The first step is to undertake an initial assessment, to find out whether you’re a desirable candidate for a mortgage and what the best approach to making an application should be. To do your initial assessment with HCM, sign up here and within 5 minutes you can request a personal, free assessment.
Fact Find Data Gathering
Once you have completed the initial assessment with HCM, you can proceed to the online fact find. You will fill out HCM’s quick and easy forms, submitting information about your situation, such as employment status, personal assets, credit agreements and outgoings.
Mortgage Sourcing and Recommendation
When you have provided all of the necessary information, it is time to speak to HCM’s experts! You will be contacted for a review with an HCM holiday let mortgage advisor. Your advisor will present their mortgage findings and research, providing you with the best mortgage options to suit your personal circumstances.
Document Gathering and Compliance
Once you have decided which mortgage you would like to apply for, you should gather together all of the required documentation. These documents will be checked for verification and compliance.
Expect to submit proof of personal identification, financial records, and information about your desired holiday let property. To see HCM’s information checklist, click here.
HCM will take charge of the application process for you, once all of your documents have been submitted. Once the application is submitted, providing that all of your documentation is correct and there isn’t anything unexpected after the valuation or underwriting, then you can aim for a mortgage offer in as little as three weeks. The actual time will vary based on the lender’s workload at the time.
Once the mortgage application is submitted, the lender will instruct their surveyors to book in a time to go and conduct a mortgage valuation of the property. If you have chosen a basic survey, then the surveyor will essentially check that the property exists and is suitable as security for the lender and will give an estimated property value. This information is for the benefit of the lender and often you won’t even see the results of the basic survey!
In most cases, your potential lender will start the mortgage underwriting in parallel to the survey process, to make sure things continue to move along at some speed. The purpose of underwriting is to assess the level of risk involved as lenders must be confident that you will not default on your mortgage and that you can afford the payments.
Mortgage lenders will generally look at your personal circumstances and check things like your credit history, rental income projections, employment status, and spending profile.
If you are successful in your application, you will receive a mortgage offer. It is important to go through your mortgage offer carefully and ensure that all of the details are correct. For example, check your personal information, the figures, and the mortgage conditions.
Exchange and Complete
Once you have accepted your mortgage offer, your solicitor and the seller will exchange contracts. This signals the moment from which you have a legally-binding contract with the seller, and you no longer have the option to withdraw from the purchase of the property.
The final step (and cause for celebration) is completion! You will be given a completion date, by which point you will be required to pay your mortgage deposit and any outstanding legal fees. Once the deposit has been paid, it is time to collect the keys to your new property!
Holiday Let Mortgages. Done.
Holiday Cottage Mortgages Limited is an Appointed Representative of Julian Harris Mortgages Limited, Julian Harris House, Musgrove, Ashford, Kent, TN23 7UN, which is authorised and regulated by the Financial Conduct Authority (FCA). Julian Harris Mortgages Limited’s FCA Register number is 304155. The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk
Your home may be repossessed if you do not keep up repayments on your mortgage. Pure holiday let, buy to let and commercial mortgages are not regulated by the FCA.