When you are going through your mortgage process, you will eventually reach a point where your dedicated mortgage advisor will run through something called a “mortgage illustration”.
A mortgage illustration is quite literally what it says on the tin. It outlines all the details of your mortgage. Your mortgage advisor will go over this with you once they have made their recommendation, prior to submitting the application to the mortgage lender.
You will always receive a mortgage illustration during the process. This applies for all mortgage types, whether you first enquired for remortgage advice or are looking to obtain a first time buyer mortgage.
Your mortgage illustration will reflect upon all the costs you will be paying for, such as your monthly mortgage repayments. It will also inform you of all the fees you will be paying, such as lender fees, broker fees and sometimes valuation fees.
It does not cover solicitors fees or insurances, as these are separate. A mortgage illustration only covers what is in the mortgage itself.
This document also gives details of both your lender and your broker, as well as other legalities that your mortgage advisor will go over in more detail with you.
No, you do not. Prior to the point of application, you have the right to turn down any recommendation we make. If you want us to go and find you another deal (perhaps you don’t want that lender for example), we are able to do this for you.
You also have the right to walk away if you’d like. This also means you won’t be paying any broker fees either, as we are only paid on results (this does not include lender fees). You are under no obligation to proceed with our recommendation.
Though we would like to give everyone a mortgage who asks for one if we could, nobody is ever guaranteed a mortgage. A mortgage illustration simply means you are eligible for the deal we have found for you.
We still need to submit your application to the lender and wait for them to formally offer you the mortgage.
Whilst being eligible and previously having an agreement in principle is a good indication of mortgage success, you can still be rejected for various reasons, such as a failed credit score on a hard search, incorrectly evidenced income, or issues with the property in question, to name but a few.
A mortgage illustration is not the same as an agreement in principle. Your mortgage illustration will go over the details of our recommendation, ahead of application.
An AIP lets you know that the lender has agreed, in principle, to lend to you (subject to change). This can be used to demonstrate to a seller of a property that you’re looking to buy, that you are serious and ready to go.