Mortgage FAQs

My mortgage has been offered, do I need to do anything?

Your Mortgage Offer will be checked over by one of the team here at Planet Mortgages. Once we have ensured that all the details are correct, we will send it to you. However, your Mortgage Offer is an important document, so we always recommend that you read it yourself.

My Mortgage Offer states a different first payment to what the broker gave me?

Your first month’s payment may be higher than the agreed payment. This is normal. This is because the lender is assuming a move in date. Your lender will always write to you to confirm the correct first payment, but, please know that you will be no worse off because of the increased payment. This is because you will pay pro-rated – for the first month, meaning, if you are moving in on the 15th of the month, but the first payment isn’t coming out until the 30th of the following month, you are essentially paying for 6 weeks as opposed to the standard 4-week month.

Do I need to accept the offer and send it back to the lender?

Not all lenders require the offer to be sent back to them. If the lender provides you a signature page and instructions on sending the offer back, then they will need it.

What happens if I take out any credit? Can I do that now?

Once you receive your mortgage offer, we strongly suggest that you do not take ANY form of credit out, at all. This includes credit cars, loans, hire purchase agreements, and even 0% finance on anything. This is because the lender can conduct another check on your file, and any credit will show, and this could impact the lender’s decision.

What does exchange mean? And is it the next step now?

Yes. The next step is to exchange. However, depending on how fast we achieved your Mortgage Offer, this could potentially take some time. We would allow up to 6 weeks for this, in some cases. The phrase ‘exchange’ means that yourself and the vendor will exchange contracts. This will be done via your chosen solicitor. Once you have exchanged contracts, you are legally liable for the mortgage debt.

Do I now need to put my protection (insurance) in place?

Yes, this is when your protection goes live. Exchanging contracts is legally binding which means that you are liable to pay your mortgage under any circumstances. Therefore, having appropriate protection in place is important. Here at Planet Mortgages, we will take care of this for you.

What happens if I don’t complete before my Mortgage Offer expires?

If your Mortgage Offer is about to expire, and you are yet to exchange and complete, then we will speak to the lender for you about extending/re-offering your case. Depending on the lender, there may be a valuation and/or administration fees payable for this service. Just to be clear, these fees will NOT be charged by Planet Mortgages, but rather, from the lender directly.

I can’t believe I’m about to complete! What do I need to do now?

At this stage you will be in regular contact with your solicitors about a completion date. This is the day that the mortgage funds will be sent, via your solicitors, to their intended recipient (normally the vendor’s solicitors). You just need to make sure you have removal companies (if you’re using them) ready to move on completion day!

My broker, and my Mortgage Offer, mentioned cash back. I haven’t had this yet. When will I receive it?

If you have a product that offers cash back, then this will be transferred in addition to the mortgage funds to your solicitor. In most cases, your solicitor will offer you the option to have the money taken from their final bill. This is often a lot easier than the solicitor sending you the money for you to then settle your final bill with them.

Is this the day I get the keys?