It is quite common that we will face the problem of money shortage, and when it’s happens, most people would turn to mortgage loan as it is a much easier way compared with credit loan, and for mortgage loans, the most popular one is housing mortgage
Mortgage loan is a kind of loan that the borrower guarantees to a bank with an certain item, that item can be real estate, vehicle, stock etc. Mortgage loan is protected by loan, hence the borrowers need to pay off the loan before the mortgage date due, otherwise the bank will be authorized to trade the mortgaged item for consumption, and in some countries, borrowers not pay off the mortgage loan before the agreed date will have bad record or blacklisted for loan.
According to the BBC, the average amount of housing loans in February this year was £ 119,000, with an average British annual income of £ 26,500. For those who earn an average salary, the mortgage is not expected. Still, in the past 12 months, the number of young people loan to buy house has soared.
The UK Mortgage Lenders Association says this is mainly because house prices are soaring and people are afraid of being forced to squeeze into the housing market later. “Mortgage fever” continues. So, what is the policy for loaning for house and how to apply for it?
What documents you need for apply housing mortgage loan?
- Your ID passport;
- Bank statements from last three months (online banking statements not applicable);
- Salary statements from last three months and the latest tax certificate form;
- If the lender is self-employed, the recent United Kingdom Customs and Excise Service (HMRC), the financial reports of the last three years and and the Tax calculation form (SA302) are required, which apply to the applicant for the tax return;
- Bank statement of deposit (proof that the applicant has enough money to pay off the mortgage).
How to apply for mortgage loans?
- The buyer provides the bank with a personal certificate of assets, a proof of income, and a proof of identity. After receiving the information, the bank will make a preliminary assessment to determine the amount of the buyer’s loan. Ensuring good asset credit is critical to lending. In fact, all unsecured debt will be included in the bank’s assessment of lenders, any credit card arrears or loans will reduce the amount of credit. Time Required: The initial assessment process can be completed in about a week, starting from the date that the bank received the buyer’s documentation.
2, Site check by the buyer, inspection room If the bank gives the preliminary assessment results in line with the actual needs of buyers, then buyers can enter the actual room, buy the link.
The inspection report not only describes the quality of housing and other relevant information, but also gives a corresponding valuation, which will determine the amount of final bank loans.
3, loan approval, money release. After receiving the report, the bank will give the buyer the final line of credit on the basis of the valuation of the report, combined with the buyer’s financial position. It always take about 1-2 weeks.
To know the loan interest rate, loan ratio, etc.
Housing loans in the United Kingdom are generally divided into two types of home mortgage loans and investment real estate loans.
The ratio and interest of the loan will vary depending on the value of the property and the type of loan. Different banks have different mortgage products and interest rate. To apply for housing mortgage, the applicants needs to have a deposit, a good credit record and stable income. And when all is ready, almost all banks make loan estimates based on the loan-value system, which means that the less money a lender has, the more it will be. In addition, most banks will charge a loan fee, and this is always paid when the loan agreement is accepted. The specific amount depends on the amount of the loan.