What is a Mortgage Illustration?

Mortgage Illustration Hull

A mortgage illustration is one of the first items that you will receive during the mortgage process. What is a mortgage illustration though? Although it sounds complicated, it’s really not!

Simply, a mortgage illustration is a document that outlines every detail of your mortgage deal. So, when your mortgage advisor in Hull recommends a product, they will also show you a mortgage illustration showing everything there is to know about that product.

As a mortgage broker in Hull, our process to get your mortgage illustration works like this:

1. Once you book your free mortgage appointment online, you will be paired with a mortgage advisor in Hull. This advisor will specialise in your situation.
2. They will search 1000s of mortgages on your behalf to try and find the best one for your circumstances. Once they find the perfect deal for you, they will recommend the product to you.
3. During this recommendation, you will also receive a mortgage illustration outlining the deal.
4. If you are happy with the deal and want to continue with us, we can start to prepare your mortgage application.
   

This process will be described by your mortgage advisor in Hull once you get in touch. Our mortgage advisors have been helping first time buyers in Hull, for over 20 years now, and they will be able to simplify it for you as much as possible.

For a quick answer to “what is a mortgage illustration”, watch the MoneymanTV video below. For more mortgage tips and explanations, check out our channel. Make sure to subscribe whilst you’re there!

What is included in a mortgage illustration?

Your mortgage illustration will include the main product details, costs of taking out the product, monthly repayments, legal fees and sometimes valuation fees.

Main details

The main details that will be included in your mortgage illustration are the length of your fixed contract, who you are taking out the product with and the interest rate.

Costs of taking out a product

Almost every mortgage includes a cost for taking it out. You may be charged for the mortgage you’re looking to take out, and if you do, this cost will be outlined in your mortgage illustration.

Monthly repayments

Monthly repayments are how much you will be paying each month for your mortgage. These costs will be calculated by your total mortgage amount, interest rate and fixed term length.

Legal fees

Legal fees include the services of a solicitor. As a mortgage broker in Hull, we will talk you through these costs before passing you over to them.

Valuation fees

Most properties will require a property survey before you can take a mortgage out on them. If you require a property survey, these valuations could be included in your mortgage illustration. This can change from property to property.

Do I have to agree to your mortgage recommendation?

No, you do not have to take out your recommended product. It is a recommendation for a reason. Your mortgage advisor in Hull will have carefully selected this product for you and would have tried to find a deal for your personal and financial situation.

You are under no obligation to continue with this deal, however, if you choose to part ways with us, you will have to lose this deal too.

Does a mortgage illustration guarantee me a mortgage?

Though we would love to say yes, unfortunately, we can never guarantee any applicant a mortgage. Don’t forget that a mortgage illustration follows your free mortgage appointment, therefore, you have not provided any documents to support income, source of deposit and affordability as of yet.

Is a mortgage illustration the same as an agreement in principle?

Before receiving your mortgage illustration, you will receive an agreement in principle (AIP). This shows that a lender is willing to let you borrow from them in principle of you being able to evidence your income, source of deposit, affordability etc. This is not the same as a mortgage illustration.

Remember that a mortgage illustration is an outline of the mortgage product and not a document from the lender saying that you can borrow from them. It’s also worth knowing that these do not guarantee a mortgage either.

Speak to a Mortgage Broker in Hull

First time buyer in Hull or home mover, we are here to help! We have been in the sector for over 20 years now, and know how to try and find you the best deal possible.

You will receive a free mortgage illustration after your mortgage advisor in Hull has found you the perfect deal. You can book online and choose the best date and time for your mortgage appointment.