity and High Loan to Value cases many lenders will not look at a case until all data is provided. All fees for valuations must be made upfront via debit or credit card.
- Once the application process is completed and all documents presented, (Please be aware that it is required for original documentation to be seen and certified by a regulated person to satisfy proof of ID and Money laundering rules.) Then the case is passed to the admin department for processing.
- Once the application is flagged at the lenders end, dependant on current lead times, the case is passed to an UNDERWRITER, whose job is to look at the documentation and determine if everything is in order and meets their lending criteria. The underwriters may ask for any additional information at this stage and the sooner that this can be provided the sooner the case can be approved.
- Once the client is approved by the underwriters the property will have to be valued. Every lender will insist on sending a Valuer/Surveyor out to determine that the property is suitable collateral for their lending and assess the value of the property in line with market value and their own lending policy. This may mean that new builds are valued in line with second hand values, which will only be an issue if you are borrowing at high loan to values.
- If the Client is approved and the Valuation is acceptable to proceed with the mortgage then a mortgage offer will be issued.
- From this stage on your solicitor will take over the process and take you to completion.
What fees do I have to pay?
Broker Fees payable on application of mortgage as applicable
Valuation fees as detailed in section 8 of your mortgage providers Key Facts Illustration (KFI)
Arrangement Fees charged by each lender again as detailed in Section 8 of the KFI, often can be added to the loan; however this does affect overall costs.
Solicitors fees to be advised by each solicitor, often an amount is required to be paid upfront for “searches” that cannot be refunded.
Insurance is required to be taken out on each property where it is not already included in service charges. De Havilland can arrange this for you.
Stamp duty to be paid through the solicitor on completion. With Shared Ownership purchases there may be no stamp duty to pay dependent on the value of the share being purchased or it may be deferred.
If you are buying under a Shared Ownership or Shared Equity Scheme please note that the Housing Association in most cases will require
you to pay any fees upfront as do some lenders.
What happens if my Agreements in Principle is declined because I have adverse credit?
Where a case is declined, as per the data protection act the lender is not at liberty to disclose the reasons why. We will frequently be told that the client should get a copy of their credit file.
The sorts of issues that can get raised are as follows:
DEFAULTS – where a creditor has lodged an unpaid mark against you on with the credit agency, these stay for 6 years whether they are repaid or not and dependent on if an attempt to repay them was made and how quickly can affect the lenders decision if they are prepared to review their position on that.
COUNTY COURT JUDGEMENTS (CCJ) – where a creditor has taken the client to court over unpaid debts and the court has issued a judgement to pay. This again will stay for 6 years and further lending will be judged on the clients intent to pay this off.
BANKRUPTCY– Client has declared themselves bankrupt and will not be allowed to have proper access to a bank account or borrowing for a full year, after which technically they are free to resume business, however many lenders will insist on a longer period before they choose to lend again and may requires a few smaller lines of credit to have been taken out in the meantime to demonstrate suitable handling of repayments.
INDIVIDUAL VOLUNTARY AGREEMENT ( IVA) – when a client voluntarily enters into an arrangement with a debt councillor who liaises to achieve an acceptable figure to repay to creditors over a defined period. All debts are frozen and cannot increase. As with a Bankruptcy this situation makes lenders reluctant to lend, the best insisting that the IVA is proven to be being managed for some considerable time, or to have been repaid and several years to have elapsed with no further transgressions.
MISSED PAYMENTS –In some cases the lenders may decline because overall the credit score is low, this may be due to frequently missed payments indicatinf client is not handling obligations as effectively as the lender will requires or because there is little or no credit profile to go on, in the
case of never having had a loan, credit card or mortgage.
All these situations make a mortgage harder or more expensive to achieve, in the current credit crunch climate you would additionally require a substantial deposit to be offered a mortgage.
De Havilland Group Limited is a mortgage broker and their mission is to gather information from the client and assess the best possible mortgage deal available from the whole of the marketplace. To clearly explain the selected mortgage and answer any questions. We are intermediaries and are not responsible for the decisions that the lender’s underwriters make but we are here to provide a smooth service for the customer and assist in obtaining funds to purchase their property. Our job is to get the mortgage on the customers’ behalf
What problems can occur?
The most common problem we have is the client failing to provide us with correct and substantial documentation. The client is advised at the outset as to what they are to provide and this is required on completion and submission of the mortgage. Failure to do so will cause unnecessary delay and even the loss of the selected mortgage product.
Interest Rate Withdrawals
We are whole of marketplace brokers. Arranging a mortgage is probably the most significant decision we make in our lifetime, however, the market undergoes rapid changes which are oftentimes without notice and the recommendations can be subject to immediate withdrawal. Clients are advised to set aside adequate time to examine the recommendations and make a quick and firm decision..
Currently surveyors who are responsible for assessing the value of the property for mortgage purposes on behalf of lenders are faced with very turbulent market conditions. Their job is to present to the lender a fair value of a property and they base this on taking comparable evidence from the same
area that they are visiting and at least 10 properties of the same type, they then take a view and provide their valuation. There may be times when this valuation does not match the purchase price or indeed the remortgage value that the client was hoping for. It is unusual for surveyors to change their decision, however, if substantial comparable evidence can be provided the decision can be appealed. This can take another 2 weeks to process and the surveyor is not under any obligation to amend their figure.
When clients ask us to assist in remortgaging, their expectations on the value of their property are sometimes out of line with current market conditions. This will indeed affect the loan and the mortgage rate available and could change in the midst of the transaction when the lender’s surveyor comes back with a lower figure. We therefore strongly recommend that you obtain 3 comparable figures from 3 of the most common estate agents in your area and take a mean conservative average. We will then base all our investigations on this information.
Currently lenders are taking a more stringent stance on the loan to values that they are prepared to provide. This severely restricts us in where we can place your mortgage if you wish to buy a new build flat or house. There are still lenders providing loans of up to 95% of the value but we advise clients to have as much deposit as possible to give them a wider choice of products. We believe this is a temporary decision by lenders and will change once the market settles.