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Typical timeline Securing a mortgage for your off-plan property

6 months before

3 months before

Build completion day

5 months before

1-2 months before

Contact a mortgage advisor to arrange a mortgage pre-approval

Lender issues the formal mortgage offer (usually 3-6 weeks after the full application)

Receive the keys

Submit a full mortgage application

Solicitors conveyancing period and answering any final queries

ARRANGING A MORTGAGE

If you are buying a completed property it is advised that you arrange your mortgage before you exchange contracts so that completion can take place promptly, based on the current and applicable mortgage offer.

For off-plan purchases however, where there may be several months or even years until completion takes place, the earliest time you can apply for a mortgage is six months prior to practical completion.

At this point, you are advised to contact a qualified mortgage advisor, who will be able to recommend suitable lenders and the most competitive products to apply for based on your personal situation, budget and investment strategy. They will then apply for an Agreement in Principle (sometimes called a Decision in Principle) from your preferred lender.

Once Approval in Principle is granted, your mortgage advisor will begin the process of submitting a full mortgage application. They will request certain documents from you, including but not limited to the following:

proof of ID and residential address proof of current income property details for example the size, location and completion date proof of deposit and declaration of existing liabilities.

Upon receiving the full application, the lender will review and then underwrite the application and a surveyor will be instructed by the lender to ensure that the property is suitable for lending security and to determine the value of the property.

Once the application is approved then a formal mortgage offer is issued. This confirms the lender s agreed terms and rates and stipulates any conditions in the mortgage offer. It outlines the mortgage term, the maximum loan available and the interest rate, and any variations thereof.

The lender then sends a copy of the formal mortgage offer to your chosen solicitor, and instructs its solicitors to begin the conveyancing process, following which the property owner s/developer s solicitor issues the mortgage deed and legal charge, along with the lease for leasehold-title properties. They then conduct lease-restriction and bankruptcy searches and factoring charges are correct. If everything is in order they will then request the funds from the bank on the basis of the formal mortgage offer that has been issued.

The investor will then pay any remaining completion funds as well as their Land & Buildings Transaction Tax (LBTT) with the solicitor taking responsibility for distributing the funds among the various closing parties. Post-completion, the solicitor will register the property with the Land Registry. On the day of completion the investor will receive the keys.