Once you’ve submitted your mortgage application with the assistance of your New Homes Mortgage Adviser (NHMA), you’ll want to stay in close contact with them and your solicitor to understand fully the next steps.
These include:Mortgage offer and valuation
As part of the mortgage process, your chosen lender will organise a valuation of the property in the form of a survey. Once this has been completed and they have approved your application, they will make you a mortgage offer. It’s important that the valuation matches the price you have agreed to pay with the developer.
Solicitors Form 1
This needs to happen at least five days before contracts are exchanged.
Your solicitor must send this form to the Help to Buy Agent and include the following documentation:
- Confirmation of the mortgage offer
- The valuation
- Details of your cash contribution, i.e. your deposit
Approval for Exchange of Contracts
If everything is satisfactory, the Help to Buy Agent will approve the exchange of contracts. This will be done within three days of receiving the documentation, with the authority issued to your solicitor.
Exchange of contracts
Once contracts are exchanged, you’ll be in a legally binding agreement to purchase the property.
If you pull out at this stage, it’s likely you’ll lose your deposit.
This guide to mortgages was produced in collaboration with L&C Mortgages, the UK’s largest fee free mortgage broker and adviser.
Learn more about the legal steps of buying a new home.
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