During the mortgage process, you will come across a “mortgage illustration”, but what is it? Although it can sound complicated, a mortgage illustration is simply a document that outlines every detail of your mortgage product.
As a mortgage broker in Leeds, we will be the ones who provide you with a mortgage illustration. The process works like so:
Your mortgage advisor in Leeds will run through all of this with you… So, especially first time buyers in Leeds, don’t panic!
For a quick, simple explanation of “what is a mortgage illustration”, watch the video below. For more videos just like this, head to MoneymanTV on YouTube!
Your mortgage illustration highlights the main details of the product, the costs of taking out the product, your monthly repayments, legal fees and sometimes valuation fees.
The main details of your product include who you are taking out the product with, the length of your fixed term and the interest rate.
Costs of taking out a product
With most types of mortgages, you will be charged a fee for taking out the product, however, depending on the product, you may not be charged a fee. This will be outlined in your mortgage illustration.
Your monthly repayments are how much you will have to pay each month for your mortgage. These will be calculated by the total mortgage amount, interest rate and fixed-term.
Legal fees include the services of a solicitor. Your mortgage broker in Leeds will talk you through this and the other costs involved before handing you over to the solicitors.
You will see details of property surveys and valuations fees inside of your mortgage illustration. These costs can change depending on the type of survey you choose to take out.
No, you do not. At this stage of the process, you have only been recommended a product, therefore, you are under no obligation to continue with it. In some rare cases, you may even want your mortgage advisor in Leeds to find you another deal.
If you choose to part with us and the deal, you will have to search elsewhere for another product.
Though we would like to, we would never guarantee someone a mortgage. A mortgage illustration is only an outline of your mortgage recommendation, therefore, you have not submitted your application yet and have not been approved by the lender.
Prior to receiving your mortgage illustration, you will have received an agreement in principle to show that a lender is willing to lend to you. This is not the same as a mortgage illustration.
This is also not a guarantee, they are agreeing in principle that you can provide sufficient evidence of your income and affordability. After your illustration, we will prepare your mortgage application with you if you want to continue.
As a mortgage broker in Leeds, it is our job to help you through the whole mortgage process. We will be on hand to answer any questions that you may have about the mortgage process.
Your free mortgage appointment includes a mortgage illustration. Book your free mortgage appointment online and we can get your process started today.