Your Lender’s acceptance of your loan application or even a certificate of eligibility is not a “Mortgage Offer” on which you can exchange contracts and bind yourself to buy. This Offer is essential and it will include many standard and special conditions, some of which must be fulfilled before contracts can be exchanged. E.g. it is normal for any adult child who will be living in the property to be asked to sign a “Consent to Mortgage” form.
Almost invariably we will be asked to identify you and to witness your signature(s) to the Mortgage. This can only be done in the presence of a Solicitor, Conveyancer or properly qualified Legal Executive. We will take this opportunity to explain, in normal English, what the Mortgage conditions are, how you may breach them and what to do in such circumstances.
One normal condition is that interest starts to run from the date that the mortgage advance is sent to us. This is like the Taxi driver starting the meter from the moment he arrives at your house – not when you start your journey. This means that on the first payment you owe not just that month’s payment but also the amount back to the date the funds were sent. If it applies,we will explain this and how it works in practice in more detail.